Each month we speak with a leading Financial Planner to ask them to share best practice and how they built their company. This issue David Norton Award 2014 runner up Huw Jones CFP^CM talks about how he developed Proposito into a formidable Financial Planning firm.

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

Huw Jones CFP^CM: After graduating from Cambridge University and taking a PGCE, I became a teacher. I'd been doing that for four years when my father, Richard, set up as an IFA in Cardiff. I wanted more control over my future and career so jumped at the chance to try something new. Like most advisers at the time Richard was a traditional IFA. I soon realised that this business model didn't enable the provision of a good ongoing service for clients, so we began the transition to Financial Planning.

FP: How long have you been in your current role and what year did you start your firm?

HJ: Richard set up in 1998. I joined in 1999 and became a Financial Planner in 2001. The business moved from sole trader to partnership in 2001, and in 2011 we rebranded as Proposito Financial Planning, partly in anticipation of Richard's eventual retirement. In 2012 we became a limited company.

FP: Can you tell us about your firm? What sort of a company is it and what services does it offer? Does it specialise?

HJ: Proposito offers one service: Financial Planning, but it wasn't always so. Originally our main method of remuneration was commission but this didn't sit comfortably with me – how could we offer a truly valuable, ongoing service to clients, when our focus was on new business? In 2001, we took on our first fee-paying client and removed any residual scepticism that clients wouldn't accept fees. That was a light bulb moment and the start of our journey as Financial Planners. Now we could deliver tangible benefits to clients over the long-term, and by 2005 we had become 100 per cent fee-only. Our key proposition is that we see every client, every year, because what delivers real value is long- term Financial Planning. Our service is particularly valuable to clients approaching, or at retirement.

FP: What have been the key lessons you have learned at Proposito? What tips would you pass on?

HJ: I think the biggest lesson has been to focus on progress not perfection - Rome wasn't built in a day, but some of it was. So rather than trying to get everything perfect before you start, just do something – take that first step. I think it's important in developing the business to have an eye on both ends of a project's timeline. You must have a clear picture of the end game and the steps needed to achieve it. At Proposito, by creating a vision of where we want to be, we have been able to determine the next action that must be completed to move us closer to it.

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FP: How has your team/company changed during your time there and what has the journey been like? How many clients do you have and what's the annual turnover?

HJ: It started with Richard, then there were the two of us. In 2006, we moved the business from Cardiff (still retaining a large client base in South Wales) to North Wiltshire to be nearer to family. In 2008 we took on a Paraplanner and an administrator, enabling us to spend more time with clients and on developing the business. Last year, we appointed a financial administrator who has taken on much of the day-to-day responsibilities.
The journey has been eventful – even hairy at times. It's exciting now because we have got the business in a great place, we are providing a great service and we're on the verge of growth; we're attracting the right sort of clients, and know where we are going and what we are doing.
We have 130 clients (couples or individuals) and turnover is expected to increase by 10 per cent for the current trading year.

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

HJ: Personally, it was attaining CFP^CM professional status. I never thought it would be easy, but it took significantly more time than I had imagined. I learnt so much from it, and it gave me many ideas about developing the business. From a business point of view, there are achievements every year. One recent innovation was giving the team more responsibility. Until we made this change, I headed up all the different functions but now everybody has a leadership role as well. So although everybody is doing their traditional jobs, everybody has responsibility for making decisions on behalf of the company. In order to do that we've written a plan of what we stand for and where we're heading, where we want to be in three and ten years. This has made it possible for everybody to make decisions because they know our goals.
We've received some external recognition too. As well as being shortlisted for the Small IFA of the Year at the Money Marketing Awards in 2013, we were third in the IFP's David Norton Building Excellence Award in 2013 and runners up in 2014. The whole team is immensely proud of these achievements.

FP: What has been the biggest hurdle or challenge to overcome for you personally in your career and for the company itself?

HJ: Within the company, I think this has been juggling the requirements of working both in the business and on the business. However, by handing over some responsibilities to the rest of the team, my time has been freed up. Richard is planning to retire, so part of this restructure has been focused
on how the business will carry on firstly without him, and secondly without me as I will be spending more time with clients.

FP: What differences have the Budget reforms to pensions and retirement made so far to your business and how do you anticipate these will impact on you as the changes take effect in 2015?

