Practice Management
Success: Building A
Market-Leading Advisory
Business
Mark Tibergien
Managing Director
Chief Executive Officer
Pershing Advisor Solutions LLC
© 2014 Pershing LLC. Member FINRA, NYSE, SIPC. For professional use only.
Not for distribution to the public. Please see disclosures at end. Proprietary and confidential.
What Are the Biggest Challenges Today?
Clear
Positioning
2
Capacity and
Efficiency
Consistent
Profitability
Talent
Recruiting
and
Development
© 2014 Pershing LLC. Member FINRA, NYSE, SIPC. For professional use only. Not for distribution to the public.
Please see disclosures at end. Proprietary and confidential.
MultiGenerational
Appeal
What Best Firms Are Doing?
• Establishing clear positioning
• Managing to profitability
• Developing talent
• Creating operating leverage
3
© 2014 Pershing LLC. Member FINRA, NYSE, SIPC. For professional use only. Not for distribution to the public.
Please see disclosures at end. Proprietary and confidential.
Who Is Your Optimal Client?
Baby
Boomers
Mass
Affluent
4
Gen Y/
Millennial
Gen X
High Net
Worth
Ultra-High
Net Worth
© 2014 Pershing LLC. Member FINRA, NYSE, SIPC. For professional use only. Not for distribution to the public.
Please see disclosures at end. Proprietary and confidential.
Grow Faster (and Profitably) With the Right Clients
Revenue
Pre-Tax Income Per Owner
$200,000
$1,500,000
$1,000,000
$100,000
$500,000
$0
$0
>80% on Target
<20% on Target
Source: Moss Adams LLP, FPA Financial Performance Study
5
© 2014 Pershing LLC. Member FINRA, NYSE, SIPC. For professional use only. Not for distribution to the public.
Please see disclosures at end. Proprietary and confidential.
Manage to Profitability
Direct
Expense
Revenue
Gross
Profit
6
Overhead
Expenses
Operating
Profit
© 2014 Pershing LLC. Member FINRA, NYSE, SIPC. For professional use only. Not for distribution to the public.
Please see disclosures at end. Proprietary and confidential.
Recruit and Develop the Next Generation of Talent
7
© 2014 Pershing LLC. Member FINRA, NYSE, SIPC. For professional use only. Not for distribution to the public.
Please see disclosures at end. Proprietary and confidential.
Adding Talent Re-Energizes the Practice
Knowledge and Contacts
Level
Energy Level
Age
8
© 2014 Pershing LLC. Member FINRA, NYSE, SIPC. For professional use only. Not for distribution to the public.
Please see disclosures at end. Proprietary and confidential.
Grow Through Greater Efficiency
Create
Capacity
Build
Teams
9
Serve More
Clients
Acquire
Practices
Serve Fewer
Clients
Refine
Focus
Change
Experience
© 2014 Pershing LLC. Member FINRA, NYSE, SIPC. For professional use only. Not for distribution to the public.
Please see disclosures at end. Proprietary and confidential.
The Advisors’ Journey
10
Book of Business
Business
Revenue
Profit
Cost
Investment
Individual
Team
More Clients
Right Clients
© 2014 Pershing LLC. Member FINRA, NYSE, SIPC. For professional use only. Not for distribution to the public.
Please see disclosures at end. Proprietary and confidential.
Disclosures
© 2014 Pershing LLC. Pershing LLC, member FINRA, NYSE, SIPC, is a wholly owned subsidiary of
The Bank of New York Mellon Corporation (BNY Mellon). Trademark(s) belong to their respective owners.
For professional use only. Not for distribution to the public. The information contained herein, including
any attachments, is proprietary to, and constitutes confidential information of Pershing. It may not
be reproduced, retransmitted or redistributed in any manner without the express written consent
of Pershing LLC.
11
© 2014 Pershing LLC. Member FINRA, NYSE, SIPC. For professional use only. Not for distribution to the public.
Please see disclosures at end. Proprietary and confidential.