Business consultants specialising in financial services are now big business. Even more so when financial services firms are seeking competitive advantage.
A recent Sunday Times sponsored supplement dedicated solely to business consulting underpins this thinking and reveals that over the last five years, fee income growth has doubled.
For any of you who think that business or management consultants are wet-behind-the-ears graduates, or looking to sell their company’s technology or outsourcing services, it’s fair to say that the role has actually come a long way. Today, management consultancies are populated with sector specialists offering broad skills, professionalism and experience that is transferable across a number of industries. The best work in partnership with client companies offering new ideas, new ways of reaching out and attracting new customers – or retaining existing ones – and implementing the strategies they advise. The only drawback is that for many brokers, the fees commanded by these silent partner business gurus are completely out of reach.
Juggling jobs
The vast majority of brokers I know are driven professionals, often sticklers for detail who know how to run their businesses inside out. They’re often juggling the jobs of two or more people before they even start to think about expanding their business either through more man power or better technology. Most certainly don’t need a busi-
ness guru charging a six-figure fee to tell them how to do their job.
What most good brokers need is a sound support network – to provide a fresh pair of eyes to confirm or challenge strengths or weaknesses, to bounce ideas off or to provide fresh insights into different ways of working. This enables them to build on strengths, solve problems, develop ideas and ultimately, grow.
At Home of Choice, we're leading the way in how things should be done. We have in place a highly experienced five-strong team of Business Development Directors who provide expert advice and support to our network members for no charge. They are all entrepreneurial individuals who have run their own businesses in the corporate world. They've got invaluable hands on experience and provide advice on 25 revenue making models to add real value to brokers' businesses.
Working closely with the business quality directors, the Business Development Directors offer a wide range of tools designed to help brokers run a professional business that delivers quicker transaction processing, improved client servicing and frees up more broker time enabling them to either chase new leads or squeeze in a round of golf - not forgetting that to the broker 4 hours spent on the golf course is 4 hours of valuable networking.
The business development director works closely with firms to tailor a business model that suits their market needs - ranging from supporting a recruitment or marketing strategy through to workshops for our peers where ideas and the latest practice can be shared. One of our most powerful business development tools - originally put in place as part of good basic client servicing - is to issue an email at the start of the week to inform brokers about the remuneration they will receive later that week. It's a simple piece of psychology, by reassuring member networks as to the remuneration they can expect, they are able to focus on their day job with confidence rather than with the uncertainty of not knowing how much they will be paid. It also serves as a great motivator to improve business figures for the future.
Working hand-in-hand with people who understand their
busi
ness adds real value to the relationship between network and broker, and significantly, it adds real value to the bottom line.
Network support
Helping brokers to grow their businesses and become more strategic is more important than implementing the best IT systems; more important even than negotiating higher procuration fees. The very best networks already support brokers in developing new product ranges, in marketing, in expanding their teams, and by investing in training and development. But if a network or club truly values the adviser’s contribution, and is committed to building long term, mutually profitable partnerships, then they need to provide access to a leading edge business development resource – the business partner that never sleeps.
Business development directors work with brokers to free up valuable time and use it more wisely – remember, very few brokers spend the recommended 30 per cent of their time developing new business, usually because they are too busy chasing networks for payment or resolving a tenuous administrative issue. When advisers focus on doing what they do best, they reap the dividends.
A broker’s ability to sell is rarely questioned. But the ability to attract new business from new and existing clients marks the difference between success and mediocrity. Here are some simple steps to help brokers exploit the information at their fingertips to improve the quantity and quality of new
business:
c Communication is paramount in cementing good client relationships and helps reassure them that they are receiving a consistently good service – satisfied customers always make recommendations to friends and family. Aim to communicate with clients at least three times a year. Any less is akin to negligence and any more smacks
of stalking.
c Think creatively when communicating to make an impact – don’t send the ubiquitous bouquet of flowers on moving day, send some branded mugs and a jar of coffee. Instead of using standard mailshots, invest in an e-news programme that encourages greater interaction from clients using tried and tested devices such as competitions and quizzes. Invite your clients to contribute stories about their experiences of working with you and use the news as an opportunity to flag up the new services you offer. Most importantly, include your contact details so that clients can contact you quickly to discuss any further financial
planning.
c Use end of deal periods as opportunities for face-to-face reviews with clients – if you time it well, you’re not only taking away the burden from them of having to search around for the best deals; you’re developing your relationship and taking it into a second phase.
c Your existing client bank is a major source of new business – exploit it and especially the information gathered during the factfind. Use birthdays or anniversaries to trigger a text reminder service to renew dates for car and home insurances services. Use hobbies and interests as opportunities to entertain your client and their guest; as well as nurturing your existing relationship, it will serve as an introduction to their guest and open up more opportunities for recommendations and warm leads.
c Brush up on your networking skills. Networking can open up endless doors but you need to have a game plan in place. Who do you want to meet? What do you want to talk about? What can you offer them? Will your investment deliver returns? Mutual referrals and introductions between professional business people create warm leads for you to follow.
c Carry out a short survey among clients to get their views on your service. What works? What doesn’t work? How do they prefer to receive correspondence – via e-mail. text message or letter? Are they happy to be reminded when their policies or fixed terms are about to expire? Are their contact details the same? This could also double up as an exercise to update you with any new lending or insurance cover requirements they
may have.
Mortgage intermediaries who have experienced the hands-on support of a business development director have seen their business develop at a rapid pace. What were one and two-man-bands just two years ago are today employing six advisers to cope with the incredible boost to production. Significantly, they are still recruiting with the support and advice of their silent partner – the dedicated business development director.
