1. Think, Plan, Commit, Act Futuro Conference – Adelaide 2013 Presented by: Julia Skull 17 th September 2013

2. Why create a business plan? * Business Health – Future Ready IV Report 2012 Surprisingly, only 57% of financial planning practices have a clearly documented business plan* However, the increase in profit for firms who effectively business plan vs those that don’t = 165%* Its good business practice Will help increase your business valuation You will be more successful

4. 1.Hold a Business Planning Day with key stakeholders (consider involving all staff); 2.Document your plans and actions, and; 3.Allocate responsibility and communicate to those involved; 4.Review, track & monitor the plan monthly; 5.Communicate and provide feedback minimum quarterly. What is effective business planning?

5. A Structured Process 1. Setting your vision & Goals 2. Your Financials 3. Growth strategies 4. Advice delivery model 5. Resources and operations 6. Other strategic plans 7. Implementation - developing the plan 8. Monitor and review One Page Business Plan

6. What distinguishes the highly successful advisers from the rest of the market? 1. Setting your vision & Goals It isn't: Opportunity Experience Education Or even luck It is simply: The desire and ability to create a vision for the business The confidence to try and make it a reality Think

7. “A powerful business tool that can be used to motivate, unify and inspire” Your Vision Your Staff Your Referral Partners Your Clients Your Potential Successors Think

8. When its clear a vision is like a light house that pulls and guides you and your team continuously towards your strategic objectives. Your Vision Think

9. A vision statement answers the question, – "Where do we want to go?“ It sets the direction for your business It inspires you to succeed and exceed Gives your staff & clients something to believe in Why is your vision statement important? Think

10. 1.Hold a vision planning workshop with all Business Partners 2.Paint a mental picture of what your business will look like in 3- 5 years 3.Work towards creating a clear image of a possible future that is compelling to all stakeholders 4.Involve key staff in the process - their engagement is key to your success 5.Communicate to all stakeholders Steps to creating your vision Think

11. Everything you do must have the vision in mind In order for your business plan to work – it must be based on your business vision. Goals and Strategies must align with your vision The vision based business plan Think

12. Develop SMART Goals and Objectives Specific – it is clear and well defined Measurable – can it be quantified? How will you know when it is accomplished? Achievable – Be realistic. Make sure your goal is feasible in terms of the resources available to you Results oriented - Focus on the end results you desire rather than the activities necessary to get there. Time Based – Give yourself a deadline Think

13. Examples of SMART Goals To achieve sustainable profit growth of 20% by June 2014. Increase revenue generated by new business from 20% to 25% by December 2014. To acquire an average of 2 new ideal clients (revenue of $5K+) per month in 2013 Improve business efficiencies by increasing profit per employee by 10% by June 2014 Think

14. Breakout Session 5 minutes Goals & Objectives What are your SMART Goals in the: Short Term Goals: 12 months Medium Term Goals: 1 - 3 years Long Term Goals: 3 - 5 years

15. 1.Cashflow – statement of cash flow 2.Revenue – focus on what you can control 3.Expenses – fixed & variable 4.Monitor & Review 2. Your Financials Plan

16. 1.Prepare a 12 month Statement of Cashflow – Opening balance, cash incoming, cash outgoing, closing balance 2.Be diligent with your invoicing 3.Follow up outstanding debts in a timely manner 4.Monitor the payment of expenses Cashflow Plan

17. Revenue What parts of the revenue equation can you control? Price - YES Number of services offered - YES New clients – NO Retention of clients – NO Plan

18. Where is YOUR revenue coming from? Break it down Business revenue targets Finding new clients$_______ Getting existing clients to spend more $_______Retaining existing clients$_______ Plan

19. Expenses - understanding your costs Plan 1.Review & analyse your expenses from the previous year 2.Set expense budgets and stick to them (or have strategies in place to deal with differences) 3.Keep accurate and detailed records so you know where your money is going. 4.Review your expenses monthly and identify those that exceed budget. Question why?

20. BenchmarkAverageTop 20% of firms Revenue per income producer $400,000$750,000 Active clients per income producer 80100 Average fee per active client$4,000$7,000 Revenue per employee$150,000$250,000 Gross profit margin48%60% Net profit margin21%35% Benchmarks for budgeting Catalyst for Financial Planners Benchmarking 2012 Plan

21. Monitor & Review Allow some flexibility when your budget is wrong Have a strong determination to stick to your budget However, the secret to any business budget is your ability to be flexible. – Such as holding cash reserves or finding ways to reduce expenses following a rough month can help bring you back on track quickly. Plan

22. Inevitably growth will be part of your long term business objectives. Where do you start? a)Existing client base - upselling b)Referral networks – new clients c)Strategic marketing – campaigns/branding 3. Growth strategies Plan

