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PRACTICAL IDEAS TO LEARN, TRY AND DO

Why an Adviser doing admin is costing your business big time [VIDEO]

Here’s a short video (around 3 minutes) with a practical idea to help your business grow. 

I’ve also included the written version if you prefer to read it.  

Give it a go – and make every minute count! 

Today’s video provides food for thought around what it actually costs an Adviser to do administrative tasks that could be done by someone else.    

MAKE IT COUNT – PRACTICAL POINTERS TO GROW YOUR BUSINESS IN ONLY MINUTES 

Is it really easy for you to put together a Statement of Advice?  

Is it really quick for you to do the data entry after client appointment, or do the basic admin that’s required when you’re implementing the advice and recommendations?  

Well, for a lot of Advisers they say “yeah, it’s easy and it’s quick and it’s much cheaper than getting someone else to do it.   

Well here’s the thing. Let’s just say that your time is worth around about $300 or $400 an hour.  

Now, firstly I am being conservative in saying that.  

Secondly, I said it’s worth that, it doesn’t mean that that’s what you’re charging your clients.   

However, for this example let’s assume it’s about $300 or $400.  

And just say it takes you about 5 to 8 hours to put together a Statement of Advice, because you can do it quicker and better than anybody else (???).   

Then that is $300 to $400 per hour for 5 to 8 hours of you doing a Statement of Advice.  

And I know you’re really good at it and you probably think you can do it better and cheaper than anyone else.   

But you got to admit there’s someone out there who could do it for a lot cheaper than $300 or $400  an hour.   

So, it’s actually costing you money.   

So, if you calculate how long it actually takes you based on an hourly rate of around about $300 or $400, guaranteed that it turns out a very very expensive financial Statement of Advice and one that could be done elsewhere much cheaper.  

And here’s the thing that’s just the financial cost, I didn’t even mention the opportunity cost.  

So that is what else you could be doing with that time instead of sitting down writing a Statement of Advice?  

And when you put the financial cost and the opportunity cost together, like I said, that makes a very very expensive administration in your business.  

So, this is one of those little tips where I really want to just think about and reflect on; Are the activities that I’m doing the best use of my time, of my skill, of my expertise, and are these activities ones that are moving my business forward?  

Or could someone else potentially do these activities, to a reasonable standard, at a much cheaper and more effective rate?   

So, you’re running a business and I’m assuming you’re doing it so you don’t just break even.   

You want to make a profit and you want to make a bigger difference in more peoples’ lives, then you need to be aware of what some of these administrative activities are costing and make sure they’re allocated to the most appropriate resource, which is probably not the financial adviser.  

Okay, so whatever you do with that, Make It Count. 

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