Best Financial Services Inc,
IntroductionLinda Best, a Certified Financial Planner (CFP) from Sarnia, Canada is the founder and sole shareholder of Best Financial Services Inc. which was established on January 1, 2001. Sarnia, the largest city in South Ontario, bordered the United States and was heavily populated with aging baby boomers and blue-collar workers. Best Financial earned its revenues mainly from blue-collar workers nearing retirement. Best financial had formed strong relationships with many clients throughout Sarnia and managed over 1000 financial plans allowing a steady revenue and profit growth. The key services provided by Best Financial are risk management, tax preparation and professional money management. The company’s Assets under Management were $22 million on as January, 2008.Gerald Young, one of the top clients of Best Financial had informed Linda Best that he would be moving his assets to one of Best’s competitors, Scotia McLeod. The loss has forced Best to think about the future direction of her company. Best needs to complete an assessment of the industry and Best Financial’s past performance, followed by projected financial results of her new strategy. She must decide whether to hire a new advisor or purchase a block of business from another financial planner. Q1. Perform a size- up of the industry. Identify the threats or opportunities.Answer:Financial planning is one distinct segment among many within financial services industry. The aim of the financial planners is to assist people to maximize the potential of their financial assets. Financial planners evaluate a client’s goals, personal circumstances and risk tolerance to help them grow and preserve their wealth, minimize taxes , complete estate planning and determine insurance needs.The financial planning has a prescribed six step process for financial planning outlined by FPSC(Financial Planners Standard Council).The industry offers various products suited to different needs of the different customers. A variety