Dealer Use Only Not for Distribution to the
Dealer Use Only / Not for Distribution to the Public
Developing Your Business Plan Effective Planning to Help Grow Your Business Dealer Use Only / Not for Distribution to the Public
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3 As of December 31, 2013. Dealer Use Only / Not for Distribution to the Public
DEVELOPING YOUR BUSINESS PLAN How Would You Answer These Questions? • Has your business been growing at the rate you want? • Do you know what you want to accomplish this year? • Do you know where you want your business to be in five years? If you answered “no” to any of these questions, it may be that you’re too busy to plan for the future of your business. Dealer Use Only / Not for Distribution to the Public 4
DEVELOPING YOUR BUSINESS PLAN Do You Have Time to Grow Your Business? Time Allocation 1 Financial advisors must spend a significant amount of time servicing clients, making it difficult to grow their business. 1. Source: Cerulli Associates, The Cerulli Edge First Quarter 2005. Dealer Use Only / Not for Distribution to the Public 5
DEVELOPING YOUR BUSINESS PLAN A Business Plan Can Help You Focus on Growing Your Business A Written Plan Provides You with an Opportunity to: 1. Evaluate the state of the industry and your niche within it 2. Clarify your goals and objectives 3. Identify the strengths and weaknesses of your business 4. Develop a strategy for achieving your goals 5. Plan how to execute your strategy 6. Measure your achievements throughout the year to stay on track Dealer Use Only / Not for Distribution to the Public 6
DEVELOPING YOUR BUSINESS PLAN Agenda • Initial tasks • Goal and action planning • Execution and progress Dealer Use Only / Not for Distribution to the Public 7
DEVELOPING YOUR BUSINESS PLAN Mission Statement Benefits: Provides Focus and Motivation A mission statement answers: • What is my ultimate business goal? • What is the primary focus of my business? • Which clients do I want to attract to meet my goal? Dealer Use Only / Not for Distribution to the Public 8
DEVELOPING YOUR BUSINESS PLAN Mission Statement Client Segmentation “…client base segmentation is a key component of growing a profitable practice. ” 1 Sample Statements • I focus on highly compensated individuals who work in, or have retired from, technology fields to help them meet their financial goals. • I focus on helping families plan for their educational and retirement needs. 1. Source: Cerulli Associates, The Cerulli Edge, First Quarter 2005. Dealer Use Only / Not for Distribution to the Public 9
DEVELOPING YOUR BUSINESS PLAN Mission Statement • Who you are – Company name – Values that guide your daily decisions • Where you want to go – Market you wish to target – Where you want to be in five to ten years • How you plan to get there – Customer needs your company will meet • Why you need to do it – “If the WHY is important enough, then no HOW is too difficult. ” Source: The Entrepreneure’s Guidebook Series Copyright 2001. Dealer Use Only / Not for Distribution to the Public 10
DEVELOPING YOUR BUSINESS PLAN Mission Statement Provide personalized sales support so effective that Canadian financial advisors will choose Franklin Templeton Investments as their primary business partner. Dealer Use Only / Not for Distribution to the Public 11
DEVELOPING YOUR BUSINESS PLAN Mission Statement “These are the voyages of the Starship Enterprise. It’s five-year mission, to seek out new worlds and new life. To boldly go where no one has gone before. ” Dealer Use Only / Not for Distribution to the Public 12
13 DEVELOPING YOUR BUSINESS PLAN Review Last Year’s Results SALES RESULTS • Sales goals • Actual sales • % Change PRODUCT MIX • Mutual funds • Stocks and bonds • Segregated Funds INCOME SOURCES • Commissions • Fees • Trails SALES & MARKETING EFFORTS • Direct mail • Seminars • Referrals • Did you accomplish your goals? • Which strategies worked and which did not? • What can you change to improve your competitive position? Dealer Use Only / Not for Distribution to the Public
DEVELOPING YOUR BUSINESS PLAN Review Last Year’s Activities Ask specific questions, such as: • How many accounts did you open? • How many touches did it take to get a new client? • What was the average size of a new account? • How did you find your new clients? • How many clients did you lose and why did they leave? • Do you have a client retention plan in your business? Dealer Use Only / Not for Distribution to the Public 14
15 DEVELOPING YOUR BUSINESS PLAN Put Your Practice to the SWOT Test STRENGTHS WEAKNESSES OPPORTUNITIE S THREATS Dealer Use Only / Not for Distribution to the Public
DEVELOPING YOUR BUSINESS PLAN Start Your SWOT Analysis STRENGTHS = Skills, resources, capabilities • What are things you do well? • What makes you unique? • Are there attributes that give you an edge in a niche market? • Do you have a focus on a particular service or product? • What are your team’s strongest skills? Dealer Use Only / Not for Distribution to the Public 16
