May 29, 2023
Whether you're an established RIA or just starting, understanding which of your services is the most profitable can be a game-changer for the growth and direction of your firm. However, you must also view your services through the greater context of Client Lifetime Value (CLV). This simple metric could change your whole perspective when it comes to your profitability by service.
this episode, I dive deep, looking at the many layers that
determine each practice's best pathway to profitability. From the
impact of CLV and time investment to direct and indirect expenses
that could be eating into your profits, this episode will help you
discover whether you're firm is truly focused on its most
profitable services. Finally, I'll give you some practical tips for
changing course, should you determine you've been heading in the
This week on The Financially Simple Podcast:
(1:13) The Productivity Paradox
(4:27) Define Your Success
(6:34) Resources Allocated Per Service
(8:34) Concentration Risk
(10:05) Lifetime Value for Each Offering
(12:11) Average Revenue Per Client
(13:11) Direct Cost Per Service
(14:52) Time Per Service
(23:02) Begin Implementing
Our Favorite Quotes:
"Why can't we be profitable with each offering? If we're going to make an offering, do we really want it to lose money?" - Justin Goodbread
"Implementing a strategy is going to cost you. It's going to cost
you money. It's going to cost you time." - Justin
About The Financially Simple Podcast
If you are looking for a podcast that speaks directly to the challenges and puzzles of running a business, you’ve come to the right place. The Financially Simple podcast was built for you. With over 400 episodes and counting, our host Justin Goodbread covers a broad range of topics, from starting a small business, to prepping it for sale, to growing your personal wealth. Justin’s combination of analytical skills, tough love, and a healthy dose of experience delivers practical ideas that will benefit business builders at every stage of their business journey.
If you have questions, or comments for Justin, submit those at: https://financiallysimple.com/ask-justin/
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Financially Simple is a division of WealthSource Partners, LLC (“WSP”), which offers investment advisory and financial planning services. All investing involves risk of loss, including the possible loss of principal. Past performance does not guarantee future results and nothing in this podcast should be construed as a guarantee of any specific outcome or profit. All market indices discussed are unmanaged, do not incur management fees, costs and expenses, and cannot be invested into directly. Business planning services offered by WealthSource Business Advisors, LLC (“WBA”).
This podcast is distributed for informational purposes only. The content of this podcast represents the views and opinions of Justin Goodbread and/or the podcast’s guests and do not necessarily represent the views and/or opinions of WBA, WSP or their affiliates or representatives. Statements made in this podcast are subject to change without notice. Neither WBA, WSP or their representatives, the podcast’s hosts or its guests have an obligation to provide revised statements in the event of changed circumstances. Statements made in the podcast are not to be construed as legal or accounting advice or as personalized advice of any nature. Listeners should conduct their own review of any statements made or strategies discussed and exercise judgment or consult with their own professional advisor to see how the information contained in this podcast may apply to their own circumstances.