New business activity and succession planning are key objectives for advisory practices this year.
The major priority for advisory practices in 2010 will be to regain profitability levels post the onset of the global financial crisis [GFC] and to place greater importance on succession planning, independent advisory group Business Health has said.
"While a lot of advisory practices did well in covering their expenses last year, the major objective this year will be to ramp up new client acquisition opportunities so that practices can get profitability levels back to where they were prior to the downturn," Business Health partner Terry Bell told InvestorDaily.
Bell said he expected to see more activity around marketing, seminars, seeking referrals, expanding services or establishing strategic partnerships, with acquisitions always on the agenda.
He said the natural progression of clients getting older was another reason why practices needed to look at ways of increasing client numbers, as more would draw down on their investments in order to live in retirement.
A greater number of practices were also likely to move to a fee-for-service model in order to ensure that remuneration wasn't tied to a shrinking asset base, Bell said.
"While ramping up new business activity and increasing client numbers are all key areas of focus for 2010, succession planning also requires equal attention as it too can impact greatly on profits," he said.
Bell added that he hoped more principals would seek external assistance to make it an easier process for themselves, whether through the help of a business development manager, practice development manager or coach.
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