Financial Advisors find new ways to overcome the disadvantages of isolation and size in tough times

Financial advisors have discovered a competitive solution to tough times by banding together and becoming part of a big operation while retaining their independence.

“This new approach overcomes the disadvantages of isolation and lack of bulk buying leverage,” says Wealth Associates executive director, Marc du Plooy.

“The truth is size does matter in negotiating good deals and exclusive products that are cost effective and profitable. Our business model means each broker retains their independence while having access to inspiring likeminded industry colleagues who really understand current challenges. They become collaborators not competitors who financially participate in the success of each other through shares in the Group. Their clients get the same intimate attention but with the bulk buying deal benefits.

“Energy drain and focus distraction are other problems for smaller operators. Labour issues, employment contracts, financial administration, accounting, HR, IT, and more, are all distractions that can haemorrhage profits – a survival threat in these tight times. A solution had to be found to support the independent operators. Wealth Associates takes over time consuming hassles as well as giving expert backup on structuring commissions and succession planning.”

Four participating financial advisors comment:

Theoniel Macdonald, MD of Complete Business Solutions has discovered the benefits of collective strength. “We have achieved tremendous success since becoming part of the

Group of companies and gone from strength to strength. Brokerages are usually very isolated and few synergies exist between us. Since joining the Group we have received tremendous support from other brokerages. Sharing in intellectual property not only benefits each of us, but the entire group. Also, things happen quicker as we are no longer isolated but benefit from the collective strength of the entire group.”

For Dan Lezar, MD of Razel Finance & Alberton Insurance, succession planning was a worry. “Being close to retirement, joining the Group allowed me to develop an exit strategy knowing that my business, clients, and staff would be in good hands. The camaraderie, friendships, and idea sharing with peers have been very valuable to me and my business. Their support on a personal and business level helped me to get through the last year – which has been difficult for everyone. I am motivated and committed and performing at a high level as a result.”

Du Plooy identifies four important reasons why the new approach works:

· Member brokers don’t compete with each other

· They share ideas that make the Group grow bigger through cooperation

· The bigger the Group the more benefits for all members of the Group

· Hassles of admin are removed

Jeremy Squier, founder of Squier Financial Services (Pty) Ltd and Trilogy Benefits Group (Pty) Ltd gives his perspective “Associates can leverage off the collective knowledge and diversity of fellow members as well as Head Office and majority shareholders. In addition, opportunity exists for the more mature brokers to create and implement succession plans and for the younger guys to expand their practices by collaboration in the succession planning process. Meanwhile, we retain true independence of operation – so valued by our clients – but enjoy the typical advantages enjoyed by members of agencies or larger corporate brokers. For me it is significant that, as shareholders in Wealth Associates, we all retain financial interest in our own operation but also acquire a financial interest in the larger collaborative group. This means value is extracted by us and our families in the long term.”

According to Jim Millar, Group MD of Financial Fitness “Some 'smart' guy once said: 'If you are not growing your business it's dying'. Joining Wealth Associates has challenged and encouraged me and my team to take advantage of many dormant opportunities that were right in front of our noses in spite of fourteen years of successful growth to a healthy level. The collective experience of the Group teamopens doorsthat we had overlooked. In addition, the business model ensures that helping the others is ultimately helping yourself and your clients. In a world of uncertainty Wealth Associates presents a valuable win-win for smaller brokers.”