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Firms told to target 15 per cent growth a year

Firms told to target 15 per cent growth a year

Advisers will not grow their businesses unless they make constant changes to their firm's structure, Brett Davidson has said.

Speaking at the Chartered Institute for Securities and Investments's financial planning conference in Newport, the management consultant and founder of FP Advance said it wasn't unreasonable for advisers to grow their businesses by 15 per cent a year.

But Mr Davidson said many firms did not achieve this because their firms were hitting "roadblocks".

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He said: "Why couldn't you grow at 15 per cent per annum? It is not an outrageous number.

"I know it is not a walk in the park but I know from experience that you can continue to grow at that rate but it requires some resourcing when you get to different levels or different ceilings of complexity.

"The structure that gets you to your first milestone won't necessarily get you to your next one.

"We are talking about tweaks and additions but changes significant enough that most businesses stall."

He said advisers who had succeeded in growing their businesses achieved this through good business plans, hiring advisers who are part of the next generation and simplifying their processes.

Mr Davidson said advisers needed to strip out the things which do not add value to the client and put a succession plan in place.

He said that if advisers are currently struggling with their business that did not mean they couldn't think about growing it.

Mr Davidson said: "If that's true you are probably not going to get to [your milestone] unless a whole bunch of stuff changes. 

"Don't choose the status quo because the pain of a not-quite-working business could be limiting your thinking."