Whether you are trying to improve your golf game, get fit or make significant changes to your business, one thing is true.  Taking action starts by taking stock. It’s true if you’re trying to help a client invest for the future and it’s true (in my world) if you're trying to help advisors thrive and grow. This blinding flash of the obvious hit me when an advisor called me after a webinar I ran recently. During a one-hour webinar (which was also the subject of a recent blog post) we focused on how to regain control of your business and lay a foundation that is strong and stable enough to support significant growth. I will admit, I walked through A LOT of information – 25 discreet steps to complete the 5 critical actions below.

1. Define your ideal client
2. Segment your clients based on value
3. Define your offer, by segment
4. Assess capacity and profitability
5. Communicate your value

The advisor had a pretty simple question - where do I start? I realized that despite the fact that I had laid out a step-by-step approach that had a clear start and finish, I couldn’t answer his question.  I knew where to start, in theory, but I didn’t know where he should start.  I couldn’t answer the question without a lot more information on what he had already done and where he was going. So as much as I felt I was sharing information that was important and had mapped out the process in extreme detail, I knew I had missed a step.  I needed to help those who attended the webinar (or read the blog) to take stock if they were going to succeed in laying a strong and stable foundation for engagement and growth. That was my mistake and it’s time to fix it.

How Do You Stack Up?

So today I’m going to do something a little different.  Before moving on to a new topic, I want to go back and help you take stock as the first step to creating a foundation that is strong and stable.  The webinar and the post were both about regaining control and because the  content seemed to strike a chord, I want to ensure you can take meaningful action. To that end, I created a simple self-assessment tool based on the 5 Actions.  The tool will help you take stock of where you are today and, in so doing, highlight where you need to start. You can access the assessment below.  It's an excel file in which you can assess your strengths and weaknesses, generate an individual score and create an action plan. You won’t be asked to submit any of that information – this is just a tool for your own use and interest.

‍Click Here For Assessment

‍You can review the key points below, however I think you'll find it helpful to rate yourself and see what that process uncovers.

1. Define Your Ideal Client

• I have clearly defined the work that I am passionate about delivering (e.g. comprehensive financial planning versus money management).
• I have clearly defined the characteristics of my ideal client (those who value the work I want to deliver and who energize and inspire me).
• I have assessed the economic opportunity associated with the ideal client I want to target.
• I have defined specific client acceptance criteria that will allow me to assess if I will (or will not) work with a prospective client.
• I have built my business around the specific and unique needs of my ideal client.

2. Segment Your Clients

• I have clearly defined the drivers of client value (e.g. assets, referrals or influence).
• I have a robust rating system in place to assess clients based on the drivers of value I identified.
• I have rated all of my clients using the system I have created.
• I have linked client ratings to specific segments (e.g. Platinum, Gold, Silver).
• I have a process to keep client segmentation ratings up to date.

3. Define Your Offer

• I have outlined the communications, products and services clients in each segment will receive.
• I have assessed the time that I (and my team) will need to invest to deliver on the above.
• I have clearly assessed team capacity based on my service goals and existing resources.
• I have a communications calendar that outlines what clients will receive and when.
• I have a clearly defined (and engaging) client review process in place.

4. Assess Profitability

• I understand the true cost of delivering on my service goals for each segment (e.g. average cost of an A client versus a C client).
• I have calculated the average revenue generated by clients in each segment.
• I know the profit margin for a typical client in each segment.
• My service plan is profitable for all segments.
• I have made conscious decisions on how I will deal with unprofitable clients (if relevant).

5. Communicate Your Value

• I have defined service standards for the business (e.g. response time to calls).
• My team fully understands who is responsible for what, when it comes to delivering on our service standards.
• I have a formal, written service agreement that outlines what clients can expect.
• I have a defined process in place to share my service agreement with new clients.
• I have a defined process in place to use my service agreement to reinforce value with existing clients.

Take Action

Once you have completed the assessment, review your scores and determine where you need to fill in the gaps.  By doing so you’ll be on your way to regaining control of your business and laying the foundation for deeper engagement and profitability.

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Thanks for stopping by,

Julie