Greenslade looks to establish franchise network
Wednesday 4th of November 1998
Small and medium sized financial planning firms will have trouble surviving in the future, Wealthy and Wise principal David Greenslade says.
Firms like his, which has nine advisers and pulls in about $30 million in funds a year, need to significantly expand to survive.
"Our organisation won't survive into the future. I need millions of dollars poured into my organisation to take it to that next step," he says.
Greenslade says he is looking to establish a nationwide, franchised chain of advisory firms to move forward. This network is likely to have the backing of a major funds management firm as the buyer of last resort, he said at the recent New Zealand Financial Advisers conference.
Greenslade says as the marketplace become more competitive, and firms start to look the same there is a need for brand dominance. Successful firms will need to be part of a national if not global network, he says.
Firms that join up with his proposed chain will have benefit from a strong brand and marketing campaign, they will have access to technology and business systems.
Greenslade says technology will be a given for planning firms and the key to success will be in the marketing and relationships.
The chain will target baby boomers and will be suited to people who want to grow their businesses.
Greenslade believes franchising, while not new to financial planning, is the way forward.
When asked why he is going down this track he says: "I have always had the philosophy that if you are not constantly moving ahead and right up at the forefront some young whipper snapper is going to come and bite you in the backside and you are going to start falling behind.
"You can never stop in this industry. You have got to keep going faster than ever before," he says.
