{"id":6579,"date":"2010-06-08T11:40:39","date_gmt":"2010-06-08T01:40:39","guid":{"rendered":"https:\/\/riskinfo.com.au\/news\/?p=6579"},"modified":"2020-05-29T12:53:17","modified_gmt":"2020-05-29T01:53:17","slug":"how-much-should-an-advice-practice-grow","status":"publish","type":"post","link":"https:\/\/riskinfo.com.au\/news\/2010\/06\/08\/how-much-should-an-advice-practice-grow\/","title":{"rendered":"How Far Should an Advice Practice Grow?"},"content":{"rendered":"<p>Advisers should\u00a0consider the benefits, but also\u00a0the\u00a0disadvantages that may be associated with increasing the size of their\u00a0practice, according to an industry consultant.<\/p>\n<p><!--more-->In the June 2010 edition of\u00a0<a href=\"http:\/\/advicecc.com.au\/\" target=\"_blank\" rel=\"noopener noreferrer\">Advice Centre Consulting&#8217;s<\/a> <em>Growth Focus Monthly <\/em>publication, the firm&#8217;s Principal, <strong>David Fox<\/strong>, says he has regular discussions with business owners that revolve around the optimum size their practice should be targeting.<\/p>\n<p>While there may be obvious benefits that\u00a0go with\u00a0increased size, such as higher revenue and growing profits, Mr Fox cautions advisers to carefully consider the &#8216;trade offs&#8217;.<\/p>\n<p>According to Mr Fox, the positive aspects of maintaining a smaller practice include:<\/p>\n<ul>\n<li>Retention of control over the operation of the practice<\/li>\n<li>Less &#8216;people&#8217; issues<\/li>\n<li>Less stress and better lifestyle<\/li>\n<li>Maintaining a personal service culture<\/li>\n<\/ul>\n<p>On the other hand, Mr Fox outlines the downsides potentially associated with maintaining a smaller practice, which include:<\/p>\n<ul>\n<li>Difficulty in attracting and retaining talented people<\/li>\n<li>More demanding clients<\/li>\n<li>Rising costs of operating an advice practice<\/li>\n<li>Business valuation not as attractive to potential buyers<\/li>\n<li>Difficulty with implementing a premium pricing structure<\/li>\n<li>Harder to effectively form and maintain professional alliances<\/li>\n<\/ul>\n<p>Mr Fox believes there is no optimum size for an advice practice, rather that a growth or consolidation strategy will be determined by whichever strategy best aligns with the personal, lifestyle and business objectives of the business owners.<\/p>\n<p>Mr Fox expands on each of these issues, which can be accessed by clicking: <a href=\"http:\/\/advicecc.com.au\/GFM-June-10\/the-trade-offs-for-large-and-small-business-models.html\" target=\"_blank\" rel=\"noopener noreferrer\">The Trade Offs for Large and Small Business Models<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Advisers should\u00a0consider the benefits, but also\u00a0the\u00a0disadvantages that may be associated with increasing the size of their\u00a0practice, according to an industry consultant.<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-6579","post","type-post","status-publish","format-standard","category-general","headers-new"],"_links":{"self":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/6579","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=6579"}],"version-history":[{"count":0,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/6579\/revisions"}],"wp:attachment":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media?parent=6579"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/categories?post=6579"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/tags?post=6579"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}