The Elements

By Andrea Schlapia   |   October 12, 2012

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
  • CPA
  • 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

WHY BOTHER?

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! 

 Follow us as we explore each of Ironstone’s Fundamental 4™!

  • Strategic Planning
  • Business Development
  • Operational Effectiveness
  • The Human Element

Coming up next, Niche Marketing!

 

• Email us at info@ironstonehq.com
• Call our office at 800-917-8020
• Connect with us:


Andrea Schlapia
Organizational Development and Human Capital

Andrea Schlapia, RCC™, HCS, sHRBP, is the Founder and CEO of Ironstone, which represents the culmination of her 20+ year career within the financial services industry. Her experience began as a financial advisor evolving into a consultant coach for advisors entering the field. This ignited her passion to support others through learning and development of best practices in order to achieve substantial results. To this end, she followed her desire into positions of senior-level practice management specialists for Dreyfus, Prudential, and DWS Investments prior to the realization of Ironstone.  Andrea’s focus is on practice management strategies to enhance and improve both business and personal life.

Andrea identifies 4 key performance areas known as the Fundamental 4™, which are required to design, develop, and sustain a successful business. Through coaching sessions and speaking engagements, she captivates her audience with interactive, high-energy presentations which are built with “how-to” strategies resulting in real-world implementation for significant impact. Andrea has been featured in multiple publications and audio broadcasts as a specialist and distinguished spokeswoman in the financial industry.

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Contributors

Andrea Schlapia
Organizational Development and Human Capital
Connie Deianni
Mentoring and Employee Engagement
Guest Blogger
Practice Management
Dr. Heidi Maston
Organizational and Educational Leadership
Joe Kuhns
Strategic Partner
Judith Bowman
Business Protocol
Laura Garfield
Idea Decanter Co-Founder
Marsha Schechtman
Strategic Partner
Mighty 8th Media
Strategic Partner
Nicole Anglace
Special Projects
Ruthann P. Lacey, P.C.
Elder and Special Needs Law
 Scott D. Calhoun
Legal Counsel
Sharon Gottula
Idea Decanter Co-Founder
TailorMade
Strategic Partner
Ironstone
Practice Management
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