The Elements Ironstone Blog

Current news and trending topics for sales and financial industry professionals


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Mountain or Molehill? How Do You Build Your Strategic Alliances?

Building and maintaining strategic alliance’s does not need to be viewed as a mountain that can’t be climbed Choose to climb the molehill instead and you will put the process of strategic alliance planning into proper perspective.  This is not to say that developing and reviewing your plan won’t take a lot of hard work and preparation; all relationships do.   Building your strategic alliances and/or partners is the same.

We have found that most advisors have not taken the time to invest in building strategic alliances, much less start to develop a plan.  Yet, those that build alliances generate higher revenues and profits.   It only takes a small number of strategic partners to have a positive impact within your firm.  

In our blog, Strategic Alliances Build A Foundation For Long-Term Success, https://aeschlapia.wordpress.com/2012/04/30/strategic-alliances-build-a-foundation-for-long-term-success/, we reviewed the steps you should include when developing your Strategic Alliance Plan.

Don’t make your strategic alliance plan a mountain; it only needs to be a molehill

Many advisors avoid the process of creating strategic alliances because it appears to be an overwhelming project with diminutive benefits.  Reality is, by creating strategic alliances you will position your firm to bring value to your clients and your business.  Start and keep your plan small and simple.  Focus on:

  • One or two relationships
  • Create mutual benefits for each organization
  • Align your vision and mission with the partners you choose
  • Mutually commit to specific actions and review, review, review
  • Establish a trial period
  • Define key and measurable metrics
  • Have an exit strategy

Recognize the importance your entire team can play in developing your strategic alliance plan and contribute to relationships that can be established.   You don’t need to take the entire project on yourself.  Delegate pieces of your plan and commit to regular meetings to discuss progress, challenges and overcoming objections.

Ironstone has found that the key factor in a strategic alliance plan is to follow up on metrics and expectations that you and your partners have agreed upon.  Lack of follow up leads to non- productive and one-way relationships.  If you find you are in a one-way relationship, you need to leave and create a new one.

We are curious!!  Does your firm have strategic alliances?  Tell us about it!

Follow us as we explore each of Ironstone’s Fundamental 4™!

  • Strategic Planning
  • Business Development
  • Operational Effectiveness
  • The Human Element

Coming up next, learn about Business Development and Your Firm’s Advisory Board

• Email us at info@ironstonehq.com
• Call our office at 800-917-8020
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Do You & Your Staff Hold The Key To Organizational Skills?

Do You & Your Staff Hold The Key To Organizational Skills?

It seems so simple that organizational skills and their importance often get overlooked as a necessary quality of good leadership.

Effective management of organizational details lie in the art of being able to see how everything works together to complete a project.  Hone these skills to create a razor sharp team.

“For entrepreneurs, ignorance is not bliss. It’s fatal. It’s costly. And it’s for losers. You either get organized, or get crushed.” – Donald J. Trump

Increasing productivity and remaining relatively stress free requires three BASIC organization skills

  • Prioritize – Make a list of everything that needs to be done on a daily basis.  Once you have created your list, put them in order of importance.  Finally, estimate how much time it will take you to complete each item.  The difficulty sets in when assessing a “time-value” to each item, as it is human nature to underestimate the time it takes us to complete a task or project.
  • Manage Your Time – While you are assessing “time-values” to your tasks and projects, identify other things that are wasting your time.  What can you do to change or eliminate time wasters?   Some things may be out of your control, like interruptions from a co-worker or boss, however much of it is in your control if you are able to distinguish the urgent versus the important.
  • Eliminate Clutter – It takes time to eliminate clutter, but will save you time in the end.  Eliminating clutter will improve your productivity by clearing your mind and surroundings, which in turn will lower stress levels.  By keeping your things sorted you will be able to find what you are looking for quickly and easily.

The purpose of this component in Ironstone’s Fundamental 4™ (The Human Element), is the development of individual and team efficiency and effectiveness for the benefit of the business.  The evolution of this fundamental revolves around organizational skills, management of teams, refined roles and responsibilities, and accountability for performance.  This opens the lines of communication throughout a team to create a positive culture.  “Everyone is on the same page” is very simple to understand but in reality, there are many directions and agendas driven by egos, greed, and lack of leadership.

Use our Personal Management Matrix to organize & Execute around your priorities.

PersonalManagementMatrix

We want to hear from you!  What tools do you use at your firm to improve time management?

Follow us as we explore each of Ironstone’s Fundamental 4™!

  • Strategic Planning
  • Business Development
  • Operational Effectiveness
  • The Human Element

You won’t want to miss our next in the series:  Strategic Planning-Compensation

 


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Begin With The End In Mind

Your succession plan should start when you make plans to open your firm.  If you want to create a purposeful life and path for your career, as you start your business think about what your exit game plan will be.  Regardless of being in the midst of success, if you do not have a succession plan, make it a priority this year. 

How should you start the process?  Think of yourself as replaceable and begin to delegate tasks to others.  Other key questions to answer in developing your succession plan:

  • At what time would you like to transition out?
  • Who will you sell to?
  • When will you make the transition?
  • How will all of these work together?
  • Are annual recurring revenues growing over time consistently or are they up and down and somewhat volatile?
 

Predictability is the preference in appealing a buyer to your firm.  Higher net cash flow and higher recurring revenue will give your firm a higher valuation. 

How long should an exit take?  Each firm is different, however, it can take months to years for the entire succession process.  When pursuing a sale the following steps can take 1 to 2 months per step and are critical in successful succession planning:

  • Preparation
  • Marketing
  • Negotiating
  • Due Diligence
  • Final Transaction
 

 Other considerations to include in your succession plan:

  • Prepare your team & your clients. Make sure your clients will receive the same level or better quality of service that they are currently receiving.
  • Train your clients so they are used to you being out of the office.
  • That the buyer can have a profitable practice.
  • That you will be compensated fairly for your practice.
  • Look for businesses that are compatible with your firm.
  • Is the business a fee-based or commission-based firm?
  • Is the firm financial-planning based or investment-management service based?
  • What is the firm’s client service philosophy?
 

As the owner of your firm, you are sure to be experiencing feelings of loss of control, loss of significance and grief.  Be aware that your team is experiencing an elevated pressure of anxiety if you leave them in the dark.  It is vital to communicate the tactics of your succession plan to your team.   

Purposeful planning is key to the entire succession planning process.  “One of the best things you can do is to work ON the business not just IN the business.”

 We want to hear from you!  Is your succession plan in place?

Contact us for assistance in following the proper steps needed for a successful succession plan.

 

Follow us as we explore each of Ironstone’s Fundamental 4™! 

  • Strategic Planning
  • Business Development
  • Operational Effectiveness
  • The Human Element

You won’t want to miss our next in the series:  Business Development- Branding & Value Proposition-Does Your Firm Have A Value Proposition?  Learn How To Create A Unique Value Proposition For Your Firm.