Hit the Nail On the Head When Constructing Your Business Model
Categories: Blog, Business Model, Strategic Planning
Constructing a business model should be a vital part of your firms overall business strategy; describing the core aspects of your firm, including services, purpose, organizational structure, operational processes/policies and your strategies.
As the financial services industry has evolved over the years, business models available to financial advisors have changed and expanded. You will want to make certain your business model:
- Remains as a solid foundation by revising and expanding the structures and systems
- Incorporates new services and resources available to create value for your clients
Without an updated business model, it will be challenging to move forward, reach goals and experience firm growth. Top advisors are seeking to change their existing business models from firm driven to client driven by providing a holistic model. Advisors who have implemented the holistic business model are able to position themselves as a trusted advisor rather than a transaction-based sales person.
Your business model should describe how your firm plans to generate revenue
and profits while detailing the core aspects listed above.
High net worth clients are searching for a trusted advisor that is able to provide multiple products and services under one roof.
Providing results for your clients should be a key factor when constructing your business model. Clients are in search of an advisor who will:
- Make smart decisions with their money
- Assist in mitigating taxes
- Take care of their heirs
- Ensure gifts are charitable
In addition, advisors who provide some or all of the following services will stand far above the competition and can promote a proactive working relationship with at least a few of the following professionals:
- Tax Attorney
- Insurance Agent
- 401k Retirement Consultant
- Estate Planning Attorney
- Health Insurance Representative
When the overall financial plan is coordinated, you have added value for your clients. Your clients are able to:
- Reduce their fees
- Feel clearly organized
- Place their trust in you and your firm
Ever heard the song, “The Wise Man Built His House Upon a Rock”? The lesson of this song is just as true in the business world as it is in construction. If you want to run an effective profitable practice, you need to build on a solid foundation and function within a framework that is based on your goals.
The words to that childhood tune also say that the foolish man built his house on sand—without a foundation—and when the storms come, the house crashes down. In the same way, a business without structure will likely crumble when faced with challenges.
Don’t be like the foolish man! By taking advantage of systems and
structures, you can lead your practice toward success.
There is not a one-size-fits-all solution for every firm. Ironstone works with highly successful firms operating with different business models. Design your business model considering your goals and objectives along with the structures, systems and elements that will serve as your foundation.
Contact Ironstone for help in preparing your Business Model
We will provide you with a comprehensive plan in developing or updating your business model. Choosing the best business model for your firm is not an easy task. We will assist you every step of the way by identifying any gaps in your existing model and providing focus on proper infrastructure, market positions, client product and service mix, value-add and how to put it all together!
We are curious – what changes have you made to your business model recently? What changes need to be made to your existing business model? Let us know!
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- Strategic Planning
- Business Development
- Operational Effectiveness
- The Human Element
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