Understanding how your business compares to your marketplace peers can provide a critical perspective to your planning process. As Peter Drucker once put it, “Only outside a business are there results, opportunities and threats.”
It’s for this reason that Business Health has been delighted to be a part of the Advisely initiative and has appreciated the opportunity to provide practical, meaningful support to the advice community.
One particular area where we’ve strived to deliver value is through our data, which has been largely derived from Australian advice firms completing at least one of our unique business diagnostics. By consolidating results, we’ve been able to develop a set of Australian advice firm benchmarks and profit drivers, and we’re excited to see them underpin the new Advisely Profit Booster tool.
Powered by Business Health data, the Profit Booster instantly identifies the most impactful actions a business owner can take for maximum profit uplift. Covering clients, staff and business, the tool allows owners to compare their practice against other advice firms.
Completing the Profit Booster will provide advice practices with:
- an awareness of what their colleagues and peers are (or are not) doing
- an insight into how they could be performing and what they can learn from better-performing practices (and what pitfalls they can avoid from poorer-performing ones)
- an understanding of their biggest contributors to profitability and what steps they can take to implement plans, supported by Advisely’s library of “how to” support material.
So, how can you get the most out of this new tool?
1: Start now
While there’s probably no wrong time to test your business, there will always be a really good time to do it – and that time is now! It will only take a few minutes and you’ll learn so much.
2: Don’t gild the lily
Ensure the data you input is accurate, current and honest. If your own data is somewhat unreliable, you could be creating a minefield of misinformation for yourself.
3: Keep an open mind
Remember that this data has been contributed by people just like you – people who’ve shared what and how they’re managing their practice.
While you’ll receive your results for nine key profit drivers, our experience suggests some will be more relevant than others for you today. Begin by focusing on the KPIs most relevant to you and your business right now.
Also, don’t beat yourself up if your results are down on your peers – the good news is that you now know, with some certainty, how you compare. And, courtesy of Advisely, there’s plenty of help available.
4: Commit to implementation
Armed with your Profit Booster feedback, the real question becomes, “What should I do about it?”
As we wrote recently – and to paraphrase the words of famed AFL player, coach and all-round inspiring Australian of the Year 2025, Neale Daniher – “when all is said and done, more is said than done.”
It’s time to commit to action, share your results with your people – including your B/PDM, coach, mentor, and whoever you turn to for advice and guidance – and then decide your response and the steps necessary to implement. Document those steps, incorporating them into your business plan, and then do it!
Sounds simple, we know, but our latest analysis reveals that just one in four Australian advice firms have documented their business plans for the next 12 months.
5: Ignore the “not nows”
It’s our hope that every practice will invest a few minutes to complete a Profit Booster for their own business. It’s simple, quick and informative, and there’s no right or wrong outcome.
Don’t let the following excuses distract you from boosting bottom-line profitability:
- “My business is different, so I won’t be able to compare it to any other”: Maybe it is, but there are some common drivers of success across all business models.
- “I’m happy with my progress right now”: Ignorance can indeed be bliss, but not forever. Maybe you’ll pick up some tips to make it even better!
- “I don’t have the time”: Really? It will take you less than five minutes.
- “I might need help interpreting my results and deciding what to do”: Advisely has a host of support material available that is free for all users of the Profit Booster tool and we (Business Health) are always available to help.
- “I don’t have ready access to all of my recent business data”: You don’t need it! To complete the Profit Booster, you don’t need any of your business financials or even have access to the P&L or business balance sheet.
Let us know how you go – we’d love to hear from you.
For your consideration.
Advisely Partner
