As a financial professional, your No. 1 priority is your clients’ financial well-being. While you work hard to secure their interests, unexpected challenges can take place impacting your practice. They may range from physical destruction of your office, records and technology systems from severe weather to a health event where you or a team member is out for a medical need. By taking steps today, you can ensure your clients are cared for, and the value of your business is protected in case a crisis would happen.
Make a game plan
While it’s never fun to consider worst-case scenarios, a contingency plan can give you confidence.
Begin with client experience. What kind of service do your clients expect? What if a day of crisis turned into a week, or longer? What functions would be most critical for giving clients seamless, prompt service? What concerns might they have?
Think short and long term. When it comes to key functions in a longer-term emergency, prioritization will be key. It would also be a good idea to reach out to your parent firm or other business partners for assistance. In your contingency plan, list who is backup for each function. Share that list with all employees in the office.
Empower your staff. Involve key employees in your planning process. Work together as a team to imagine some scenarios and create checklists of responses. Set up a crisis management team to oversee staff training for unforeseen events, such as an office evacuation, extended power outage or other emergency.
Make your wishes known. Does your staff know what steps to take if something happens to you personally? Write down a set of instructions, including important contacts, insurance coverage and financial information (including how to treat company stock).
Manage for continuity
What happens to your business if you suddenly become unavailable or lose a core staff member? To ensure a consistent client experience, look for ways to systemize and document procedures such as client on-boarding or billing.
Many financial professionals are moving toward automating or outsourcing more functions, such as marketing, billing or even portfolio modeling. In some cases, these services may already be offered by your parent firm. Such strategies have the added advantage of creating the kind of operational consistency potential buyers look for in valuing a financial services business.