Questioning your 2025 Business Planning

As the end of the year approaches, many financial advisory firms are celebrating increased assets under management (AUM). Yet, inflation, personnel expenses, and other overhead costs may be putting pressure on margins. This duality—success on the one hand, financial strain on the other—makes now the perfect time for intentional business planning for 2025.

For most firms, the priorities tend to remain familiar: grow through referrals, optimize workflows, and continue delivering exceptional client service. But what if next year’s business plan focuses not only on what you will do but also on what you won’t do? Shifting your perspective can uncover opportunities to refine your strategy, better position your business for future success, and reduce unnecessary complexity.

Questions to Shape Your 2025 Strategy and Plan:

What Activities No Longer Serve Your Goals?

Take an honest inventory of your time and resources. Are there legacy processes, services, or relationships that no longer align with your firm’s direction? Pruning these can free up capacity for more impactful efforts.  What can you stop?

Are You Considering a Merger or Sale?

For advisors contemplating a transition, 2025 could be the year to maximize your firm’s valuation. What can you do now to make your practice more attractive to buyers? Focus on scalable systems, consistent client experiences, and predictable revenue streams.  How can your “leaner” firm increase your value?

What Lessons Did 2024 Teach You?

Reflect on what worked well this year and where there’s room to grow. Did new technologies deliver the efficiencies you expected? Were client acquisition efforts as effective as planned? Using this analysis, double down on proven strategies and recalibrate where necessary. If it didn’t work, why keep doing it?

How Can You Differentiate Yourself?

With increased competition in the RIA space, standing out is more critical than ever. Consider refreshing your value proposition. Are you clearly articulating how you address clients’ unique challenges? This can include financial literacy programs, personalized wealth management plans, or innovative client engagement models. Deeper client connections are a key to success, are you cutting through the noise?

Are You Aligned with the Future of Advice?

Clients today expect more than investment management; they want holistic financial guidance. Evaluate your service offerings to ensure you’re not just providing lip service to planning but actually meeting these evolving expectations. Could 2025 be the year you expand into areas like extended family financial planning, deeper estate or tax strategies, or niche markets?

Beyond Strategy: The Importance of Mindset

It’s easy to get caught up in operational tweaks, but don’t overlook the importance of mindset. Are you and your team embracing a culture of adaptability and innovation? Are all of you on the same page with regard to company goals, client-first attitude, and innovation?  As regulatory environments evolve and client demands shift, firms that lean into change will thrive.

Takeaway: Make 2025 Your Year of Intentional Growth

By flipping the script and focusing on what not to do, you create space for clarity and momentum. As you refine your 2025 goals, keep an eye on the bigger picture: delivering value to clients, achieving sustainable growth, and preparing your firm for whatever the future holds. Whether it’s exploring M&A opportunities, enhancing your tech stack, or redefining your client experience, your intentionality now can set the stage for a successful and fulfilling year ahead.

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