M
ichael Gerber, author of the E-Myth, famously observed that most entrepreneurs are simply technicians who have experienced an “entrepreneurial seizure”. Many businesses fail because their owners spend too much time working in the business rather than on it.
During my nearly 20 years at Allan Gray, I noticed a clear pattern among financial planners who also owned their firms: the most successful businesses were those that deliberately set aside time to focus on strategy, systems and growth; working on the business, not just in it.
Every owner should periodically reflect and assess whether the building blocks of long-term success are firmly in place.
Four cornerstones define the foundation:
- Commercial strength
- Marketing focus
- People management
- Operational discipline
Each requires deliberate attention and regular refinement.
1. The commercial cornerstone
A financial planning business is first a business. That means having a clear vision, measurable objectives and a strategy to achieve them. A written business plan is not a box-ticking exercise. It is a living framework that must be reviewed, updated and shared with the entire team.
Business owners should ask:
- Do we know how profitable each client segment really is?
- Do we measure performance monthly and act on the results?
- Can we accurately state the value of our business today?
These questions help turn assumptions into measurable facts.
Strategic decision-making also demands structure. A Board of Advice or advisory forum can hold leadership accountable. Without this, businesses risk drifting along, reacting to events instead of steering towards a defined destination.
2. The marketing cornerstone
Some financial planners may rely on referrals and word of mouth, but a financial planning business cannot grow sustainably without a marketing strategy. A robust marketing plan goes beyond brochures and websites. It defines your target clients, clarifies your service offering and explains your pricing structure.
Marketing requires investment. Allocating at least 4% of revenue is a rule of thumb, but effectiveness matters more than the spend.
Business owners should ask:
- What activities are delivering new clients?
- How are we reinforcing our unique value proposition with both clients and staff?
A financial planning business cannot grow sustainably without a marketing strategy.
Strategic alliances with accountants, attorneys and other professionals can expand reach if managed with intent. Communication with clients should be proactive, not reactive. A financial planning business that waits for clients to initiate contact risks losing relevance. The goal is to be top of mind and consistently demonstrate value.
3. The people cornerstone
No business succeeds without the right people. Job descriptions, performance reviews and employment policies may sound administrative, but they form the backbone of a professional environment. A strong people strategy also ties remuneration to results and provides staff with opportunities for development.
The ability to keep top talent is the definitive benchmark of a strong business. If a business struggles to hold onto talent, it could signal deeper cultural issues.
Business owners should ask:
- Are we cultivating a workplace where recognition, purpose and clear communication drive motivation or are we relying solely on compensation to keep people engaged?
- Is our team environment one where morale is high and communication flows freely or are we seeing signs of disengagement and disconnect?
Financial planning is a people business at its core. Clients will always judge a firm by their experience with its people. That makes investing in training, motivation and transparent communication not optional but essential.
No business succeeds without the right people.
4. The operations cornerstone
Operations is the heartbeat of your business. Even the best plans and people will fail without systems that create consistency. Documented policies, clear workflows and accessible client data ensure the business runs smoothly even when individuals are absent or replaced.
Workflow management tools allow owners to track tasks, monitor turnaround times and confirm capacity. These insights help avoid bottlenecks and ensure promises to clients are met.
Disaster recovery planning also deserves attention. Business continuity is not only about regulatory compliance, but also about protecting the trust your clients place in you. They need to know their financial future is secure, no matter what happens behind the scenes.
Operations should be viewed not as an overhead but as the infrastructure that allows scale. A business that relies on ad hoc processes cannot grow without risking service quality.
A financial planning business cannot grow sustainably without a marketing strategy.
Bringing it all together
Financial planning is demanding work. It is easy for owners to spend every hour serving clients and none strengthening the business. Yet businesses that thrive over decades are those that deliberately build on these four cornerstones.
Business owners should use these pillars as a diagnostic tool to answer the following:
- Which areas are solid, and which need development?
- Is marketing underfunded?
- Are people policies outdated?
- Are operational systems too dependent on individuals rather than processes?
A business that actively strengthens its commercial, marketing, people and operational foundations is not just surviving year by year. It is building resilience, profitability and long-term value.
