{"id":4096,"date":"2010-07-04T13:00:36","date_gmt":"2010-07-04T03:00:36","guid":{"rendered":"https:\/\/riskinfo.com.au\/news\/?p=4096"},"modified":"2020-02-06T08:11:06","modified_gmt":"2020-02-05T21:11:06","slug":"many-advice-practices-failing-to-plan","status":"publish","type":"post","link":"https:\/\/riskinfo.com.au\/news\/2010\/07\/04\/many-advice-practices-failing-to-plan\/","title":{"rendered":"Many Advice Practices Failing to Plan"},"content":{"rendered":"<p>Only just over\u00a0half of all advice practices in Australia\u00a0maintain a properly documented business plan and even less actually implement those plans, according to\u00a0practice management group, <a href=\"http:\/\/www.businesshealth.com.au\/content\/\" target=\"_blank\" rel=\"noopener noreferrer\">Business Health<\/a>.<\/p>\n<p><!--more-->Based on data\u00a0contained in Business Health&#8217;s\u00a0Future Ready IV Report, released late last year,\u00a057% of advice practices say they\u00a0have a properly documented business plan.\u00a0 This figure is up from 53% the previous year, but the firm says it is somewhat surprised by the fact that still only 57% now have a proper plan, given the upheavals in the Australian economy and the financial services industry over the last two years.<\/p>\n<p>\u00a0\u00a0According to Business Health, :<\/p>\n<ul>\n<li>57% of\u00a0practices hold a properly-documented plan to develop and grow their business<\/li>\n<li>29% of practices have only a partially developed business plan<\/li>\n<li>An alarming 14% of all advice practices in Australia have no documented business plan<\/li>\n<\/ul>\n<h6>&#8230; there is a direct link between the quality of a practice&#8217;s business plan and its profitability<\/h6>\n<p>Further details provided by Business Health indicate there is\u00a0a direct link between the quality of a practice&#8217;s business plan and its profitability.<\/p>\n<p>The firm reveals\u00a0the average annual profit per principal in a practice that maintains and implements a documented business plan is $437,728.\u00a0 There is a stark comparison between this number and the average annual profit per principal in\u00a0those practices where\u00a0a documented business plan\u00a0 is only partially implemented ($279,966) or does not exist at all ($189,743).<\/p>\n<p>The clear message from Business Health is that all advice practices need a properly documented and implemented business plan in order to optimise its profitability.<\/p>\n<p>Business Health Director, <strong>Ray Henderson<\/strong>, told riskinfo that\u00a0the financial &#8216;health&#8217; of an advice practice is reflected in how well the practice implements its key value drivers, such as\u00a0the documented business plan.<\/p>\n<p>\u00a0Other\u00a0key value drivers within the Business Health approach to operating successful advice practices include:<\/p>\n<ul>\n<li>Quality of the practice&#8217;s client management systems<\/li>\n<li>Use of the office &#8211; proportion of client meetings held on-site<\/li>\n<li>Effectiveness of client segmentation<\/li>\n<li>Review processes<\/li>\n<li>Ability to receive &#8216;honest&#8217; client feedback<\/li>\n<li>Frequency of contact with &#8216;A&#8217; class clients<\/li>\n<li>Succession planning<\/li>\n<li>Accessing external advice<\/li>\n<li>Media management<\/li>\n<li>People management<\/li>\n<\/ul>\n<p>Mr Henderson said that unlike many other consulting firms, the approach from Business Health is one that addresses the qualitative elements of advice practices rather than the quantitative factors.<\/p>\n<p>In all, Business Health consults\u00a0on 32 specific areas of an advice practice&#8217;s operations, adding value by assisting the practice understand what issues need to be addressed, and how to address them.<\/p>\n<p>While it\u00a0may sometimes be daunting to\u00a0the practice principal to identify where or how to commence a review of their business, Mr\u00a0Henderson told riskinfo that &#8220;We&#8217;ve spent years making the complicated simple.&#8221;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Only just over\u00a0half of all advice practices in Australia\u00a0maintain a properly documented business plan and even less actually implement those plans, according to\u00a0practice management group, Business Health.<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3,5],"tags":[],"class_list":["post-4096","post","type-post","status-publish","format-standard","category-general","category-services"],"_links":{"self":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/4096","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/comments?post=4096"}],"version-history":[{"count":0,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/4096\/revisions"}],"wp:attachment":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media?parent=4096"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/categories?post=4096"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/tags?post=4096"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}