Applied Financial Planning

Leveraging expertise to expand your value proposition

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This paper comprises an excerpt from Fortnum Private Wealth's The inevitable advice journey: Where professional advisory firms are set to land report.

The report claimed the majority of advice businesses are not yet achieving their full potential and are vulnerable, despite having a compelling value proposition and robust systems and processes, because they are not scalable and lack a clear strategy to get to scale.

The report also identified the critical ingredients needed to build an advice business of significant economic value, and outlined the path advisers need to take to bulk up, reduce their vulnerability to external shocks and significantly enhance their capital value.

Considerations for a better value proposition

No matter how compelling and competitive a business's value proposition, it will still need support to ensure the efficient, if not excellent, execution of that service. Here are some key observations.

A compelling value proposition is the cornerstone of business success.

When evolving your value proposition, there are two critical aspects to consider.

  1. Share of wallet - the broader your value proposition, the greater relevance your service has to a client.
  2. Depth of value - value cannot be superficial. It must be supported by evidence of capability, continuous improvement and superior outcomes.
Where both these elements exist, businesses perform strongly.

Not only do advisers need to articulate and demonstrate the value they deliver to clients, they must also be prepared to prove the effectiveness of their philosophy, processes and systems if requested by the regulator.