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market spotlight | quarterly review

The second quarter proved to be a bit bumpy for equities, but each of the benchmarks listed here closed the quarter ahead of their first-quarter closing values. April saw equities close the month ahead of March, buoyed by favorable corporate earnings reports, proposed tax cuts, and strong foreign economic advances. Nasdaq led the way posting monthly gains of 2.30%, followed by the Global Dow, which gained almost 1.50%. The large-cap Dow advanced 1.34%, ahead of the S&P 500, which increased close to 1.00% for the month. Even the small-cap Russell 2000, which has had some rough weeks, closed April 1.05% ahead of its March close.

May was a slower month as consumer spending and wage growth were relatively weak, with only 138,000 new jobs added in May, compared with an average monthly gain of 181,000 over the prior 12 months. Nevertheless, only the Russell 2000 lost value, falling 2.16% from its April closing mark. Nasdaq continued to surge, ending May with a monthly gain of 2.50%.

did you know?

In 1985, Michael E. Gerber published “The E-Myth,” a pioneering book about entrepreneurship and business success. Over the following thirty-plus years, Gerber has added to his bibliography and refined his insights to reflect our connected world. Here are four of his golden rules that will help you work on your business instead of work in it:

  • Your system will provide consistent value to your customers, employees, suppliers, and lenders, beyond what they expect.
  • Your system will stand out as a place of impeccable order.
  • All the work in your system will be documented in an operations manual.
  • Your system will provide a uniformly predictable service to your customer.

Source: The E-Myth Revisited

bright ideas
Are You Scalable?
How Systems, Products and People Can Help Your Business Take the Next Step

Do you want to work in your business or work on your business? Obviously, if you’re reading this, you want growth, but it’s difficult to reach beyond a certain level without a scalable business in mind. And with DOL regulations taking effect, operating with efficiency and consistency is more essential than ever before.

At Beacon, we have seen many financial professionals hit a plateau around $10 million AUM; for others, that may not reach their peak until $20-$30 million AUM, but rest assured, that invisible ceiling is there. If you want to ultimately hit your AUM goal of $50 million, $100 million or beyond, you will need to implement the following primary components to your business model:

You need a system in place. One of our advisors who has eclipsed $100 million in AUM got there in part through a highly-organized, three-step process for bringing clients onboard. With every client, this advisor will have an initial meeting, followed by an information gathering meeting, and finally, an implementation meeting. It doesn’t matter the size of the account. Every client rolls through the system in a uniform manner, keeping the process as efficient as it can be. In fact, it’s such a systematic process that the advisor doesn’t get bogged down at any point, wondering—what do I do next?

To make sure you have a system in place, a system that works for you, the most important step you can take is to have one day of planning and/or reviewing your system. During this planning session, you’ll need to ask yourself detailed questions, including:

            * What is our annual, quarterly and monthly plan for existing clients?
            * What is our process for finding new clients?

            * What is our process for onboarding new clients?

            * What is our plan to market to our prospects and clients?

By answering these key questions, you will be able to develop a system that will help you run an efficient business that will, in turn, allow that business to grow.

To be efficient and authoritative it’s important to have core products or portfolios that you know inside and out. This will allow you to have a consistent and credible story with your clients so you’re able to tell them, “This is what’s going on with this particular product.” When you have clients scattered across twenty or thirty products, it tends to cause more headaches and stress because you’re spending so much of your valuable time researching and fact-finding the product in question.

The third component of an efficiently-run, growth-oriented business is the people you hire and trust to do the work. Whether they are in-house or found through outsourcing, you want to surround yourself with people who can take on time-consuming jobs such as social media marketing and data entry work so it can free you up to do what’s most important to your business—meeting with clients. One place to find great freelancers is, a massive online repository where you can hire skilled outsourced labor for as little as $10-$15/hour. At this point in your career, why would you bog yourself down with menial tasks when you have the opportunity to outsource them?

At Beacon, we are committed to helping you grow your business. For further assistance on how you can integrate scalability into your business plan, contact your wholesaler today!

beacon news

Be sure to visit Beacon’s News & Press page for the latest credibility pieces to share with your clients and prospects, including a recent quote in American Funds article: “5 Ways to Keep Your Emotions in Check When Investing.”



Beacon Capital Management, Inc. is an investment advisory firm registered with the Securities and Exchange Commission. Additional information about Beacon Capital Management is also available on the SEC’s website at under CRD number 120641. Beacon Capital Management only transacts business in states where it is properly registered, or excluded or exempted from registration requirements.

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