Consider, for example, these potential roadblocks, which are top of mind for most financial professionals I talk to around the country:

Staffing. Challenges include affording technical experts or those with expertise, having sufficient staff and hiring people who share your vision.
Pricing. Knowing how to price and transitioning to a fee-based model are common concerns.
Differentiating. What differentiates you from your competition? How do you articulate your value?
Balancing growth. How do you manage your business when it's constantly changing? How do you find the "right" clients for your practice and manage revenue?

These are all tough challenges, but you can possibly overcome them with these five steps:

Review your service model and working relationships. You may have a goal to grow your business, but as you look at your service model, do you actually have the resources to service more plans? Take a good look at the value added services available from the providers with whom you work. Are you taking full advantage of what they can do to help you? You don't have to have expertise in everything, after all. Find service providers who can be part of your team, offering resources to help fill in the gaps you may have in staffing. The lone ranger loses.
Define your value proposition and write it down. A good way to start is by evaluating your block of business to identify a common theme. Ask some of your clients, "How would you define what we do for you?" The responses and your own beliefs about your differentiators can help you create a unique value statement.
Create a written marketing plan for the year. As the saying goes, failing to plan is planning to fail. Yet many financial professionals don't have a plan for getting their name out in the marketplace. Build your messaging around your value proposition. Check your firm's social media guidelines and if possible be sure to include social media.
Feed and nurture your referral network. Start by identifying and ranking your centers of influence. Do you have a large enough network of current and potential referral sources? What could you do to improve existing relationships and add others? Develop an action plan outlining which centers of influence you want to strengthen this year and which gaps you want to fill.
Is your practice ready for retirement readiness? The industry has moved to focusing on outcomes—how well plans are preparing participants for retirement. As service providers add tools and resources, where do you fit in? The industry is focused on plan design and education to help improve the savings rate but what role do financial professionals play? Do you have a retirement income replacement rate strategy? Are you comfortable offering plan design suggestions? Do you have a participant education strategy? Do you have the tools and resources to start a retirement readiness conversation with your clients? Once again, check with those you team with, such as service providers and third party administrators. They may have the resources you need to conduct retirement program assessments and consult on plan design changes.

If you'd like to get more ideas on building and managing your business, consider joining an upcoming live Twitter conversation for financial professionals on practice management. #AdvisorTalk will be held Wednesday, January 30, at 3:00 p.m. central at www.twitter.com/#advisortalk.

Instant Insights /

5 steps to building your advisor business in 2013

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