Elixir cites four ingredients for growth

17-Feb-2017

By Sarah Kendell

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Advisers who want to achieve business growth in the next 12 months should assess their value proposition, technology, pricing model and the time spent running their practice, according to Elixir Consulting managing director Sue Viskovic.

Speaking in a webinar hosted by XY Adviser, Viskovic said it was vital that advisers “have a reality check on their relevance” as well as look at ways they could improve efficiency and profit margins.

“It’s about taking an honest look at what you do for your clients – that could be anything from being the person they turn to when they don’t know what decisions to make, to managing their money better than anyone else can, or being an educator that can empower them to make good financial choices,” she said.

“It’s also important to have a look at your technology – if you’re spending money on software, make sure you are using really good systems that talk to each other and are doing what you want them to do.”

It was also important to continually reassess the pricing model – an issue of particular importance given restrictions on life insurance commissions that would come into force next year, Viskovic said.

“Pricing is always an issue for advisers – I’m yet to meet a business where they say they’ve got their pricing right and it will stay right,” she commented.

“It’s not just the quantitative aspect of it – there’s a whole mindset around pricing, and a lot of people are still challenged by asking for what they are worth or not totally believing in it, or maybe they want a better profit margin than what they are asking clients for.”

While the new laws had made the subject of commissions taboo in some circles, Viskovic said there was nothing wrong with some form of risk advice commission as long as pricing structures were clearly disclosed.

“Everyone has a different view on it, but ultimately it’s what the business owner wants to achieve, and from there looking at the different options they can employ,” she pointed out.

Advisers should also consider whether their current situation was working from a time perspective, she said.

“Some people get so caught up in running things day to day that the business owns them and they don’t see their kids at night,” Viskovic said.

“Unless you’ve got time for yourself and the ability to look after yourself, the business is ultimately not going to fulfil you.”

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