- Disagree (51%)
- Agree (36%)
- Not sure (13%)
A mixed result in our latest poll suggests a general lack of optimism resides in the thinking of many advice businesses as we head into 2023.
As we go to press, around half of those voting in our last poll for 2022 (48%) do not believe their advice business will be in better financial shape one year from now. Only one in three (33%) think the opposite, while the remainder, around one in five (18%) are unsure.
…it’s not just normal market forces which are having such an impact
The lack of agreement on this question seems to reflect – at least in part – the differing commercial outcomes being experienced by advisers and advice businesses during 2022. While normal market forces dictate that differing commercial outcomes between businesses will always apply, one of the more sobering elements associated with this poll is that it’s not just normal market forces which are having such an impact on a significant number of advisers and advice businesses.
While elements such as marketing, changing consumer attitudes, technology developments, economies of scale, reasoned business models, business location and competition all impact and feed in to the ultimate success or failure of a business enterprise, it’s unfortunate that for financial advice business propositions in Australia that other factors – other elements also come into play. These elements – as we mentioned din last week’s opening poll commentary, include:
- Current regulatory burdens
- Complexities associated with delivering affordable advice solutions
While all advice businesses are confronted with these same additional challenges – and while some have manage these challenges better than others – these extra factors have surely contributed to the outcome of this poll at its half-way mark.
If you’ve yet to gaze into your crystal ball, we’d welcome your thoughts as the whole advice sector looks ahead to arriving at a point at which it’s only those ‘usual’ market forces with which advisers and advice businesses must contend…
