the business will continue to serve clients in the future. However, good financial management extends far beyond revenue and assets under management.
The most successful firms have a deep understanding of the cost of servicing clients, adviser capacity, revenue per adviser, and profitability across different parts of the business. They understand the balance between recurring and transactional revenue, and they closely monitor cash generation and business resilience.
One of the most difficult challenges facing firms today is understanding the true cost of delivering ongoing advice. Adviser time is only one element of consideration, with admin, paraplanning, compliance oversight, PI, technology, Consumer Duty obligations, and a host of other activities also contributing to the overall cost of service delivery, many of which are difficult to measure on a per-client basis.
Client profitability can also vary significantly. A client paying a high fee is not always the most profitable relationship if that client requires a disproportionate amount of support. Equally, some lower-revenue clients may be highly efficient to service and represent excellent long-term value. The challenge for firms is understanding where that balance sits.
" One of the biggest misconceptions I’ ve come across is that profitability and customer outcomes somehow compete with one another when, in reality, sustainable profitability is built upon good customer outcomes."
Find the sweet spot balancing satisfied customers and commercial viability
One of the biggest misconceptions I’ ve come across is that profitability and customer outcomes somehow compete with one another when, in reality, sustainable profitability is built upon good customer outcomes.
Recent regulatory scrutiny of ongoing advice services has reinforced the importance of firms delivering the services they promise. The question is not whether clients are paying a fee but whether firms are consistently delivering services that remain valuable, relevant, and appropriate to clients ' needs. In my experience, businesses which align commercial success with customer satisfaction tend to benefit from stronger retention, greater referral activity, and more sustainable long-term growth.
I often think about an adviser who helped me following the death of a family member. He effectively dropped everything for a week to support me through the process and, from a client perspective, the experience was exceptional. Viewed purely through a commercial lens, on a surface level you could question whether the amount of time invested was efficient. But equally, that level of support created trust, loyalty, and advocacy that may generate value for years to come.
Successful firms understand the balance between efficiency and customer experience. The goal is not to reduce the time spent with clients, but to ensure that the time invested delivers the right outcomes for both clients and the business.
Efficiency is where profitability is often won
The third area I suggested firms would benefit from focussing upon is operational process- often where firms create the biggest gains in productivity and profitability.
Many smaller advice businesses are built around dedicated advisers who wear multiple hats. They may provide excellent client service, but can also become operationally inefficient if advisers spend too much time carrying out admin or managing tasks that could be undertaken elsewhere. The most productive firms I’ ve worked with design their businesses so advisers focus on advising.
Technology plays an important role in driving efficiency, but does not create profitability in isolation. I think this is why so many firms have invested heavily in systems over the years without achieving the productivity gains they expected. The issue is not usually the technology itself but in the understanding that real value lies in system integration.
I’ ve found the firms seeing the best results are those creating joined-up ecosystems with automated workflows, integrated technology, and streamlined client journeys. They use data effectively, monitor adviser capacity closely, and remove unnecessary complexity wherever possible.
September 2026 | 11