Can you predict the evolution of your firm? YES! Here s How. ADVISOR TIME ANGIE HERBERS INC.

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1 Can you predict the evolution of your firm? YES! Here s How.

2 Predictable Revenue is a Luxury $1,000,000 $600,000 $700,000 $800,000 $900,000 $600,000 $350,000 $350,000 $375,000 $300,000 $400,000 $500,000 $150,000 Systematic Growth Chaotic Growth *Dollar Figures Equal Firm s Annual Gross Revenue. Illustration Only.

3 Example: Unpredictable Revenue

4 Example: Predictable Revenue

5 Why is predictable revenue important to you? It will save you millions of dollars in management costs over the life of your business It will save you hours and hours of time You will never need to invent the wheel It will increase the equity value of your business and create your succession

6 The Deadly Growth Cycle Sales Sell to comfortable level of revenue Step 1: Sales Step 2: Professional Hire Professional Hire Hire Professional Talent with No training process Increased Expenses Baggage No professional management Consultant hiring Failed acquisitions Burnt out owners Turnover of key talent Step 5: Baggage Step 4: Growth Step 3: Hate Hate Hire backoffice rapidly High Stress Levels Low Productivity Increased management of staff Sale or merge Growth Increased marketing expense Over innovation Low owners income Low profits Acquisitions

7 Revenue Levels of The Deadly Cycle $350K $550K $750K $1M $2.5M Sales Hire Hate Growth Baggage Revert Back: Sales

8 Deadly Cycle Creates Massive Stress Levels 10 0 Yerkes Dodson Human Performance vs. Performance Curve 10

9 Productive Cycle of Growth by Revenue Size $350K $550K $650K $750K $1M Sales Client Operations Human Capital Partner Branding - Sole focus on getting new clients - Create Client Service Models - Reengineer your client base - Define Client Experience - Slow growth - Invest in technology systems to support client models - Create operational process to support professional training - Hire professional talent - Implement P4 and revenue based bonus program - Begin creating Diamond Teams - Implement org structure and career track - Create partnership track - Handoff some business management responsibilities - Create succession plan - Maximize owners income - Investment in marketing branding - Create National Brand - Perception of a big business - Hire marketing consultants

10 The result? Constant Growth for Focused Firms 3 Year Growth in Owner s Income 2010 Growth in Owner s Income 3 Year Growth in Revenue 2010 Growth in Revenue Focused Unfocused 15% - 10% 66% 25% 14% 3% 33% 12% Focused Firms Unfocused Firms

11 The result? A Life! Focused Firms Unfocused Firms

12 2: Client Models Create Client Service Experience through Client Service Models Reengineer and educate current client base on firm services Create Consistent Pricing Structure Simplify Prospective Process

13 Example: Client Service Model Model 1: Investment Management Model 2: Advanced Planning Services PLUS Investment Management Model 3: Ancillary Services Tax Preparation Business Services Retirement Planning Service

14 3: Operations and Technology Invest in technology (hardware and software) to support client service model Create operations manual to guide future training of professional talent

15 Focused Firms Value Technology Usage Focused Firms Unfocused Firms

16 Overview of Operations Manual

17 4: Human Capital Hire professional talent Create P4 Firm with a revenue based bonus system to reward for growth Begin Diamond Team Development

18 Creating a P4 Firm Preparation: Teaching employees to be good employees Pay: Paying a fair wage with bonuses based on growth Perks: Giving something that is meaningful Productivity: Hardware and software that increases productivity

19 Resource on Crea,ng a P4 Firm P4: Building Great Businesses by Creating Great Employees Based on a 5-year clinical research study, Angie Herbers Inc. has developed a four point human capital management system aimed at helping financial advisory firms maximize the effectiveness of their most valuable asset it s people. We call this the P4 Program. *Free Download at

20 Creating Diamond Team

21 Resource on Diamond Teams Diamond Teams : How A Simple Organizational Structure Redesign Will Change Many Major Advisory Firm Issues Originally created as a strategy to better train entrylevel advisors, Diamond Teams is a revolutionary way to organize independent advisory firms. *Free Download at

22 5: Partnership Create a partnership track for key employees Handoff business management responsibilities Create a viable succession plan Maximize owners income

23 6: Branding Make investments in branding and exclusive marketing campaigns Perception of a big business Hire marketing consultants

24 Result? Constant Growth Become an Employer of Choice Create Internship Programs Hire as fast as possible Create a strategy to acquire other firms

25 Angie Herbers Angie Herbers is the founder of and serves as a senior consultant for Angie Herbers, Inc. ( She brings more than a decade of experience working with national and international small businesses, as well as independent financial advisory firms. Throughout her career, Angie has helped hundreds of small businesses and over 600 financial advisory firms to develop effective and productive human capital programs, increase employee satisfaction, form efficient organizational structures, and create viable succession plans, all focused on continual revenue growth and long-term operational success. Angie writes monthly columns and has blogged for Investment Advisor magazine and ThinkAdvisor since In her writings, she shares the results of her extensive research and rich experiences culled from her consulting work within the financial community. In 2007 and in 2013, Investment Advisor magazine named Angie Top 25 Most Influential People in the Advisory Industry. Her work has been featured in many well-respected industry publications including Financial Planning magazine, Financial Advisor magazine, The Wall Street Journal, Journal of Financial Planning, Solutions magazine, Money magazine, Research magazine and Wealth Manager magazine, just to name a few.