Ep 356: Scaling To (Nearly) $2M Of Revenue As A Flat-Fee, Advice-Only Firm, With Sarah-Catherine Gutierrez
Oct 24, 2023
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Sarah-Catherine Gutierrez, founder of Aptus Financial, shares her successful approach to building a flat-fee, advice-only firm. Topics include sustainable marketing systems, transparent fee structure, efficient onboarding process, tailored cashflow strategies, and unique marketing approach.
Sarah Catherine Gutierrez successfully built a fee-only, advice-only firm, challenging the reliance on AUM.
Aptus Financial employs an efficient onboarding process to convert prospects into fully-informed clients in just two calls.
The firm emphasizes customization, goal alignment, and automation, providing clients with a comprehensive financial planning experience.
Deep dives
Sarah Catherine Gutierrez's Unique Approach to Building a Successful Financial Planning Firm
Sarah Catherine Gutierrez has successfully built a multi-advisor firm, Aptus Financial, despite the common belief that scaling without AUM is not possible. She operates as a fee-only advice-only firm, focusing on building sustainable marketing systems to eliminate the need for advisors to prospect. Sarah Catherine transparently communicates her value by pricing her financial planning fees within a range specific to recently graduated physicians. She also emphasizes building trust-based referral systems and uses an efficient onboarding process to convert prospects into fully-informed clients in just two calls. Sarah Catherine has segmented her planning fees by charging an upfront fee for the first year plan, followed by a lower year-over-year fee for ongoing service, along with an additional end-of-year annual review fee. She has also developed custom financial planning spreadsheets and cash flow management plans tailored to the specific needs of her physician clients planning for early retirement. Despite the challenges of scaling the advice-only model, Sarah Catherine's determination, neutral marketing approach, and automated financial planning systems have led her to build a successful firm with over 480 client households approaching $2 million in revenue.
The Step-by-Step Process of Aptus Financial's Financial Planning
The financial planning process at Aptus Financial involves two meetings. In the first meeting, clients provide comprehensive data on their financial situation and goals using a data gathering spreadsheet. Through an in-depth discussion, the planners review and refine the data, addressing any inaccuracies or missing information. This meeting also focuses on goal setting, ensuring alignment between the client's objectives and the planning process. After the first meeting, a draft report is sent to the client, outlining the proposed financial plan and action items. In the second meeting, the planners address tax efficiency, investing, and automation. They educate clients about tax strategies, investment buckets, and guide them in setting up the necessary accounts. Automation is emphasized to ensure consistent contributions to savings and investment accounts. By the end of the second meeting, a finalized financial plan is presented to the client, along with an investment policy statement, with clear instructions and priorities for implementation.
Aptus Financial's Unique Cash Management System
Aptus Financial utilizes a unique cash management system inspired by the first step cash management approach. Clients are guided in setting up multiple savings accounts, or 'squirrel funds,' for future expenses such as emergency funds, home repairs, and gifts. Automation is a key component of the system, with clients scheduling regular transfers into these accounts. Clients are also taught to automate bill payments and achieve consistency in monthly expenses. The remaining funds are allocated for discretionary spending. This comprehensive cash management system ensures that clients prioritize their savings goals, accumulate adequate reserves, and maintain a balanced budget. By automating these processes, clients can effortlessly track their progress toward financial objectives.
The Success of Aptus Financial and Sarah Catherine Gutierrez's Unique Approach
Aptus Financial, led by Sarah Catherine Gutierrez, has achieved remarkable success by challenging the conventional belief that scaling without AUM is impossible. Sarah Catherine's focus on fee-only advice-only services, sustainable marketing systems, and transparent pricing have allowed her to build a multi-advisor firm serving hundreds of clients. The firm's unique approach emphasizes customization, goal alignment, and automation, providing clients with a comprehensive financial planning experience. By leveraging cash management systems and educating clients about tax efficiencies and investments, Aptus Financial empowers clients to become active participants in their financial success. Sarah Catherine's dedication to neutrality in marketing and providing high-quality financial planning without the need for constant prospecting has enabled the firm to flourish and generate significant revenue. With a strong focus on client trust, professional expertise, and efficient processes, Aptus Financial sets a new standard for success in the advice-only financial planning model.
Providing investment advice without managing assets
The podcast discusses how the firm provides investment advice to clients without directly managing their assets. The advisors create investment policy statements and treat themselves as if they are investing the clients' money. They offer actual investment advice and guidance, although they do not hold the assets themselves. The firm focuses on providing value through their advice and charges a flat fee for their services.
Engagement and tracking client progress
The episode explores how the firm engages with clients and tracks their progress. The advisors have regular check-ins with clients every couple of months, which can be in the form of meetings or quick emails. They have a comprehensive checklist and use planning software to track and manage client tasks and interactions. The firm emphasizes the importance of nudging clients to take action and ensure they are making progress towards their financial goals. The episode also highlights the importance of referrals and speaking engagements as effective strategies for bringing in new clients.
Sarah-Catherine Gutierrez is the founder of Aptus Financial, a fee-only financial planning firm based out of Arkansas that is nearing $2 million in revenue for 480 client households. What stands out about Sarah Catherine is how she has built a multi-advisor, flat-fee, advice-only firm, challenging the industry's common reliance on AUM. Her success is attributed to sustainable marketing systems that allow advisors to concentrate solely on efficient financial planning, free from the distractions of client prospecting.
Listen in as Sarah-Catherine shares her strategic approach to transparently communicate her value through her financial planning fee structure and the creation of a trust-based Center of Influence, which eliminates the stress of prospect acquisition. We also discuss her efficient onboarding process that transforms prospects into clients within just two calls, her decision to segment planning fees, and the inspiration behind her custom financial planning spreadsheet. You'll hear about her tailored cashflow strategies for new physicians, her journey in trusting her instincts as a founder, and the ways her unique marketing approach has opened doors to speaking engagements and fresh prospect avenues.