Adjusted Earnings


The pandemic has showed us several items in our business and our economy that need to be improved. This week we will share components that need to be reduced and several new ideas we should add with the money we save. Cuts and changes are never easy but we will offset the cost savings with an equal amount of new professionals. Take a deep breath because none of our cost cutting ideas will be the from the founders. Hopefully, our recommendations will allow us all to make more after we have a vaccine. 




Experts

The complexity of a credible wealth advisory solution requires numerous experts.  Historically we have outsourced this need and created a “my client” argument.  The top independent firms have all of the experts under one roof.  Many experts are being pushed out of their current firms and are looking for a new team.  Our industry has  experienced professionals being displaced in the accounting and brokerage businesses before.  The next experts we need to add are therapists and T&E attorneys.  Both have the domain expertise but are lacking in new business development.  The current group at your firm can help and nobody has to take a test or go back to school.




Office Space

Many of us have enjoyed working from home and don’t want to rush back to the office.  If that concern is shared by others, we can start looking at smaller offices to save money. Our new offices will also make it easier to meet health requirements.  We can complement our new office with guest offices and larger meeting rooms.  This structure will allow colleagues who work from home to come to the office as well.  


Fee Schedule 

Our new structure can also support an improved fee structure.  Since our services have evolved from picking stocks and with the addition of our new experts, a subscription fee could replace our AUM fee.  This is a big change that will save us and most of our clients money.  My opinion is that we have not made the change because it costs the professionals who provided “portfolio management” too much money.  Most firms were founded by “portfolio mangers”.   We need to make these changes before someone else makes them for us.  


Our earnings adjustments will happen.  We need to make sure we are in control and that COVID-19 doesn’t win and we are telling the truth.

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