Metrics: Do You Know Yours?

 

 

Survey says — 7 out of 10 Early Career advisors don’t know their metrics!

I recently did a workshop for financial advisors with 3-7 years experience.  I asked, “Who keeps monthly books?  Who has computerized bookkeeping?”

Surprisingly thirty percent raised their hands and the rest shrugged.

Metrics are your numbers and the math.  You need to know!

How much in assets do I require to generate the revenue I need?

What are my monthly expenses? Quarterly expenses?

What are my expenses as a percentage of revenue?

What are my receivables or payables?

What are my margins?  Can I hire?  Can I give someone a raise or bonus?

You get the idea!

Any advisor, like any small business, needs solid systems to help run the business.

Accounting can be done in-house using products like QuickBooks OR outsourced to a bookkeeper or to your accountant.

The cost of outsourcing is worth it.  This will give you the faith and confidence to know where you are.

Guide – Your business needs a financial plan and a full monthly P&L will be your scorecard.

Action Item – Find a trusted bookkeeper and start tracking your metrics.

© 2009 The Advisors Center, LLC – All Rights Reserved

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