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Practice Management > Building Your Business

Why You Should Benchmark, and Tips for Effective Benchmarking: Pt. 2

By J. Scott Slater

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As we wrote in the first of our two-part blog series on the benefits of benchmarking, growing your RIA business in the face of rising competition for clients, assets and staff has become more challenging than ever. One of the best ways to help overcome this challenge is to benchmark your business performance.

In this, the second of a two-part blog posting, we’ll look at a few of the Schwab 2011 Benchmarking Study’s findings to see what participants reported as the greatest barriers to growth and the greatest enablers of growth. To remind you, the Study comprises self-reported data from advisory firms that custody their assets with Charles Schwab. Responses were collected during February and March of 2011.

Schwab’s 2011 RIA Benchmarking Study Results

Top Barriers to Growth (Percent of Firms)

  • Sufficient time for business development – 52%
  • Following a well-thought-out marketing strategy – 39%
  • Identifying new prospects – 34%
  • Sufficient financial investment in marketing – 32%
  • Finding and hiring required talent – 28%
  • Implementing long term strategic plans – 25%
  • Accountability for business development – 24%
  • Developing and retaining talent – 22%
  • Sufficient capacity for additional clients – 22%
  • Meeting and adapting to regulatory changes – 21%

Top Enablers of Growth (Percent of Firms)

  • Maintaining quality of client service with growth – 80%
  • Closing new client business – 77%
  • Delivering investment returns – 70%
  • Implementing new technologies – 69%
  • Maintaining efficient operations with growth – 63%
  • Providing access to investments – 58%
  • Maintaining capacity to add new clients – 53%
  • Adapting the organizational structure – 49%
  • Implementing long-term strategic plans – 49%
  • Developing and retaining talent – 47%–

This month, Schwab will launch its 2012 RIA Benchmarking Survey for those that custody with the firm. (0212-1057)

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