Best practice financial planning businesses to increase spending in 2009 amid industry cost-cutting.
The six finalists in this year's IFA Best Practice Competition indicated at a recent roundtable they all plan to increase spending in key operational areas of their business come 2009.
While most acknowledged that revenues will be tight, financial planning business owners said they were prepared to fund the increase through a lower 2009 profit dividend to ensure the sustainable success of their practices over the long-term, Business Health partner Terry Bell said.
"There has been considerable focus on cost-cutting and reducing expenses across the industry due to recent market turmoil," Bell said. "We are constantly hearing about job cuts, retrenchments and layoffs."
The six IFA Best Practice Competition finalists know that to take their practices to the next level they must invest in their businesses in 2009, Bell said.
"Our finalists see great market opportunity in terms of attracting new clients through investing in things like staff and client seminars, particularly as many of their industry colleagues are reducing activity with a view to reducing expenses," he said.
"Businesses that are letting go of quality staff to reduce expenses now should consider what they are doing long-term, particularly the costs incurred when recruiting and training new staff."
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