For those of you who are engaged in professions like tax preparers, investment managers and other professions based on finance, you can broaden your base in business effectively by applying additional services or products to your existing business. But, this has to be done very carefully by ensuring that success is obtained and promotion of the name of the brand is made effectively. Again, you have to consider various logistical and financial factors before you take the step to expand your practice using this method. Each of the factors has to be paid attention to the last detail prior to finalizing anything to stay away from expensive errors and frustration in profession.
There are certain points to consider while initiating new services in your business. It is obvious that each point will create difficulty and complexity depending on the type of circumstance, like the scope and nature of the current practices you are involved in as an advisor and the service or business type that will be added. If you have a huge established practice that helps you to generate a good amount of revenue, you have better chances of gaining from new services than advisors who have small client bases. The points that are crucial in this aspect of addition of new services are discussed below:
Integrating the New Business Line in the Existing Practice: This is the phase in which ideas related to providing services technologically and logistically are created. Requirement of new software for implementation of the new business line will ease the process in a huge way and integrating the new interface with the current software will fasten the process of importing data of clients and other relevant information. The decision also rests on the owners if the new product/service will be provided along the traditional lines or if it will be initiated in a different place and time.
Cost and Risk Evaluation: While chalking out a plan, you need to be able to assess the expected revenue from this new venture and the amount incurred in the process of investment in the new engagement. The best thing is to start with a survey of those clients that are already involved in the business and find out the number of clients who might be interested using this new product/service. In case the new additions need to be delivered as standalone business in the market, new strategies to gather more customers need to be implemented to increase the client base. Estimation of incurred costs includes:
- Expenses in recruiting and Training
- Liability insurance, legal and licensing fees
- Promotional costs and additional marketing
- Reference materials and educational costs
- Fees as start-ups for advisory custodian on investment or broker-dealer for hiring help in management of client assets
Promotion through Marketing: Your present practice as an advisor will determine the procedure of marketing for promotion. This process will start with the announcement of the new business addition to the company’s existing customer base. While marketing this new line of product/service, you must conduct a proper survey of the demography and geographical influence of the potential customers to understand the motives and needs of the public as well as market survey to learn of its requirements. Based on this research, you can place your advertisements, keeping the requirements as top priorities for marketing. Newsletters, websites, mass mailings, brochures and various other marketing forms are apt for fulfilling this task.
Those advisors whose aim is to seek additional lines to their existing business have to evaluate very carefully the costs, rewards and risks that get involved in the process of addition. A number of organizations offer plenty of information and resources to those that contemplate the possibilities of adding new services to their existing ventures. Thos of you who are presently registered with any broker-dealer must also make consultation to these organizations to seek advice and feedback. But if you plan to make sound plan in business and have every intention to carry it through in a formulated manner, you are sure to reap fruitful results on a long term basis.
Simon Hopes is a proficient author writing articles on auction of second hand cars and other similar topics. He contributes regularly for car auctions online.