Each month Financial Planner interviews a leading Financial Planner to ask him or her to share best practice from their business and the story of how they and their colleagues built their company. This month we talk to Steve Martin from Smart Financial Planning.
Financial Planner: Congratulations on winning Small IFA of the Year at the Money Marketing awards, why do you think you won and how do you feel?
Steve Martin: I feel very very pleased, it was apparent to all that I was very pleased on the night. I've thought for some time that we have a very good firm so it was nice to have that recognised. I think we won because we recruited two graduates and one modern apprentice last year who had no previous training in financial services. One now has their diploma, one is nearly there and one has just started the process. There aren't many firms out there who will hire fully-fledged trainees, train them up and expect them to pass exams first time.

FP: Your firm was one of the first Accredited Financial Planning Firms^TM, why were you so keen to apply for the recognition?
SM: Setting up the Accredited Financial Planning Firms initiative was the first major step the IFP had taken to create a group of firms who were identifiable as providing an outstanding Financial Planning service. I'd been keen for a long time for the IFP to do more to support Financial Planning firms and then it would have been hypocritical of me to create a big song and dance about it and then not join up. The firms on the register are the kind of firms who will be involved in the future of Financial Planning.

FP: Have you noticed any benefits yet from the accreditation and how do you intend to maximise the hard work put into achieving the accreditation?
SM: As yet we've seen no benefits at all from having the accreditation but we haven't done anything to take advantage of it either. You only get out what you put into it. I saw Accreditation as a necessity, something we needed to have rather than something we would get lots of benefits from. It's another of the flags and tags we have around the firm which make it easier for people to find us.

FP: You were one of the youngest CFP^CM professionals. How did you get into Financial Planning and how important has achieving CFP certification been to you?
SM: I was 29 when I got my CFP certification and although I'm now 36 I still think I'm on the right side of the curve. I think the average age for someone to get their CFP professional status is about 40. I decided to do it off my own back but my firm at the time agreed to sponsor me although I don't think they really knew what it was! Once I'd passed I went and told absolutely everyone that I was CFP qualified and that this was the one qualification that truly demonstrated what we were doing and that this knowledge would benefit clients. It was the most important thing I've done within my career without a doubt.

FP: How has your team changed since the launch of the business and what has the journey been like? How many clients do you have and what's the annual turnover?
SM: The firm started out as just my wife and I and we intended to run a small-scale operation. We'd have a small number of clients who we'd see at regular intervals, work part-time and then spend the rest of time abroad. It's now changed beyond recognition. We have 10 staff, we've recruited graduates on our graduate training programme and hired specialists in areas such as PR and marketing. It became clear running a small business is very, very difficult and I don't think the panacea I'd envisaged is achievable unless your clients produce a huge amount of revenue for you. We now have 250 clients with £60m in assets under management and annual turnover of £600,000.


FP: Smart FP offers Financial Planning for businesses as well as individuals, why did you decide to take this route? What are the main differences between the two?
SM: We were finding that many of our clients had businesses so we deal with them and their business as one rather than two separate entities. One of our staff members specialises in business consultancy so he deals with that side of things. The success of a client's business is absolutely paramount, if you take it out of the arrangement it could be a disaster. But if you understand enough about them and their business then you can understand and help them to sell their business for the amount they think it is worth. Business people are often more confident in talking about their business than their personal financial plan so we help them with their business first then their personal finances when they see the benefits to be gained.

FP: What are your most successful ways of sourcing new clients. Please give examples of what works most effectively?
SM: Most of our clients come to us via referrals from existing clients which is good because they have an idea of what we offer but it's something we do need to work on. I've been talking for a long time about setting up a seminar programme to support our existing clients and tap into a new stream of opportunities.
Our ideal clients are in their late-40s/early- 50s who have realised they are getting closer to retirement and want to know how to manage that transition. I get massive enjoyment from working with that age group as they have a clear reason for seeking advice and get massive benefits from it.

FP: What makes Smart Financial Planning different to other Financial Planning firms?
SM: I find it hard to answer this question without being critical of other firms. We offer exclusively holistic Financial Planning, it's an all or nothing approach, we give our clients everything or we don't work with them. If a client came to us and we gave them the full Financial Planning process then they went away and implemented it themselves, that would be fine (although I'd be surprised if they didn't want to extend it to an ongoing relationship at the end). But what we wouldn't do is invest a client's money without talking to them about their goals, their kids and so on even if they wanted to have an ongoing relationship.

FP: In terms of running your business, what software applications do you use (particularly in reference to Financial Planning and back office software) and what sort of internal processes do you run in brief to ensure everything runs smoothly? Do you have a weekly practice meeting, for example?
SM: We use Intelligent Office, Voyant, Finametrica, Moneyscope and Dropbox, every conceivable piece of technology that will enhance our client outcome. We like to think if our office was destroyed tomorrow, we'd just buy some more computers and carry on. Regarding staff, we hold daily discussions, weekly planner to team meetings, investment committee meetings once a month to review model portfolios, board meetings every quarter and also interim meetings about once a month.


FP: You are chairman of Manchester branch, how long have you been doing this and what benefits do you see from attending branch meetings?
SM: I've been branch chairman for two and a half years now. My first change was to move the meetings to a more accessible and central location. We were previously known as a North West branch which covered a vast area so we renamed it the Manchester Branch and started two other branches which meet in Preston and Chester. If my nearest meeting was in Carlisle, no matter how good the speaker was I still wouldn't travel all that way. I'd like to think we can spawn even more branches as demand increases.
When I took the role branch members were surveyed so people could tell me what they wanted on the agenda. However they weren't very forthcoming so I told them I'd base it on what I liked and hoped they liked it too which they seemed happy with. I've met so many CFP professionals in the area through the branch and now have massive awareness of my peers who I can call upon for help.

FP: What has been your greatest source of achievement in running your business and what are you proudest of?
SM: I feel proud that we are creating absolutely top drawer Financial Planners who will have fantastic careers advising clients, either with us, with another firm or on their own. When I started the firm I found there wasn't a single person in the industry who I wanted to recruit who I wouldn't be arguing with over doing things a different way. So I hired graduates who could provide a fresh pair of eyes for the firm and challenge us.

FP: Are you ready for the RDR changes coming up in 2013 and what effect do you think they will have on the profession?
SM: We've been ready for the RDR since we first opened the door of the firm and have operated on a fee-charging basis long before the RDR was even conceived. I completed my gap-fill last year and got my SPS from the IFP at Christmas.
Our graduates have completed their RO exams and our other Financial Planner is working on his gap-fill. I don't think the RDR will work out how the FSA envisaged it though and people will find a way to charge how they have always charged. The next step would be to have financial advisers qualified to degree-level in the same way as solicitors and accountants are to ensure that the competences are there for us.

FP: Many planners are concerned about the rising cost of regulation and other threats. What do you see as the main threats to your business?
SM: I don't think there are any threats to be honest, I'm a naturally optimistic person so only tend to see opportunities. We don't go into the more 'interesting' areas of investments so don't have major compliance issues. Levies and compliance are problematic and I do worry that for every firm that goes bust, that means one less firm to pay the levy for its failure. I don't think the Internet will be an issue as it can't replace the personal touch we provide.

FP: On a lighter note, are you ever mistaken for your namesake Steve Martin, the American comedian?
SM:No I'm not,I'm not as old as he is for a start! People always expect me to be funnier than I am though which can be annoying. The real Steve Martin is actually my wife's favourite comedian but I hate him.