23. Conduct an analysis: 1.What is the average age of your client base? 2.What is the gender ratio of your client base? 3.Is there a commonality with professions of people you work with (such as farmers or medical professionals)? 4.Do you know what the breakdown of your revenue via service is (such as insurance or estate planning)? a) Existing Client Base Plan

24. Where do the opportunity's lie in your existing client base? a) Existing Client Base Niche Market Clients networks – community involvement Client Sale Referrals from existing clients New Services ie Aged Care/Estate Planning Plan

25. Accountants b) Your Referral Networks Your Company Your company Lawyers Mortgage brokers Clients Community groups AccountantsSocial Media Plan

26. 1.Mind Map your referral networks – think about ‘all’ your connections 2.Develop a referral partner process & plan 3.How do your referral partners ‘see you’ – what is their perception of you and is this accurate? 4.Marketing campaign/plan – seminars, education workshops, joint meetings 5.Monitor and review the relationship regularly b) Steps to developing successful Referral Networks Plan

27. Business revenue objectives translate simply into marketing objectives… revenue growth is by Finding new clients, Getting existing clients to spend more, or Retaining existing clients. c) Strategic marketing planning Plan

28. Where is YOUR revenue coming from? Break it down Business revenue targets Finding new clients$_______ Getting existing clients to spend more $_______Retaining existing clients$_______ Plan

29. c) Strategic marketing planning Business Revenue Objectives Finding New Clients Getting existing clients to spend more Retaining existing clients Plan

30. c) Strategic marketing planning Finding New ClientsPromotional/Brand Activities Direct Mail, Advertising, Seminars to the public at large Referral Partners Professional, Corporate & Group COI’s Existing Client Referral Prompt at review, Tactical campaigns Getting existing clients to spend moreOrganic Growth (Client driven) Change in clients circumstances Tactical Growth (Business Driven) Upsell, increase services offered Retaining Existing ClientsDeliver on your promise Have a strong service model and offering Remind your clients what you are delivering Make barriers to client exit Be the key – extend services, referral partners Plan

31. 1.Identify 2-3 growth strategies you would like to implement to help achieve your goals and objectives. 2.Share with the person next to you. Remember to always consider your vision & your goals Breakout session – 10 mins Developing your strategies for growth

32. To stay ahead of competitors and improve efficiencies its important to review each and every year your: a)Segmentation method b)Services / service levels c)Pricing methodology 4. Advice delivery model Plan

33. Segment review 1.How do you currently segment your client base? Revenue or are there other factors you consider? Marketing and efficiencies? 2.What are your segments called and how are they defined? 3.What’s working and what’s not working in relation to your segmentation? 4.Do you re-segment your client base every year? a) Segmentation method Plan

34. Services Review 1.How do you currently service your client base? 2.What are your service packages called and how are they defined? 3.What is the cost to the business to deliver those services? 4.Do your clients regularly question the value the get from you? 5.Are your service levels differentiated or do your clients all received the same service – is this intentional? b) Services Plan

35. c) Pricing Pricing Review 1.Are you priced competitively? 2.Do the FoFA changes impact your pricing model? Do you need to make changes? 3.What is your profit/value margin per client? 4.Are all your clients profitable? Plan

36. Advice Model – Things to think about Apply a flexible segmentation model Have clearly defined services / service levels – use technology Resource allocation costs are greater for new business Don’t forgo new business revenue in hope of future ongoing revenue Do not undervalue your strategic advice Plan

37. 5. Resources and operations Plan Right people, right jobs – job descriptions Technology – are you using it effectively? Do you have the resources to implement your plans? Culture – staff retention, values Processes and efficiencies

38. To achieve your vision and meet your goals and objectives, growing organically may not be the only strategy to consider. You may need to consider other growth plans such as: Acquiring another business – FP, Accounting Formal Joint Venture or merging with another business 6. Other strategic plans Plan

39. 1.Are you looking to develop a joint venture or merge with another business in the next 1-3 years? 2.Are you looking at acquiring any companies over the 1-3 years? Have you thought about the range and scope of this project for your company? 3.What is your business succession strategy? How do you plan on exiting the business over the next 1-3 years? If someone were to die or leave tomorrow what would the business situation be? Other strategic plans – things to think about Plan

40. 1.Document your plans – 1 page plan minimum – Full plan every few years 2.Develop your action plan and set priorities – breakdown into 90 day sprints 3.Determine who will be responsible for what actions and set time frames. How will they be measured? 4.Communicate to all key stakeholders 7. Implementation Developing the business plan Commit & Act

41. Consider a business mentor or coach: Someone who you believe can really add value to your business and who you respect They will hold you accountable to agreed actions Don’t go overboard – start with one person and work up Be prepared to pay – “skin in the game” Review meetings at least quarterly! 8. Monitor and review Commit & Act

42. Final words “The general who wins the battle makes many calculations in his temple before the battle is fought. The general who loses makes but few calculations beforehand.” Sun Tzu Chinese Military General, Strategist and Philosopher 400BC The Art of War

43. Questions