4 areas growing practices can focus on in 2024

Running a successful advice practice goes well beyond providing advice. Building a well-rounded business means strengthening those areas that you may have overlooked, particularly if you are looking to scale.

While business growth has been front of mind for most advice businesses in recent years, significant regulatory changes, increased compliance, and education requirements forced some practices to put their growth plans on hold.

But 2023 was a turning point for the profession with the return of some stability. This is best illustrated in the fact that only 177 advisers left the industry in 2023, a significant improvement from the 1,374 that left in 2022 and 3,456 in 2021.

The great news is that 381 new advisers entered the industry last year, injecting some fresh energy into the profession and giving practices a significant pool of emerging talent to consider as they map out their growth plans. We believe now is the ideal time to be considering your goals for 2024.

With more advisers joining the industry than leaving, the tables are slowly beginning to turn in favour of practices on the lookout for new recruits.

With this in mind, we recently launched CFS 10X to give growth-minded advice businesses the tools they need to meet their goals. There are four key areas that we believe will become important pillars for practices looking to overcome challenges and achieve growth.

1. Your business

There are some great solutions available to advisers looking to grow their business in 2024. Leveraging analytics and peer analysis can help you better understand what your business looks like now and where future opportunities lie.

Research from the McKinsey Global Institute found that data-driven firms are 23 times more likely to acquire customers, six times as likely to retain customers, and 19 times as likely to be profitable.

2. Your people

Sir Richard Branson famously said that “Success in business is all about people – take care of them and they will take care of business.”

Your people are your greatest asset. As small business owners or managers, practice principals know too well the challenges of attracting and retaining talent to build a team of engaged, high-performing professionals, particularly with a shrinking talent pool.

As your business grows, your approach to people management, development and culture become important ingredients of success.

We believe we can add value to practices by helping them build technical knowledge within their teams, developing the confidence and capability of support staff and professional year advisers and sharing practice management insights and efficiencies.

3. Your clients

Your clients are your best advertisement. How they experience you and your business will determine their willingness to recommend you to others.

However, the fact remains that most Australians have never received financial advice. They are unaware of its benefits. Only those who have received advice really understand what it has done for them. Put simply, advised Australians are the best advocates for advice.

Earlier this year, we released our Empowered Australian report, which explores the experiences of advised and unadvised consumers. The findings of that study provide valuable insights into consumer behaviours, perceptions and aspirations around superannuation, retirement, and financial advice.

4. Your expertise

As an advice professional, staying up to date with technical knowledge and strategic understanding is essential. However, cutting through the complexity of Australia’s super and retirement system can be challenging. Particularly as new reforms roll out.

Advisers will have greater clarity once the government’s advice reforms are legislated. This will also unlock new opportunities for advisers to provide affordable solutions to their clients.

We welcome the government’s decision to broaden the range of advice topics that can be paid for using super. Our own research shows that three in five Australians are interested in paying for your services in this way.

Jackie Clark is the national education manager at Colonial First State.