Each month Financial Planner asks a leading planner to share best practice and how they built their firm. In this issue we talk to Dan Woodruff CFP^CM who set up Woodruff Financial Planning in 2003 in Colchester, Essex.

Financial Planner: How did you get into Financial Planning and what attracted you to the profession?
Dan Woodruff CFP^CM: Originally, I studied for a Law degree and then the Diploma in Legal Practice - the vocational training necessary to become a solicitor. I left university in 1996 at the end of a difficult recession. Many legal practices were cutting back on trainees, so competition for training contracts was intense. I got a job with a life company as a way of paying back the loans, always intending to go back to law. Once I started in the industry I never left. Later I set up my own practice as an IFA. I quickly realised that Financial Planning rather than traditional product-focused financial advice was the way forward. I felt that a focus on products missed the bigger picture for clients.

FP: Can you tell us about your firm? What sort of a company is it and what services does it offer? Does it specialise in particular clients or services?
DW: The core service is Financial Planning, backed up with investment management and then financial advice on products. We split our services into these three areas, and segment clients according to their service needs. The Financial Planning service is built around Lifestyle Financial Planning very much as the IFP would expect. Investment management focuses on managing the clients' investment portfolios with regular reviews and updates. Financial Advice is done on a transactional basis with a fixed fee depending on client need. Clients can choose the level of ongoing service according to their needs and budget. Our model is designed to build an increasing recurring income in exchange for regular service to clients.
Our target markets are split into four main areas- business owners of established family businesses; pre/post retirees with comfortable lifestyles and want to manage their assets; those who have some sort of life change (divorce, illness, inheritance); professional high earners and trustees.

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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?
DW: When I started, I was technically proficient in Financial Planning but was lacking in the skills necessary to run a business well. It was only when I recognised this fact that I could start to address it and now we are moving forward rapidly as we build on the core competencies needed for all businesses. This includes systems and processes, focus on key performance indicators, marketing, sales, training and leadership. In general, I see many Financial Planners as competent self-employed consultants. This is perfectly fine for many people. However, in my case I wanted to build a business and so have had to devote my attention to building my skills in the areas identified. In general, I would recommend that your business should be built around obvious things such as a great client experience, repeatable and compliant processes, good marketing, and profitable use of your time.
FP: How has your company changed since its launch and what has the journey been like? How many clients do you have and what's the annual turnover?
DW: I started as a self-employed adviser working on product-based commission sales. I quickly realised that cash flow was the key to a successful and saleable business and so converted to a recurring service and income model. Since the start we have converted to fees (well before RDR), and have built our business and team around repeatable processes and service.
Currently, there are three team members, with plans to add a fourth this year. We outsource a number of functions, which allows us to keep staff costs down; we also utilise technology to the full. We work with around 50 regular clients.
FP: What has been your greatest sense of achievement so far in running your business and what are you proudest of?
DW: I think all Financial Planners get great satisfaction from helping clients to see that they are secure, and then helping them to live the life they really want. For me, the biggest successes are when I can help people to change their focus from accumulation to actually enjoying their assets.
We have also used our business to make a real difference to the local community. We are heavily involved in running Colchester Carnival, which is a large community event attended by 12,000 people last year. This is a big event for our town and gets great participation from the local community. I would never have had the confidence to launch this event had we not been working on building our own business. It just goes to show what can be achieved with a vision and dedication.
We won a local business award in 2013. This shows how we are growing as a business, and all helps to demonstrate how we are moving forward.
I have built my own profile locally, including a regular slot on BBC local radio, as well as appearing in various publications. I am currently writing a book on Financial Planning, so perhaps that is the next achievement.

