With the increasing costs impacting financial planning businesses, scale has never been more important in a financial planning business. We love the below diagram (it has to be Tim Lane's favourite!), as it shows the valuation gaps that can occur when a business is and isn't at scale. With a subscale scale business, your options can be limited.
The point of scale has shifted significantly over the last five years, from circa $1million in revenue, to now $1.5million and above, depending on your operating model and location.
If you want to understand more about how scale, and your business size, can impact your business valuation contact our office via the link below, or review our valuation guide here: https://www.finconnectadvisorygroup.com.au/freeresources
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