Reading the research report released last week from Adviser Ratings, it appears up to 14,000 advisers may leave the industry in the next five years – post findings from the Royal Commission and upgraded education standards from FASEA.
It also means $900billion of net client assets will be in transition, according to their research.
To me, this seems like an opportunity for advisers who are in it for the long term. Whilst it will be tough for those who decide it’s not for them anymore, the resulting process will open a massive window for remaining advisers to attract new clients.
This opportunity however, will only be realized by those advisers who know exactly what type of adviser they are, and what kind of clients they want to service.
The report makes a good point – that advisers servicing an ageing population have very different needs, procedures and skillset than those advising millennials and a new generation of Australians looking for advice. I imagine both types of clients will be in transition.
So if you are in your business for the long term, and want to get ahead of the game to capture growth and help more Australians get quality financial advice, here are three things to consider in order to position yourself for growth.
1. What business are you running right now? Is this the business you want?
Sometimes the only way to change is by creating a strategy for the future and pointing the ship in that direction. No change in any business happens overnight, and the reality is that over the next five years there is going to be plenty to keep advisers busy – even just with compliance and business as usual. But if you know you want to service a younger client than you currently do, start thinking about what tools you need and how you could communicate to a different client set. Then you can collect the tools and data you need over the coming years, rather than scrambling over months.
2. Can you collaborate with outgoing advisers now?
We all know there will be a massive drain of knowledge and talent if 14,000 advisers leave our industry. If you know anyone that is thinking of leaving over the next five years, how you can capture their knowledge and provide them a legacy to leave with? Most people want to know they have made a difference and this could be part of it.
3. Can you plan ahead for resources?
Finding talent is hard to do, and if you are planning on growing your client base you need to find the right people to help. Doing so over years – not months – is the right way to go about it, and allows for a realistic timeline to train people and figure out which ones work and which don’t. Not all will, that’s the law of people.
Of course there are a dozens of other things to consider for advisers looking to stay and grow in the business long term. No More Practice Education is committed to bringing you experts, learning and tools to help you do so.
As always, thanks for your support. We believe in what you do wholeheartedly.
Until next time,
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