{"id":7681,"date":"2020-03-25T14:04:19","date_gmt":"2020-03-25T19:04:19","guid":{"rendered":"https:\/\/www.figmarketing.com\/blog\/?p=7681"},"modified":"2024-04-19T11:23:49","modified_gmt":"2024-04-19T16:23:49","slug":"its-never-been-more-challenging-to-be-a-financial-planner","status":"publish","type":"post","link":"https:\/\/www.figmarketing.com\/blog\/its-never-been-more-challenging-to-be-a-financial-planner\/","title":{"rendered":"It\u2019s Never Been More Challenging to Be a Financial Planner"},"content":{"rendered":"\n

Updated April 19, 2024, at 3:33 PM<\/em><\/p>\n\n\n\n

As a financial planner, you expect to wear many hats. You accept and even relish the role of a financial planner, asset manager, and a bit of a behavioral psychologist. <\/p>\n\n\n\n

However, financial professionals\u2014particularly independent ones\u2014have the additional responsibilities of running small- to medium-sized businesses. This might include having marketing, public relations and communications, an IT specialist, an HR manager, and other tasks that have little to do with wealth planning. <\/p>\n\n\n\n\n\n\n\n

If you\u2019re like most industry pros, you\u2019re simply not well trained in these areas. Or at the very least, you don\u2019t like to get bogged down with managing processes outside of client relationships, planning, and sales. And while some issues tend to re-appear, there are always new issues popping up that demand attention. <\/p>\n\n\n\n

Let\u2019s examine some of the common challenges financial planners face today.<\/p>\n\n\n\n

Staffing Challenges<\/h2>\n\n\n\n

Business\nmanagement challenges vary based on the size and maturity of your business but\ntraining new staff and succession planning both present significant problems. That\u2019s\ndue to a lack of formal training to grow and groom talent successfully.  <\/p>\n\n\n\n

Typically,\nsecondary agents start by processing applications and other forms, then give\nplanning a try before moving into sales. This makes sense and is appropriate\nfrom a sequencing aspect. Still, any training process should include\nperformance objectives that are associated with a predetermined timeline. This\nshould be adjusted as required skills and responsibilities change over time for\na secondary planner. Once in place, a sound training process provides a track\nfor identifying and growing successful producers for the future of your firm. <\/p>\n\n\n\n

If you\u2019re the senior planner and business owner, it\u2019s your responsibility to develop an environment that educates your staff and provides opportunities for the business and personal growth of your team. This allows your clients to benefit from an improved client experience. Even better, you\u2019ll have a process that develops internal candidates and potential successors.<\/p>\n\n\n\n

Succession Planning<\/h2>\n\n\n\n

Succession planning is by far the number one issue that prompts a financial planner or professional to seek our input. Our Next program works with over 40 agents in various stages of the continuity and succession process, from mapping out a proper continuity strategy to identifying potential successors, to exiting the business. <\/p>\n\n\n\n

Any continuity\nplan should cover your short-term absences (for instance, a health-related\nissue), as well as any damage to your working environment. In addition, key employees\ncan have significant impacts on the operational success of your business. These\nboth might require continuity and succession planning.<\/p>\n\n\n\n

Succession\nplanning for financial professionals can be extremely mentally, emotionally,\nand financially challenging. Long before you can get to the finish line, we\u2019ll sit\ndown with you to have conversations that create a successful transition. Other\nconsiderations to remember in a succession plan are the transfer of client\nassets, technology, staffing requirements, and cultural fit. <\/p>\n\n\n\n

Through our partnerships with industry experts, we\u2019re able to assist you with structuring and financing the transaction. Just like the tailor-made solutions for your clients, every exit strategy is unique because every agent wants to structure a deal that works best for them. Be prepared to spend considerable time reflecting on your desires, as well as the needs of clients and staff. As you move through the process, newly discovered information will shape each component of your succession plan.<\/p>\n\n\n\n

Lastly, proceed with patience and grace. Both will be necessary to navigate this stressful time in your life successfully. <\/p>\n\n\n\n

Designing Effective Compensation Plans <\/strong><\/h2>\n\n\n\n

As a business owner, it\u2019s crucial to align your compensation with employees\u2019 roles and responsibilities so your firm can adequately serve its constituents. At <\/strong>Surge Business Consulting<\/strong><\/a>, we can help you restructure your compensation plans for planners and support staff alike. <\/p>\n\n\n\n

For example, one financial\nprofessional had one-third of a secondary agent\u2019s compensation tied to\nnon-producing tasks. This was even more egregious since the secondary producer\nestimated the non-producing responsibilities accounted for about 10% of the\nworkload. <\/p>\n\n\n\n

If you want to encourage production, compensation must reward the desired activity. And in this case, avoid (over) compensating the wrong activities. When necessary, another member of our Family of Companies, FIG Talent Solutions<\/strong><\/a>, can assist you with job descriptions, compensation and incentive plans, and performance evaluation tools.<\/p>\n\n\n\n

Technology + Workflows = Efficiency<\/strong><\/h2>\n\n\n\n

This next item appears often, but it bears repeating: Remember to take full advantage of all technology, including your customer relationship management (CRM) system. <\/p>\n\n\n\n

Today\u2019s CRM is\nmore than an address book. And our proprietary Force CRM\u2122 is no different. With this powerful platform, you can manage your entire office’s business securely and efficiently.\nFrom marketing and prospects to data feeds and file storage, Force CRM\u2122 is your\none-stop-shop.<\/p>\n\n\n\n

Regardless of\nwhich CRM you choose, if properly deployed, it can become a robust database\nthat you can leverage for superior client service, communication, social media,\nand marketing campaigns. <\/p>\n\n\n\n

It’s no secret the more extensive your business grows, the more crucial time management becomes. This often means improving back-office efficiency as advisors try to maximize time spent with clients and minimize time on paperwork.  <\/p>\n\n\n\n

Unfortunately, it can be hard for a financial planner to manage capacity and allocate the team\u2019s time. Organizations with poor efficiency skills will soon become overwhelmed by business growth, and the support and service work that invariably come with that growth. <\/p>\n\n\n\n

Symptoms of poor time management and inconsistent prioritization include: <\/strong><\/h6>\n\n\n\n