3 Reasons Your Advisory Firm Needs a Long-Term Mentality

Justin Woods

Author

It’s easy for those of us working in an advisory firm to get stuck in a rut of short-term goal setting, hasty decision making, and poor future planning – especially when so much of our work relates to the market and what it’s currently doing, versus what it could be doing in the next five to ten years. But in order to enable durable success, your firm needs to ditch the short-termism and develop a long-term mentality.

3 Reasons your Firm Needs a Long-Term Mentality:

1. Increases revenue. According to a McKinsey Study, companies with a long-term mentality outperformed their short-term peers on a range of key economic and financial metrics. The companies with a long-term mindset saw a 47% increase in revenue versus those focused solely on short-term performance, and ultimately exhibited a stronger financial performance over time.

2. Helps you stay ahead of the competition. Competition in the financial planning world is fierce. In order to stay ahead of your competitors, a long-term mentality is vital. One thing we know for sure as advisors is that the market is always changing. And with a change in the market, comes a change in consumer behavior, followed by a change in the industry. The more you’re able to forecast those changes and become an early adapter of new technologies, the more of a competitive edge you’ll have over other firms.  

3. Enhances customer experience. As advisors, we want our clients to stay with us year after year, but if you’re only focused on the short-term performance, you’ll never be able to provide them with long-term value. If you’re constantly thinking about what you can do to make their experience better down the road, you’ll establish a client relationship that will not only result in a renewal but also an increase in referrals.

The easiest way to establish those long-term client relationships? Equipping yourself with the technology you need to focus on the long-term value. At Wela, we’ve been working hard to develop Benjamin, a tool that’s helping advisors deepen relationships and create the efficiencies they need to enable long-term, durable success.

Interested in seeing what Benjamin can do for you? Reach out to us here to get started with a free demo.