DEVELOPING YOUR BUSINESS PLAN Using the SWOT Analysis WEAKNESSES = Negative qualities or circumstances • Does your practice lack key skills important to your target market? • Are you missing the credentials clients and prospects want to see? • Are your products and services comparable to your competitors? • What are your clients and prospects likely to see as weaknesses? • What advantages do your competitors have over you? Dealer Use Only / Not for Distribution to the Public 17
DEVELOPING YOUR BUSINESS PLAN Using the SWOT Analysis OPPORTUNITIES = Potential areas to pursue • Do you have strengths that you are not fully capitalizing on? • Are there trends that will affect your services or products? • Are there changes in the local market, such as layoffs or a new business opening? • Are there new financial products you may want to offer? • What advantages do you have over your competitors? Dealer Use Only / Not for Distribution to the Public 18
DEVELOPING YOUR BUSINESS PLAN Using the SWOT Analysis THREATS = Areas vulnerable to competition • Are there trends that are eroding your client base? • Is your business not providing the level of service that clients expect? • What are the key challenges facing your business this year? • Do your weaknesses expose you to any threats? • What are your competitors doing successfully in your marketplace? Dealer Use Only / Not for Distribution to the Public 19
20 DEVELOPING YOUR BUSINESS PLAN Sample SWOT Analysis STRENGTHS WEAKNESSES • I’m very good at building relationships and networking • My referral business is non-existent • My language skills have created a strong niche • I have no business or marketing plans • My customer service is top notch • My competitors offer more services OPPORTUNITIES THREATS • My networking skills can be used to their fullest potential • There are more competitors available in my marketplace • My niche market is an opportunity to grow referral business • I’m having problems growing my business • There is an influx of Boomer retirees and my strength is retirement planning Dealer Use Only / Not for Distribution to the Public
21 DEVELOPING YOUR BUSINESS PLAN Set Goals for This Year • Performance–Set an annual sales goal, up to five years for longer-term planning • Activity–Have a direct effect on sales • Professional Development–Get what you need to perform at your best “A goal without a plan is just a wish. ” — Antoine de Saint-Exupery, French Writer Dealer Use Only / Not for Distribution to the Public
DEVELOPING YOUR BUSINESS PLAN Create a Plan of Action • Define the activities needed to reach your goals • Describe actions you plan to take to build your business • Access your business partners for ideas Focus on: • Sales activities • Marketing activities Dealer Use Only / Not for Distribution to the Public 22
DEVELOPING YOUR BUSINESS PLAN Sales Activities Sources of New Clients 1 • Determine your daily, weekly and monthly activities • Take a disciplined approach 1. Source: Cerulli Associates, The Cerulli Edge First Quarter 2005. Dealer Use Only / Not for Distribution to the Public 23
DEVELOPING YOUR BUSINESS PLAN Marketing Plan Many successful producers have business and marketing plans. With today’s financial advisors having access to similar research, products and services, a primary differentiator is marketing. • Be sure to set aside time for marketing activities Dealer Use Only / Not for Distribution to the Public 24
DEVELOPING YOUR BUSINESS PLAN Importance of Plan Execution The key to success is acting on your plan—whether it’s your business plan or your client’s investment plan. Dealer Use Only / Not for Distribution to the Public 25
DEVELOPING YOUR BUSINESS PLAN Review Progress Quarterly At each quarter-end: • Take time to review your progress • Use the goals in your plan as a benchmark to determine what has worked and what hasn’t, and modify your plan accordingly TIP • Set reminders on your PDA or Outlook calendar Dealer Use Only / Not for Distribution to the Public 26
27 DEVELOPING YOUR BUSINESS PLAN Business Plan Template An easy-to-use template has been created by Franklin Templeton to help you develop your custom business plan Predetermine d areas of focus FPO Dealer Use Only / Not for Distribution to the Public Easily add your information
DEVELOPING YOUR BUSINESS PLAN Start Your Business Plan Today! Dealer Use Only / Not for Distribution to the Public 28
Franklin Templeton Investments Corp. 5000 Yonge Street, Suite 900 Toronto, ON M 2 N 0 A 7 Tel: (800) 387 -0830 Fax: (416) 364 -1163 franklintempleton. ca © 2013 Franklin Templeton Investments Corp. All rights reserved. Dealer Use Only / Not for Distribution to the Public FTAC BPPTE 12130713 FTAC BPPTE
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