As a financial advisor, it’s important to be aware of the mistakes that can hinder your growth and profitability. One of the most common mistakes is what Brandon Stukey calls “multiplying overhead.” This refers to the tendency of advisors to add more staff as their business grows, without considering the impact on their bottom line.
While it may seem like a status symbol to have a large team, multiplying overhead can be a significant drain on profits. The cost of salaries and benefits for full-time employees can eat into your revenue and hinder your ability to grow. Brandon advises that you be careful, especially in today’s day and age, where much of what staff do can be automated.
He suggests that before you hire anyone, you should first maximize your existing technology and automation solutions to handle day-to-day tasks. This will allow you to make your current staff more effective and free them up to do the things that only humans can do, like thinking and client service. You should also consider outsourcing or hiring fractional employees for tasks like marketing or virtual assistance. This can help you build your team without taking on the full cost of a full-time salary and benefits.
The key takeaway from Brandon’s advice is that you should have a plan before you add any more overhead. Ask yourself if you really need the position and whether there are any outsource solutions or technology that can help you achieve your goals. With careful planning and a focus on maximizing efficiency, you can grow your business without multiplying overhead and sacrificing profitability.