It was not that long ago financial advice was deemed a ‘cottage industry’ on the basis that, among other things, over 90% of firms had five advisers or less.
This classification has aged in more recent times with trends such as consolidation. However, the industry is still comprised of mostly small businesses and, within this segment, a significant percentage are single adviser firms.
Starting and running a business of any size can be challenging, irrespective of the stage of your career or whether you are starting out or heading towards retirement. You have the day-to-day administrative and corporate responsibilities, as well as the commercial and client matters to deal with and fulfil.
“Dunbar states human beings can have 150 meaningful contacts, 500 acquaintances and 1,500 people you can recognise”
Advice is a service-orientated business after all, so to be successful you have show up every day and make plans to help your clients achieve their financial goals.
But as a business owner or company director, who is there to help you? It can be isolating and lonely at the top, so being part of a community is key.
Community, at its essence, is about people having an alignment of values and purpose, and the feeling of being part of a wider group. A strong sense of community typically results in individuals feeling connected and supported. This can enhance personal and professional wellbeing and collective sense of purpose.
The origins of community go back to the dawn of civilisation and the size of community groups formed are said, according to evolutionary psychologist Robin Dunbar of ‘Dunbar’s number’ fame, to relate to brain size.
“5% of advisers are under 30 years old, 15% are women and over 50% want to retire in the next 10 years”
Dunbar states human beings can have 150 meaningful contacts, 500 acquaintances and 1,500 people you can recognise. Indeed, these numbers may sound familiar with advisers in terms of being comparable to family, friend, colleague and client groups.
In our industry, there are currently over 28,000 advisers and over 5,000 advice firms. Recent data also indicates approximately 5% of advisers are under 30 years old, 15% are women and over 50% want to retire in the next 10 years.
This suggests there is a significant demographic change underway amid the backdrop of technological innovation, evolving customer expectations, heightened regulation and an increase in the demand for advice.
For advisers that operate autonomously or as part of a small firm, being a member of a community can provide the support network to enable the individual and business to thrive, and a collective resilience when part of a wider group.
“Being part of a community means you can be distinct and independent but never inherently alone”
This support could be manifested through peer forums, community events and workings groups, where challenges and opportunities can be shared and discussed among peers. The network may comprise a diverse range of backgrounds and circumstances – however, its members often have a shared value set and like-minded approach.
Being part of a community means you can be distinct and independent but never inherently alone, and this can be a powerful foundation for achieving your goals and objectives. This is particularly important for advisers, when considering the marketplace is increasingly being consolidated and restricted, that seek to provide authentic independent financial advice and support clients in their best interests.
As an adviser or small business owner, it can also be advantageous to have a mentor.
A mentor can come in many forms but they generally have some trait or achievement you respect and/or want to emulate. The value of a mentor can be as an accountability partner or as a sounding board or sense checker. I have had numerous mentors throughout my business life, who have assisted me greatly on my own entrepreneurial journey.
“The value of a mentor can be as an accountability partner or as a sounding board or sense checker”
Ultimately, in an industry where many participants are small businesses, and in the context of increasing corporate consolidation, the benefits of being part of a community of advisers is clear.
For those that feel isolated, unaligned on values or that something is missing, networks are something to consider. Beyond the tangible benefits of knowledge sharing, professional development and collaboration, feeling you are part of a community that shares your values can bring additional personal and professional fulfilment and business success.
