Going with the flow is best anti-recession recipe: IFA
IFAs can weather the recession by adapting their business models in line with economic changes, Mel Kenny has said.
The chartered financial planner said his London-based firm Radcliffe & Newlands has managed to survive the recession by reprioritising its work based on what sort of business was more prevalent.
In a newsletter entitled, Financial View: Thriving in any Environment, he said that despite the backdrop of social and political turmoil, it is important IFAs can still keep their competitive edge.
He said: “Many companies are struggling in this difficult economic climate but we are continuing to grow.
“We do this by having a plan to achieve our goals and the discipline to stick to it. Adapting to the recession has meant changing our focus.
“Some types of work have decreased while others have increased to take their place. These are just seasonal changes though and when the economy changes again, no doubt the balance will swing back.”
He added IFAs must be consistent in their vision and review its progress towards their goals and take action if required.
Mr Kenny said: “Our vision remains the same. First, we want to grow our firm to 40 advisers with a team of support staff.
“We expect the firm will have 60 to 70 people in it at that point. Second, we want everybody to work together for a common purpose.
“Everybody working on one floor of a single office avoids the feeling there is more than one team, as so often happens when companies get above a certain size.
“We want to keep our team atmosphere.
“So that’s our vision and our goal. The plan is simple too. Seek out and recruit the best advisers, paraplanners and support staff we can find, then provide them with all the things they need to work efficiently.”
In the 12-page newsletter, also added networking can help IFA firm generate business. Mr Kenny said this is a cheaper way to generate business than advertising.
He insisted advisers should not only attend industry events to network, but also host their own networking event.
He added: “Sharing ideas is worthwhile too and you can learn a lot from talking to knowledgeable people about their profession. Cross-pollination of ideas from one industry to another can sometimes give you a real edge.
“The best networkers are usually the ones that do it naturally but you can also learn to make it work for you.
“If you are the sort of person who finds social interaction tiring rather than invigorating then be prepared to put in the effort to attend a lot of events.”
