I was interested to read an article in New Model Adviser this week by david Burns of NMG reflecting on their predictions from 12 months ago about the impact RDR would have on the adviser community. The article, under the headline “Business boom for advisers dispels RDR gloom” focuses on the fact that there has been no mass exodus of advisers. On the contrary he suggests that firms are “thriving” with an average revenue increase of 5% across the 350 firms they asked.
Now, I don’t know about you but I wouldn’t describe a 5% increase in revenues as a “boom”. Our strategic planning clients typically enjoy something a little more exciting in terms of growth and of course an increase in revenue (however large) isn’t relevant unless it delivers an increase in profitability.
And of course this is an avearge. Within that 5%, I would wager that some firms have seen significant increases and others will have seen painful reductions. That’s the problem with averages. Whilst they might provide a potential benchmark against which to compare your business, what really matters to you the business owner, is how YOUR business is doing.