Financial Professional Use Only Not for Distribution to
Financial Professional Use Only / Not for Distribution to the Public
Bank of America Corporation (“Bank of America”) is a financial holding company that, through its subsidiaries and affiliated companies, provides banking and investment products and other financial services. Merrill Lynch, Pierce, Fenner & Smith Incorporated is a wholly-owned subsidiary of Bank of America Corporation, and a registered broker-dealer and member of FINRA and SIPC. Investment products provided by Merrill Lynch, Pierce, Fenner & Smith, Incorporated: Are Not FDIC Insured Are Not Bank Guaranteed May Lose Value The views and opinions expressed in this presentation are not necessarily those of Bank of America Corporation; Merrill Lynch, Pierce, Fenner & Smith Incorporated; or any affiliates. Nothing discussed or suggested in these materials should be construed as permission to supersede or circumvent any Bank of America, Merrill Lynch, Pierce, Fenner & Smith Incorporated policies, procedures, rules, and guidelines. Merrill Lynch, Pierce, Fenner & Smith Incorporated are not tax or legal advisors. Clients should consult a personal tax or legal advisor prior to making any tax or legal related investment decisions.
Understanding Financial Markets Investment Concepts Client Management Business Development Professional Development “An investment in knowledge, always pays the best interest. ” -Benjamin Franklin For more information on the Academy and its programs, please contact Franklin Templeton Sales and Marketing Services at (800) 223 -2141. Financial Professional Use Only / Not for Distribution to the Public
Effective Planning to Help Grow Your Business Developing Your Business Plan Financial Professional Use Only / Not for Distribution to the Public
4 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. Financial Professional Use Only / Not for Distribution to the Public
5 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. Financial Professional Use Only / Not for Distribution to the Public
6 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 Financial Professional Use Only / Not for Distribution to the Public
7 Course Overview Agenda: 1 Initial tasks 2 Goal and action planning 3 Execution and progress Financial Professional Use Only / Not for Distribution to the Public
8 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? Financial Professional Use Only / Not for Distribution to the Public
9 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. Financial Professional Use Only / Not for Distribution to the Public
10 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. ” Financial Professional Use Only / Not for Distribution to the Public
11 Mission Statement Provide personalized service so effective that financial advisors will choose Franklin Templeton Investments as their primary business partner. Financial Professional Use Only / Not for Distribution to the Public
12 Mission Statement – Merrill Lynch places our client relationships first and is proud to conduct our business based on five unwavering principles: client focus, respect for the individual, team work, responsible citizenship and integrity. Financial Professional Use Only / Not for Distribution to the Public
13 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. ” Financial Professional Use Only / Not for Distribution to the Public
14 Review Last Year’s Results SALES RESULTS • Sales goals • Actual sales • % Change PRODUCT MIX • Mutual funds • Annuities • Other 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? Financial Professional Use Only / Not for Distribution to the Public
15 Review Last Year’s Activities ASK SPECIFIC QUESTIONS LIKE: • 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? Financial Professional Use Only / Not for Distribution to the Public
16 Put Your Practice to the SWOT Test STRENGTHS WEAKNESSES OPPORTUNITIE S THREATS Financial Professional Use Only / Not for Distribution to the Public
17 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 strongest skills? Financial Professional Use Only / Not for Distribution to the Public
18 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 want to see? • Are your products and services comparable to your competitors? • What are your clients likely to see as weaknesses? • What advantages do your competitors have over you? Financial Professional Use Only / Not for Distribution to the Public
19 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? Financial Professional Use Only / Not for Distribution to the Public
20 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 challenges does your practice face? • Do your weaknesses expose you to any threats? • What are your competitors doing successfully in your marketplace? Financial Professional Use Only / Not for Distribution to the Public
21 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 are many layoffs occurring locally, and my strength is retirement planning Financial Professional Use Only / Not for Distribution to the Public
22 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 Financial Professional Use Only / Not for Distribution to the Public
23 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—wholesalers are a good resource Focus on: • Sales activities • Marketing activities Financial Professional Use Only / Not for Distribution to the Public
24 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. Financial Professional Use Only / Not for Distribution to the Public
25 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 Financial Professional Use Only / Not for Distribution to the Public
26 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. Financial Professional Use Only / Not for Distribution to the Public
27 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 mobile device or Outlook calendar Financial Professional Use Only / Not for Distribution to the Public
28 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 Financial Professional Use Only / Not for Distribution to the Public Easily add your information
29 Start Your Business Plan Today! Financial Professional Use Only / Not for Distribution to the Public
Franklin Templeton Distributors, Inc. One Franklin Parkway San Mateo, California 94403 -1906 franklintempleton. com Financial Professional Use Only / Not for Distribution to the Public ML Control# 16 -004274
- Slides: 31