HJ: I think there will be a massive increase in the need for proper Financial Planning. People will have the power to take as much money out of their pension as they want, but this brings the risk that, without Financial Planning, they won't appreciate the potential impact on their retirement income. Whether people then seek advice is another matter. Educating people that they should get Financial Planning advice is something that, as a profession, we must strive for.

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FP: What's the best thing about being a Financial Planner?

HJ: I get to solve people's problems. I get to go in and help people understand where they want to go, and help them get there. The right way for somebody to go forward with their financial future depends on many things, and one factor is what sort of people they are. In part my role is about numbers and facts, but it's also about getting to know what's important to people so I can give them the direction that they need.

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?

HJ: The cost of regulation and red tape is undoubtedly high. When I work with a client they receive vast swathes of paperwork, the majority of which won't ever be read. Of course people have to be protected, but it is excessive. A solicitor doesn't include details of the case law that has resulted in the wording of legal documents. This is a real threat because it prevents people engaging in what's really important – their financial future.

FP: What do you think the key is to making more of the public aware of the benefits of a Financial Planner?

HJ: It comes down to education, both at school and throughout people's lives. People leave school with little knowledge of finances, and most knowledge they have is forged by their parents. The financial services industry has excelled at making products complicated when they needn't to be. The workplace pension reform will go some way towards educating people because soon the majority of workers will have a pension to think about. Education is important to me and it's something we strive to do for our clients, both at our first meetings and at each subsequent review.

FP: If you could change anything about the Financial Planning profession what would you choose and what's the future for Financial Planning?

HJ: There's a lot of talk about robo-advisers, or online Financial Planning tools. I think they are useful for a certain market and have a place because they are affordable and it's better people do something than nothing, but perhaps they need to be approached with caution. The future for Financial Planning is good. It's a service that much of the population will need at some point, and increasingly people are understanding this. The transparency of the fee-based system means that, as a sector, we have a far better offering.

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FP: What do you like doing in your spare time outside of work? Do you have any unusual hobbies?

HJ: I'm a life-long rugby fan and used to play but now coach my local senior team. I get a huge amount out of it on both a personal and professional level. On the rugby pitch, I encourage people to make better decisions rather than just tell them what to do, and this method translates into my Financial Planning – I am giving people a framework in which they can make better decisions. I think being a Financial Planner makes me a better rugby coach, and vice versa.
I'm an enthusiastic supporter of lifelong learning and read many business (and rugby) books. I believe that I should be better tomorrow than I am today.

FP: How did you transition from being a teacher to a CFP^CM professional Financial Planner?

HJ: I came into the profession partly by accident, but my motivation from the start was to make the business better. Getting it right was through trial and improvement, but also by studying and learning from others. I don't try to copy people but I do look at what they do and am constantly reviewing how we do things.

KEY POINTS

1. Leaders create leaders – empower others to make better decisions, which gives them responsibility and frees up your time.
2. Rome wasn't built in a day but some of it was - take action, because you have to start somewhere. It's better
to get on and do something, then you can perfect it later.
3. Decide – any decision is better than no decision at all; some of the most intelligent people are stymied because they can't make up their minds.

MY BUSINESS DAY

After the school run, I'm in the office by 9 am, and start by reviewing outstanding actions and re-prioritising as necessary. By 10 am I have begun tackling my actions list. If I have client meetings, these will usually take place in the morning, unless I'm in Wales (where many of our clients are based) when I'll be out of the office. Throughout the day I'll set aside time to do, delete, delegate or defer matters arising. Before leaving, I'll review the outstanding actions ready for tomorrow. My short commute gets me home by 6 pm so I can catch up with the family.

HUW JONES CFP^CM OF PROPOSITO FINANCIAL PLANNING

Huw is a Certified Financial Planner^CM professional and a Fellow of the Personal Finance Society. A Cambridge University natural sciences graduate, with a passion for rugby and quantum physics, he spent four years teaching maths and PE before joining his father as a Financial Planner in 1999, in a business which was rebranded as Proposito Financial Planning in 2011 and is based in North Wiltshire. He has an insatiable appetite for lifelong learning and tries to enthuse others to have the same. He is married with two children and is 1st XV coach of his local rugby club in North Wiltshire.

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www.proposito.co.uk

01666 829224

@Proposito_FP