The Importance of Return On Investment
The Premier League transfer window has been and gone. Clubs have been spending big – £835 million big!
This is a time when clubs sell their star players to one another with the hope that they will be good for business.
It feels strange to talk about the world of football as a business, but don’t doubt it – some of the most successful businessmen in the world now see the value in the beautiful game and are willing to invest huge amounts of money to reap the rewards it offers.
This got me thinking about what we and our businesses can invest in to build our revenue, profit and sale value. I have found what I consider the most exciting three things I can invest in, to help grow my business.
The one thing in life that is truly limited is your time. Once it’s gone its gone and there is no way of you personally making more of it. So if more time is what you need then you must go out and buy it. This means getting someone new to join your team. I have done this over and over again throughout the years. Sometimes the people work and sometimes they don’t – and in more ways than one!
Something I share with people at my workshops is that one way to increase your business is to spend more time face to face with clients, however like most advisers I already work a 40 hour week. So if I decided to increase my time with clients by 50% I would need more time.
If I want to spend 50% more of my time with clients I will end up with 50% more stuff to do. This means I have a shortfall of 20 Hours.
It’s up to you to decide if the investment is worth the return. I can honestly tell you that in my experience it is.
I am passionate about good marketing. For me it is the be all and end all of a successful business. You can have the best processes, offer the greatest proposition and have all the qualifications under the sun, but if you don’t have the clients you don’t have a business. I have always found that if I bring in enough new business then my team will keep up because there is no choice but to do so.
In my many years as a financial adviser I have learned some simple steps to take when trying to get new clients.
1. Pick a target market and get a list together
2. Think of at least 3 ways to contact the prospects*
3. Make it easy for the prospects to find and contact you
4. Have a script
* The reason you should have a number of different ways of targeting clients is because everyone takes in information differently. Some people will answer a call, some will read a letter and some will visit a Facebook page.
Some interesting Marketing facts:
1. On average companies spend around 20% of their revenue on marketing
2. 52% of financial advisers clients come through pro-active marketing activities, 48% come from Referrals
3. Those who spend more money on marketing outperform their competitors by 30% and increase profit margins by 12% – 16%
I invest heavily in marketing and I attribute my success of growing my personal turnover from £80,000 turnover to £800,000 in the first six years of my business mainly to this.
This might sound odd, but I spend a lot of time, effort and money investing in my own development. Going back to the football reference I started with, there is no way that Steven Gerrard just turns up on a Saturday to play football – he spends all week training and working hard so that when it counts he is as ready as he can possibly be.
I speak with a lot of advisers who tell me “no I don’t need any training” or “I would never spend any money to go to an event”. I can tell you the improvements I have made to my business as a result of meeting with other experts have been phenomenal. If you don’t want to take my word for it I would be happy to put you in touch with some really successful advisers that I know invest in training, coaching and self-development.
I hope you have enjoyed this short article. I really do believe in positive investment to get the best return for your business. The numbers need to be carefully calculated but with the right planning the reward should out weigh the risk.
I will leave you with a quote from one of my favourite entrepreneurs (and also, of course, the motto of the twelve most successful special forces units in the world)
“He who dares, wins” Delboy, Only fools and horses.