Case Studies

CASE STUDY 1 – Repeatable system for developing new business

In 2015, a financial advisor firm in northern Baltimore County hired On3 Strategies as a consultant. The 15 year-old firm consisted of three advisors, one assistant, and a part-time marketing professional and managed approximately $60 million in assets. The firm grew primarily through the work of the lead advisor/ owner, since the junior advisors were inexperienced and did not acquire clients. Even though the addition of clients and associated work was a successful growth strategy, it added significant complications in running the business. They needed a more effective process to streamline this growth.

On3 Strategies was hired as a consultant in 2015. The partnership

On3 Strategies created a layer of executive level experience to help guide the practice into the future with a clear design. From experience, Erik Sauer knew the firm needed to focus on five things:

  1. Choose and fully implement CRM & financial services technology to suit the business.
  2. Completely organize the firm data; client info, prospect info and centers of influence (COI).
  3. Design consistent investment models.
  4. Design a consistent growth strategy centered around practice acquisition and augmented by advisor prospecting and “farming” within existing the customer base.
  5.  Clearly define the roles and responsibilities of the owners and staff for today and in the future.

Erik knew the firm need to create more efficiency across all aspects of the business, with specific focus on the acquisition process.

The results were rapid and sustainable. Over three years, the practice grew from $60 million assets under management (AUM), to $180 million AUM. The practice built out consistent, top performing, and cost effective asset management models. Additionally, the firm hired two tenured advisors with capabilities of developing new business, writing financial plans, andperforming the complex trading within the practice. Additionally, the firm grew to three staff members, including afull time administrator, a part-time marketing coordinator and a part-time office support coordinator.

The growth of the firm came from two core areas: streamlined practice acquisition and advisors increasing their productivity through consistent marketing, networking, and referral opportunities. To facilitate the purchase of multiple practices, the firm implemented new technologies and designed processes to onboard new practices and those clients. They effectively used CRM technology  to keep track of and engage the new and existing clientele.

CASE STUDY 2 – Teamwork

In 2017, a Wilmington, Delaware based financial advisory firm hired On3 Strategies as a consultant. The 11-year old firm was successful: they had grown to $30 million AUM with about 150 clients. However, a single advisor built most of the practice. He had a significant tax and trust background, and built a customer base around financial planning, tax risk mitigation and retirement planning. This entrepreneurial advisor grew a unique client base.  

Relying on a single advisor stressed the business. Growth plateaued as the owner failed to balance attracting new clients, marketing the business, and providing the work and expertise to the existing customers.In 2015, he hired a junior advisor hoping this would ease the burden and take the practice to a new level.

But the fix was not that simple.The senior advisor found it difficult to train the new advisor and keep up with the ongoing work of the firm. The junior advisor had little experience with business development, and he was not familiar with the challenges of working in an entrepreneurial business. He provided little growth to the firm between 2015 to 2017, and became a draw on time and resources.
In January 2017, the firm partnered with On3 Strategies to add a layer of executive level experience and help guide the practice into the future with a clear design. Coach Erik Sauer determined the firm needed to focus on the following areas:

  1. Choose and fully implement CRM & financial services technology to suit the business.
  2. Completely organize the firm data; client info, prospect info, and centers of influence (COI).
  3. Design a consistent growth strategy centered around the tax practice and  help acquire a mature tax practice that could identify financial planning opportunities.
  4. Clearly define the roles and responsibilities of the owners and staff for the present and future.
  5. Help the junior advisor create a systematized way of working within the practice, servicing his clientele, creating an effective client acquisition strategy, and uncovering new opportunities from inside the existing book of business.  

On3 knew that their goal was to become  more efficient across all aspects of the business, with specific focus on the acquisition process. 

Over the past two years, the practice has resumed a growth trajectory.  The firm has a road map to grow the business, and they have grown in  three distinct ways. First, they target local tax firms for acquisition, with intent of maintaining the practice while also referring tax clients for asset management opportunities. The firm acquired a single practice that contained tax and asset management clientele.

Additionally, the senior advisor provided the small end of his client book to the junior advisor The junior advisor now knows how to manage and farm those relationship.  The junior advisor also  created a ritualized system for networking in the community. He has joined a philanthropic board, connected with mortgage brokers, and  devoted two days a month in a property and casualty insurance firm.  Within the P&C firm, the advisor is viewed as financial planning and 401k expert.

Additionally, the firm hired an administrative staff member to ease the advisor’s workload and to oversee the CRM data entry and client service workflows.

With consistent growth strategies, the firm reached $70 million AUM by the end of 2018.

CASE STUDY 3 – Automation and Touch

In 2013, On3 Strategies started working with a financial advisory and insurance firm based in Columbia, Maryland. Although the 11-year old firm managed

approximately $40 million dollars with another $100K in premium revenue per year,the practice had reached a plateau. The advisor and his assistant shared the responsibilities of running the business and they found it difficult to prospect and service all the clients. The advisor worked for a well known life insurance company, financial planning and asset management were secondary product offerings. The systems and technology within the company were almost exclusively designed to help sell insurance products. He received little support around practice management for financial planning businesses.

The advisor engaged Erik Sauer and On3 Strategies to add executive-level experience and
 guide the practice into the future with a clear design.  Erik saw that the firm needed the most help with financial planning and recurring revenue/ asset management space. The plan to bring the firm to the next level included five components:

  1. Choose and fully implement CRM & financial services technology to suit the business.
  2. Completely organize the firm data, including client info, prospect info, and centers of influence (COI). In this instance, it was necessary to “give” away, cut off, or send to the home office hundreds of clients that were no longer of value to the practice, Design consistent investment models.
  3. Design a consistent growth strategy focused on prospecting new clients, strategic partnerships and augmented by advisor prospecting and “farming” within existing the customer base..
  4. Clearly define the roles and responsibilities of the owners and staff for today and in the future.

This plan created more efficiency across all aspects of the business, with specific focus on organic growth and adding talented advisors to the practice.

Over the past 5 years, the practice resumed a growth trajectory, growing from $40 to $80 million AUM. A new CRM system organized and managed the data for clients, prospects, and COIs. A strategy built around the creation of strategic partnership emerged as the best way for the practice to grow. The advisor fostered eight to ten keycore partnerships. Each one brought opportunities for asset management to the practice.

As the firm grew also needed more assistance with clients and their associated workload., Erik helped created a repeatable method for successfully onboarding new employees to the business. Today, the practice consists of a senior advisor, a junior advisor, a licensed assistant and an outsourced financial plan writer.  

In 2019, they expect another senior advisor to join the firm and they will be able to hire an administrative assistant.  This addition will infuse another $30 million of AUM into the practice, bringing the total close to $110 million and growing.