Tips for Mitigating Inflation in a Financial Advisor's Business

Just as you may now consider rising inflation when adapting financial strategies for your clients, some financial professionals are looking to help ease the impacts of inflation on running their businesses.

Businesses in nearly every industry are feeling the pinch of higher prices. According to the Bureau of Labor Statistics, the all-items index for pricing continued to accelerate, rising 8.5 percent for the last 12 months, ending March 2022 – the largest 12-month increase since 1981*.

Simply put, financial professionals are business owners and increased prices for energy, office supplies, and other materials are reflected in their bottom line. If financial professionals have lost support staff because of the “Great Resignation,” recruiting those replacements also come with increased labor costs. So, what are some ideas for helping your business combat inflation?

• Review where you can lean into technology

Technology evolves rapidly, so there’s a good chance that since you last upgraded your financial tech stack, there are new innovations that can help you streamline and automate processes.

• Analyze your expenses vs. profit margins

While you may benchmark your business plan regularly, it might prove wise to review a snapshot of the past few months to see how inflation is impacting operations and where there is an opportunity to adjust.

• Keep the supply closet full

If you are back in the office now, stocking up on materials can help you save if prices continue to rise.

• Find new clients

You are always pursuing new prospects, but you may want to consider a renewed or different focus for growing your business. Perhaps you increase your marketing budget, host an event, or optimize your website for Search Engine Optimization (SEO).

How LPL Financial can help

“Whenever our advisors are facing challenges or simply want even more time to concentrate on their clients, LPL wants to be sure advisors are aware of all the resources at their disposal,” said Matt Audette, LPL Financial’s chief financial officer. “We’ve developed a real matrix of support, so if our advisors are looking for ideas to help battle against inflation, we want them to brainstorm with us so we can demonstrate our commitment to advisors again and again.”

LPL representatives are always available to review your options and point you to the resources that can best help you adapt your business to the current economic environment.

Need to improve efficiency?

The LPL Financial Service Center is your go-to for all operational issues.

Need to attract new clients?

LPL Marketing Consulting specialists are just a phone call or email away, offering complimentary in-depth consultations about how to build and execute your marketing strategy.

Need to get bigger?

LPL’s M&A Solutions team provides turnkey expertise to help you enhance your position as a qualified buyer, guiding you at every step of the process, including navigating financing.

Need all this kind of support, but have enough on your plate?

LPL Services Group provides solutions that help build and run an extraordinary business. This suite of professional services is designed for financial professionals:

• Admin Solutions

If staffing is a problem for your office, LPL Admin Solutions can help screen, hire, and train an administrative professional to take care of many of your office’s operational tasks, saving you up to 40% on hiring expenses.

• Marketing Solutions

Get a go-to marketing consultant to create, plan, and execute your unique marketing campaigns and digital marketing strategy. LPL financial professionals using this service have seen an increase in web traffic of up to 90%.

• Business Strategy Services

Team up with a skilled business strategist to provide tailored insight into your operations model to help create more efficiencies – and profits.

Need more ideas for helping you run your business?

Talk with your LPL representative today.

^{*Source: New Release, Consumer Price Index – April 2022. Bureau of Labor Statistics, U.S. Department of Labor, 5/11/2022}

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