More than enough to go around
There are around 128,000* practising solicitors and 119,000* chartered accountants in the UK. Latest estimates highlight that there are around 22,000* individuals registered with the Financial Services Authority to offer whole-of-market financial advice. So I would say that for financial advisers, there are enough potential alliances with solicitors and accountants for you all.
So why do so many find it so difficult to make these connections successfully?
Our research has highlighted seven barriers to success. Let’s see how we can overcome them.
- Negative perception – Some still view advisers as commission-hungry sales people. The RDR drive towards professionalism should help overcome this.
- Lack of confidence – As we define our propositions and gain our RDR qualifications, we should all gain the confidence to relate to and interact with solicitors and accountants as equals.
- Profitability worries – Many firms suffer from having too many clients who cost them time and money. Why would any firm want more of these referred from a solicitor or an accountant? A key stage of any professional connection is being clear on the clients you want to attract, the markets you’ll be involved in and the solutions and services you’ll provide. If you communicate a clear customer proposition to new relationships, over time you’ll see a steady flow of the right type of profitable clients.
- Low priority – Time is a precious concept and day-to-day activity sometimes takes precedence over business development. I would urge you all to consider how you can evolve your business model to allow a greater integration with solicitors and accountants. Time invested now could increase revenue and maximise profits in the future.
- Feeling out of practice – You’ve had business relationships that have failed or perhaps gone not quite as you’d hoped. Reflect and identify what went wrong and never repeat the mistakes of the past.
- Low collaboration – Solicitors by their very nature are transactional, and while accountants have a more holistic approach, how many are experts on all aspects of their clients’ financial needs? You need to coach them into reviewing these needs, which then opens up opportunities for you and your business.
- No plan – the biggest barrier is not having a plan. Communication is key and any long-term activity needs a plan. Our business planning area can help you get started.
John Joe McGinley, Business Consultancy Manager
July 2010
*Source: JP Morgan Professional connections: Creating opportunities between IFAs and other advisory professionals.