There are a lot of "busy fools" out there in financial services but with no clear focus on where their business needs to go, the outgoing chief executive of the Association of Mortgage Intermediaries has said.
Rob Sinclair, who announced his retirement earlier this year, told the latest FT Adviser Editor's Podcast that the most important thing about running a successful business was "focus".
He said: "I heard this anecdote a very long time ago now, but the most important thing is focus.
"The anecdote is, simply, that you may start off in retail with a shoe shop. A customer comes in and says 'Oh I wish you had stockings'. So you get stockings in.
"Another customer says 'have you thought about this or that?' and suddenly it doesn't take long for those great customer suggestions to turn your business into a department store, not a shoe shop.
"So the thing about business is that you need clarity. You need focus."
He said it was vital for business owners old and new to focus on what they are trying to do and who they are trying to do it for, and be really clear about what the service for that proposition looks like.
According to Sinclair: "Whether you have a geographical focus or a certain type of client, you need to pay attention to that. With all the products and services that are out there it is easy to get diverted.
"You need to take a breath and take stock. It is very easy to become busy but not making any money at all. There are lots of busy fools out there who do not understand the bottomline. You have to do what makes you money."
He added: "Consider technology - look at what technology you really need in your business, and make it effective and efficient.
"There are loads of companies exhibiting their wares at conferences but how many are going to be around in five, let alone 10 years' time?
"They are all offering solutions to one niche problem but we need to look at end-to-end solutions.
"Advisers need to focus on what their business does, and then think about what is the technology they need.
"Get that bit right, and get that clarity of focus and that is the way you will end up with a long-term, sustainable business model."
To listen to the full podcast, click on the link above.