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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?
DW: There will always be threats to our business from regulation since this has such a drastic impact on us. However, I do feel that the new regulator has been trying to be more reasonable to smaller practices. The cost of doing business in a regulated profession is a serious issue but can only be addressed by focusing on delivering service at a profit. We take the view that there are enough clients of the right profile for us. We do not need to appeal to everyone – just those who want and value our service, and who are prepared to pay the price we set.
I would prefer to see the pace of change slow down a little. Ideally, I would like to see a fairer way of dealing with the issue of the FSCS, as well as a long-stop on complaints. Competition is an issue, but I do believe that there will be a gradual erosion in adviser numbers as the profession struggles to deal with the realities of selling services for a fee rather than a commission. Consumers will get more savvy about this over time, which will make it more difficult for old model advisers to trade.
FP: Do you use social media such as Twitter much for your business? What has it added to your business and how much tweeting do you on a typical day?
DW: We use Twitter, Facebook, LinkedIn and Google+. Social media is a way to build our profile and to be seen as thought leaders to a degree. This is all part of the general marketing mix and helps in a number of ways. It keeps you in touch with clients and prospects, and can lead to opportunities. I often get approached by journalists as a result of my presence online. I can point to prospects and clients who have all used our social media posts as part of their decision making process towards becoming a client. I like Twitter because it allows for a direct conversation and exchange of views. On a typical day I would post 4-5 times.
FP: If you could change anything about the Financial Planning profession what would you choose?
DW: I would like to stop the term Financial Planning being used by just anyone. You see it used in adverts by the big banks, and you see it mis- used by every IFA. Ideally, I'd like to see the term protected in some way, so that only those who sign up to a certain process could use it. Failing that, significant education needs to be done by all of us to ensure that the public knows how to differentiate between Financial Planning and other advice services.
Nearly every new client I meet has had a relationship with a financial adviser in the past, but most of them have not heard from their adviser for years. This will hopefully stop as the RDR takes hold, but really gives our profession a bad name.

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FP: What's the future for Financial Planning and what are the major challenges going to be in coming years for the profession generally?
DW: The profession is growing as the public gets to understand what we deliver. Financial Planning is what people really want rather than products. Who cares about pensions or Isas? What people really want to know is whether they will be secure in the future, and if they can live the lifestyle they want. The products are only a (necessary) vehicle to get them where they want. What Financial Planning brings to clients is the ability to put their lives into focus, and to visualise their options in a way that helps them to make decisions. I expect the profession to grow, but I cannot see us becoming the dominant delivery mechanism for financial advice over the next decade. The challenges of now will continue to be there in the future: regulation, legislation, pressure on fees, regular financial scandals, and alternative business models from the internet.
FP: We recently had 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?
DW: In some ways I see adviser numbers reducing, while CFP numbers should continue to grow as the move towards professionalism continues. The average age of advisers is still quite high, which suggests there'll be a reduction in numbers as these retire. We need to work at building a career path for the profession. Without this, there is a danger that adviser numbers will dwindle. This is an opportunity of sorts for those who remain.
FP: What do you like doing in your spare time outside of work?
DW: My spare time is spent with my family – I have a six-year-old daughter. I get involved in the local community through Colchester Carnival and membership of Colchester Round Table (a charity and social organisation).
We regularly visit France as my wife is French. Other than that I like to keep fit at the gym. I am also into self-development and am always reading business books and listening to podcasts in the car on my way to work.

Key Points
1 Work on building your business skills as well as technical competence. This 
will help you to drive business growth as well as passing exams. Too many Financial Planners forget to work on their business, which can hold them back.
2 There will always be 
threats to our business 
from regulation, legislation and challenges like the internet. We need to adapt to be able to thrive.
3 Financial Planning is here to stay and will 
be the benchmark for professionalism in the future.

My Business Day
My day either starts with a visit to the gym at
 6am, or by taking my daughter to school. At
 the office we open with a short team meeting 
to discuss client issues, work in progress, and development of key projects. Depending on the 
day I will either work on client issues: meetings, reports and advice; alternatively, my focus will be on marketing and sales for the business: developing leads, dealing with professional contacts, writing articles, or building marketing materials. My journey to and from work involves listening to self-development podcasts as this helps me to develop ideas to push the business forward.

Biography: Dan Woodruff CFP^CM Founder of Woodruff Financial Planning

Dan is the owner of Woodruff Financial Planning and is a Certified Financial PlannerCM professional. He is a graduate of Cardiff University, where he obtained a degree in Law, and Nottingham Law School, where he completed the postgraduate training to be a solicitor. He worked for two large insurance groups and then set up Woodruff Financial Planning in 2003 in Colchester, Essex, where he lives with his wife and daughter. Dan is responsible for Financial Planning matters with clients who include business owners, professionals and investors. Dan is currently part of the Colchester Carnival organising committee.

This email address is being protected from spambots. You need JavaScript enabled to view it.
01206 266882 @danwoodruff
www.woodruff-fp.co.uk