Each month Financial Planner asks a leading Financial Planner to share best practice and discuss their company. Ruth Sturkey CFP^CM tells how she built up IFP Accredited Firm Red House Consulting, 
a substantial boutique Financial Planning business.

Financial Planner: How did you get into Financial Planning and what attracted you to the profession?

Ruth Sturkey CFP^CM: Like many of my vintage, my arrival in Financial Planning followed a rather circuitous route - from nursing, to pharmaceutical drug sales to selling motor vehicles and finally entering into the financial services sector as a mortgage broker in the early 1990s. I then spent a couple of years with Standard Life. This was effectively in direct sales working their old Halifax endowment client bank. This took me to less than salubrious parts of the north east and it was a tough initiation but at the same time it was also great sales training. I worked as an IFA from 1994 before I stumbled across Financial Planning proper in 2007 when I took my CFP^CM crash course. What an eye opener that was. I went from believing that I knew how to provide advice and how to write a financial report to suddenly discovering that I could provide answers to questions that previously I had not even known how to articulate let alone answer.

FP: Can you tell us some more details about your firm? What sort of a company is it and what services does it offer? Does it specialise in particular clients or services?

RS: The Red House is, by design, a boutique Financial Planning firm focusing on a select number of wealthy clients who get what life is about.
When we set up the business we identified three key client attributes; firstly clients who had investable assets of over £1m or the earnings to ensure they would soon get there, secondly that they wanted what we offered and were happy to pay our fees and thirdly that we liked and admired them.
In reality our firm provides much more than purely wealth management. To our clients we are their financial guides and confidants and the feedback we get indicates that the value we provide cannot be measured in monetary terms alone.
We don't specialise in any specific sector but all of our clients have a certain 'x factor'.
What I mean when I say this is that they are interesting and successful people with strong core values and a desire to delegate the management of their wealth to us.

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FP: What have been the key lessons you have learned in running your firm and what tips would you pass on to other planners?

RS: The tips and key lessons would be as follows. I would advise that you treat all of your clients and colleagues as you would wish to be treated yourself. If you say you are going to do something then do it, on time, every time. It sounds obvious doesn't it? But the challenge is to do exactly that, every time.
As the firm has grown this has meant that we have had to create effective processes, which everyone understands and follows. Creating simple processes that are easy to follow ishard. For us it is a constant work in progress.

FP: How has your team and company changed since the launch of the business and what has the journey been like? How many clients do you have and what is the annual turnover?

RS: My co-founder Gareth Marr and I launched the Red House in 2007 supported from day one by our operations director Linda Whybrow. There were three people working in a basement, no clients but there was a clear vision of what we wanted our business to look and feel like. Seven years later I am pleased to say we are above ground.
We survived and made profits during the worst financial crisis in living memory, dealt with the serious ill health and retirement of Gareth and have grown to a team of six. We now manage the financial affairs of about 70 clients with a turnover in excess of £800,000.
To be successful means that everyone in our team needs to understand clearly the role they play. The analogy we use is that of a football team. We have the advice team in attack and the ops and admin team in defence. Everyone's role is vital and none of us can achieve the best for our clients, the company and ourselves without the support of each other. To that extent we are a meritocracy.

FP: What has been your greatest source of achievement so far in running your business and what are you proudest of?

RS: The thought of setting up and running my own business was always a really scary prospect to me. However, in 2006 I found myself bemoaning my then employers and feeling that I could run a business better than my then directors. I also recognised, however, that at least they had the guts to put their heads above the parapet to manage a business. I got to thinking to myself – 'Ruth, either do something about it or shut up', closely followed by what's the worst that can happen?'
We established The Red House in the belief that there was a better way of looking after clients and engaging with our colleagues.
The feedback and evidence we get suggests that we are doing this but this is not a given.

FP: Many planners are concerned about the rising cost of regulation and other threats to their businesses. What do you see as the main threats to your business?

