Headlines:
- Some firms do have planned growth as part of their business plans even though many see growth as
organic and something that just happens - Growth is just one factor and efficiency is the other key metric
- Managing capacity is a challenge for many firms both in terms of clients but also their time to work on
the business - Firms are looking at ways to ‘ring fence’ their liabilities as they grow. No clear path but something they
are conscious of - Many firms keen on looking at internal sale/ownership at some stage in the future to help them realise
value
Key Issues and Challenges
- As a business grows, keeping a handle on how efficient it is can be very time consuming. Reviewing
systems, IT etc is a massive task and one not many undertake - Most firms would prefer to buy just the assets of a firm so they do not take on any liabilities, however
this does not always tie in with what the seller wants - Client acquisition was something most were thinking of but it ‘felt like a lot of effort’ and many firms
were concerned with their capacity to look after more clients
Conclusion and Solutions:
- Smaller firms have significant time restraints to spend on their business as they are working so hard in
it - Growth seems to happen in many cases organically but some firms do plan for it
- Efficiency is difficult to keep on top of as you grow
- Firms in general are in good health and growing does not seem to be an issue for the majority of them
Experts:
Steven Greenfield and David Jones, Dimensional Fund Advisors Ltd
Facilitator:
Martyn Laverick, Soprano Consulting
