5 Steps to Manage Critical Mass

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It never ceases to amaze me when I get a call out of the blue from a former client who is concerned with how their business is doing. Typically, they have had a downturn in their production for various reasons such as lack of prospecting or motivation or even as a result of being complacent. However, today was an interesting turn of events when I receive a call from a previous client, Seth, who was excited to inform me that his business had reached what he termed “critical mass” and he didn’t know what to do about it.

Apparently, his consistent prospecting had paid off and he was now bringing in more assets, new accounts and doing more production than he had ever done before. I congratulated him on all of his accomplishments and that is when the conversation turned to the real reason for his call. He simply said, “I need your help. I have no idea how to manage this level of success.”

I’m sure we can all agree that this type of scenario is a good one to have, but regardless it was now proving to be a challenge. Since we had worked together, he trusted me and knew we would brainstorm a solution.

Following is a brief overview of some of the suggestions I would offer to you if your business grows beyond your expectations.

Step 1: Know What You Like and Don’t Like to Do. Some advisers and agents like to prospect while others like to manage their client base. The first step is to get crystal clear in understanding what you like and don’t like to do. Simply make a list of all the weekly activities you need to accomplish regularly and put a plus or a minus after each. It won’t take long before you realize what activities you look forward to doing and what activities you dread—if you didn’t know already.

Step 2: Do What You Love and Delegate the Rest. In Seth’s case, he loves to prospect and that is a big reason why his business had taken off. He also loves to manage his client base. However, about six months ago his assistant had decided to be a stay-at-home mom so she resigned. To save money, he chose to be his own assistant. Unfortunately, there is no one to delegate things to that he doesn’t like to do, such as the administrative activities and day-to-day operational tasks. The solution for him was to find someone who loves to do these types of activities. So, he needed to hire, train and delegate everything not involving prospecting and managing the client base to somebody else.

Step 3: Create a Scalable Business Model and Stick to It. In order to consistently manage steady growth, it’s important to have a scalable business model. Seth had realized that years ago when he transitioned his clients to fee-based accounts and continued prospecting as well as systematically servicing his clients. Within a few short years, he had doubled his assets and revenue. His fee-based model allows him the time to continue growing and managing his book of clients. And it shows.

Step 4: Create a Team. At some point, it’s important to admit that in order to continue growing and servicing your client base effectively it takes more than one or even two people. Eventually, Seth will have to look at adding some additional people to his team. One example would be to add a paraplanner to help put financial plans together. Since he is a people person and loves to connect, it might be a good fit to have someone who loves to do manage the behind the scenes work. This would free up some of his time to continue prospecting and meeting with his client base.

Step 5: Expand Your Value. Another option is to expand your value by introducing additional services to your client base. An example of this is for Seth to add an insurance agent to the team who would cross-sell to the client base offering quotes on property/casualty, life, health and even long-term care insurance. Doing this would not only help his clients but it would also help him retain his client base.

Why Strategic Growth is Important
Generating critical mass doesn’t happen to everyone. However, if you consistently prospect it can happen to you. The reason why having a strategy to consistently grow your business is important is because it will help you reduce the growing pains that come along with success. When you know what the next step is, then you are not afraid to take it.

Have you mapped out your success? If not, why not? Discuss this with me in a complimentary 30-minute coaching session. Schedule one by emailing Melissa Denham, director of client servicing.

Dan Finley
Daniel C. Finley is the president and co-founder of Advisor Solutions, a business consulting and coaching service dedicated to helping advisers build a better business.

One thought on “5 Steps to Manage Critical Mass

  1. Pingback: Five Little Things for Your Monday: June 12, 2017 – Twenty Over Ten

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