The 9 Most Common Mistakes Advisors Make: Mistake #5
The 9 Most Common Mistakes Advisors Make
Mistake #5: Being Penny Wise and Pound Foolish
So often I coach advisors on making large decisions for their firms, and I hear the same question time and again - "How much will it cost?"
While an important question to address, it's hardly ever the most important question. The most important question is nearly always, "Will it add remarkable value to my practice and improve my clients' experience with us?"
Once you can answer, "yes" to that question, we enter into the realm of either being too thrifty or too extravagant. One of the biggest mistakes advisors make is being penny wise and pound foolish, or not knowing when to skimp or save.
The first issue is being penny wise. Cheap is not always best, especially when it comes to technology, hiring staff, marketing, and anything regarding long-term strategic planning. The choice to look at these items not as expenditures, but as investments has a cascading effect through your business.
The second issue is being pound foolish. Did you invest in a 12-month advertising plan for thousands of dollars in a local publication because it's "cool" to have an ad for your business? How many leads have you gotten as a result? Chances are, not enough to offset your cost.
Consider something like your payout as well. Did you choose the broker-dealer with the highest payout? If so, what kind of value are they providing you from a support standpoint? What about investment solutions? Practice management? Chances are, you may have sacrificed value for cash. This tradeoff could be costing you in the long-term.
Have you been guilty of making the mistake of being penny wise and pound foolish? If so, there's time to make a change. Check out our guide on when to save and where to splurge to see the best places you can make adjustments and help propel your business forward.
Keep your eyes out for our next most common mistake advisors make, and be sure to download our resources to help you invest wisely in your business.