RS: Regulation is with us to stay and represents just one of the costs a professional business must bear. The costs of running a Financial Planning business and the threat to profitability generally should not be underestimated.
I see two main threats; the first is the attraction and retention of high quality talent. This is why we spend a considerable amount of time on the recruitment process which includes at least two interviews, a technical test and a 'meet the team' drinks session; we also allocate time and budget to develop and train our team. Everyone has a one year and three year personal development plan and all team members have quarterly one to one meetings with their mentors. We have recently hired a HR consultant to help us refine our appraisal process and remuneration package.
The second is the need to attract younger clients who will become our millionaires of tomorrow. This will provide longevity and value to our business.

FP: Do you use social media such as Twitter much for your business? If so what has it added to your business and how much tweeting do you do on a typical day?

RS: I am a sporadic tweeter, although we have recently started a regular blog. This goes to our clients and centres of influence. We need to get more social media savvy. The use of social media is central to ensuring we communicate with our clients and future clients in the way they wish to be engaged with and spoken to. This will be a project for 2015.

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FP: If you could change anything about the Financial Planning profession what would you choose?

RS: I would choose to explain to the FCA that the focus on terms such as 'independent' and 'restricted', and the variable definitions of each, is missing the point. It seems to me that the term 'independent' is largely redundant and that 'restricted' just spells inferior in the public's eye.The reality is that no one individual can know everything and it is increasingly important that individuals and firms specialise.
The FCA's focus should be on making sure that firms clearly articulate what it is they do, what they do not do and how they will charge for their services. The benchmark for quality should be Certified, Chartered and Accredited with the awarding bodies having teeth and resource to police this, although I accept this is not easy and would be an extra burden for the IFP.

FP: What's the future for Financial Planning and what are the major challenges going to be in coming years for the profession generally?

RS: The future is good as Financial Planning gets greater recognition for the good that it does for individuals, families and society as a whole. The clear articulation of the benefits of a long term relationship with a Financial Planner is the challenge that I see. The historical link with product sales needs to be broken once and for all. This is where we all have a role to play in getting the message out and participating in IFP initiatives.

FP: We recently saw the 1,000th CFP Professional. Do you think the profession is going to attract lots more people in the coming years and why? What sort of numbers would you estimate by 2020?

RS: The profession is young and our challenge is to attract a greater graduate intake away from the traditional professions of law and accountancy. We also need to spend time educating the professionals we work alongside to demonstrate the benefits to our mutual clients of a cohesive team. Financial Planners are uniquely positioned to be the conductor of that team.
Financial Planning is an incredibly rewarding and satisfying profession to be in, few other professions get as close to their clients as we do. What a privileged position it is to be regularly told that we bring peace of mind and order to our clients' complicated lives. It is really difficult to estimate numbers by 2020 but I will take a stab at 2,000 CFP^CM Professionals.

FP: What do you do in your spare time? RS: I live in London and so I am utterly spoilt by the array of culture, food, sport, theatre and film that is available. It sounds sad to say but I can get excited just reading Time Out magazine and learning about all the things I could do, even if I don't do them.
My favourite thing however is a session of exercise followed by just being with my friends and family and every now and then I escape to the beauty of the north Devon coastline where I was brought up.

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Key Points

1. Do not try to be all the things to all the people. Instead, know what you are good at and stick to it.
2. You should treat your clients and colleagues as you would wish to be treated yourself.
3. If you are not enjoying it, then there is something wrong. You should not procrastinate, identify the reason for it and solve it.

My Business Day

07.00 – bus or cycle to the gym for some exercise to get my endorphins circulating and keep gravity at bay.
08.30 – to the office for breakfast and a chew over the day ahead with my team.
10.30-15.00 – client meetings, often to include lunch
15.00-17.00 – reviewing client reports and catching up with the team.
18.00 – a networking event or dinner, theatre or drinks with friends followed by the bus home (favourite seat, front right)

Biography: RUTH STURKEY CFP^CM

Ruth co-founded Red House Consulting, an IFP Accredited, in September 2007. She is a CFP^CM Professional and Chartered Financial Planner. Following the recent retirement of her co-director Gareth Marr, as managing director she now leads the Red House team. Ruth lives in north London and spends her free time living a "very fortunate life" surrounded by friends and family.
She enjoys exercising in her free time and spending time with friends and family. She likes visiting the north Devon coastline, where she was brought up, when she has a chance.

This email address is being protected from spambots. You need JavaScript enabled to view it.

www.theredhousefp.com
 
020 7269 7961

@RuthSturkey