BETTE R BUSI N ESS
March 2021
PLANNING AN EXIT?
DON'T FORGET YOUR MARKETING
Many financial planning firms will admit that marketing is one area that doesn’t always get the attention it deserves. Faith Liversedge highlights why marketing is not just a client acquisition tool and new business driver but an important driver of the future success of your business
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hen you think of marketing (if you ever think of marketing) and you’re not thinking of Mad Men, well, you probably think of new business.
Lead generation, referral generation, content marketing, digital marketing; at the end of the day when it’s all said and done, the aim of successful marketing is to bring in new clients, is it not? No, not always. Every day I speak to advisers and adviser firms who are actually fairly comfortable with the size of their existing client banks. I would say they’re in a ‘maintenance phase’ not a ‘growth phase’. Perhaps they’d like a handful of new clients a year, but they’re not looking for performance marketing that’s driving any real, consistent growth. Typically, these are lifestyle businesses, and the directors are eyeing a potential exit in the not-too-distant future. There is nothing wrong with that. Everyone with a lifestyle business fancies a nice exit to sip Kir Royales on the French riviera at some point, myself included.
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And If you’re in that enviable position, it’s easy to think that you don’t need to have your marketing in tip-top order, or perhaps engage in any marketing activities at all. I’d encourage you to think again… ACQUIRERS ARE BECOMING MORE AND MORE SELECTIVE In my recent guide to intergenerational wealth transfer, I wrote about how acquirers are increasingly scrutinizing client banks, taking into account the average age, the likelihood of the firm retaining family wealth etc. Overall, however, the key thing they’re looking for is engaged clients. How much contact do these clients have with their adviser? How much consistent value is being provided? Does that justify ongoing fees and are they likely to jump ship? When an adviser or firm has consistent, high-quality communication with their clients, this takes away so many worries at the point of an exit.
I FAmagazine.com
