Time management. It’s a catchphrase we’ve all heard, and in theory, we all understand what it is. So it should be easy to use our time effectively to grow our business and have the greatest impact possible on our clients. And yet, many of us admit to just not being very good at it.
It makes sense that using your time wisely, spending it on the most important tasks, allows you to maximize your day.
Many of us have also heard that it’s important to work on your business, instead of in your business. At first, this can seem contradictory to your instincts, since we’ve also talked about the value you have inside your practice. As a financial advisor, your value to your clients is your expertise and your ability to have an impact. Which sounds an awful lot like working in your business and not on it.
So, the question remains: When maximum growth is the goal, where should you be spending your time?
The first step to finding the answer is to take stock of what you’re currently spending your time on. So, let’s try an experiment. For the next two weeks, jot down how you spend your time. Each time you complete a task for your business, record it. Write down everything. And then categorize it as either a sales or revenue-generating activity or as a non-revenue-generating activity.
Sales and revenue-generating activities include:
- Client-facing meetings, such as portfolio reviews
- Networking, such as a referral arrangement with a CPA or attorney
- Client acquisition, such as prospecting
Any activity that has the potential for bringing more dollars to your business is a sales or revenue-generating activity. Figure out how many hours you spend each week, and then divide them into your total revenue to find out how much you’re making an hour on these specific activities.
And then do the same for your nonrevenue-generating activities. These include time spent on office management activities like organization and administration.
If you are spending more time on nonrevenue-generating activities, it’s time to make a change.
When administrative tasks turn into a time suck, consider hiring an assistant or another salesperson. And use your freed-up time to reinvest in your business. This means you can start working on your business again, instead of getting weighed down in it.
And, as you evaluate how to spend more time on tasks that directly result in growth, here are a few more points to consider:
- Your current hourly rate for client acquisition, and what you can do to increase it
- How to get more business out of your existing clients
- Offering a wider breadth of products and, in turn, earning more advisory fees
Creating a High Performing Practice isn’t easy, but it’s possible. Take the next few weeks and pay close attention to where your time is spent. I think it will be eye-opening and potentially lead you to a more efficient — and profitable — business. I promise it will be time well spent.
Track your activities for the next two weeks and evaluate the most efficient way to spend your time. Use your results to generate growth.
Recognize the opportunity to transform your business by taking our free course.