The end of the financial year brings a familiar rhythm to advice practices across Australia. While some firms enjoy a quieter period, many are experiencing their busiest weeks as clients scramble to implement last-minute tax strategies. Some of this urgency is unavoidable—business owners facing unexpected capital gains or regulatory changes that require immediate action. However, much of it stems from poor planning by clients who could have addressed these issues months earlier.
Yet amid this end-of-year chaos, the most successful practices are finding time for what matters most: planning their own future. Even if it's just scheduling a half-day session before June 30 or blocking out time in early July, these practices understand that strategic planning can't be deferred indefinitely. With the 2025 Australian Financial Advice Landscape Report set for release in the coming weeks, practices will soon have a powerful benchmarking tool to guide their planning for the year ahead.
The profession is experiencing a quiet revolution in business discipline. After years of regulatory turbulence and operational firefighting, practices are finally embracing strategic planning with remarkable results. The latest research reveals a profession maturing in its approach to business fundamentals, with 77% of practices now having business plans—a significant evolution reflecting growing sophistication across the industry.
However, beneath these encouraging statistics, there's a more nuanced story about the tension between perfectionism and impulsive action that has long plagued advice practices. The most successful firms have learned to master what we might call the 'strategic pause'—that crucial moment between identifying an opportunity and taking action where clarity emerges and better outcomes become possible. This strategic pause is not a delay but a deliberate and thoughtful moment that can lead to more successful actions.
The Business Planning Renaissance
The transformation in business planning discipline across the advice profession has been remarkable. In 2025, not only do 77% of practices have business plans in place, but critically, 44% report having up-to-date plans—a substantial improvement from just 32% in 2024. Only 12% of practices now operate without any business plan, down from 14% the previous year.
This shift represents more than mere compliance with best practice recommendations. Comprehensive analysis of 1,312 financial advice practices reveals a clear correlation between business plan quality and profitability, with average profit margins ranging from a low of 15.3% for practices still developing plans to 23.9% for those with up-to-date strategic documents.
The data reveals a fascinating insight: practices with up-to-date business plans are twice as likely to achieve high profitability (above 30%) compared to those still developing plans. Conversely, practices without current plans or still in development phases face twice the risk of low or no profitability.
The Development Trap
Perhaps most surprisingly, the 2025 analysis reveals what we term the "development trap"—practices currently developing business plans show the lowest average profitability at just 15.3%. This suggests that getting stuck in planning mode can be more damaging than having no plan at all, which averages 20.0% profit margins.
This finding challenges conventional wisdom about business planning. Even practices with outdated plans that need refreshing (19.4% average margins) significantly outperform those still developing their initial strategies. The message is clear: execution with an imperfect plan often beats perfect planning without execution.
The development trap manifests when practices become paralysed by the desire to create the perfect strategic document. During this extended planning phase, they're neither benefiting from the clarity of having a plan nor the agility of operating without one. Meanwhile, competitors with working plans—even imperfect ones—are making strategic decisions and improving their operations.
The Power of Strategic Pausing
Yet the opposite extreme—jumping into action without adequate planning—can be equally damaging. The most successful practices have mastered what we term the "strategic pause"—taking just enough time to dig deeper into opportunities and challenges before committing resources.
This approach is evident in how top-performing practices approach their annual planning cycle. Rather than rushing to implement every new idea or technology, they pause to ask deeper questions: How does this align with our client value proposition? What are the implementation requirements? How will we measure success?
The 2025 data shows this balanced approach is paying dividends. When practices were asked about their biggest planned changes for the next 12 months, 43% prioritised material process efficiencies—a clear sign that they're pausing to optimise existing operations before adding complexity. This measured approach contrasts sharply with the reactive growth patterns we observed in previous years.
The research reveals that only 19% of practices with up-to-date business plans report low or no profitability, compared to 42.7% of those still developing plans. This stark difference underscores the importance of moving from planning to implementation as quickly as possible while maintaining strategic direction.
The Client-Centric Planning Evolution
Perhaps most significantly, the latest research reveals that practices are moving beyond internally focused planning to embrace client-centric business strategies. With 37% of practices planning to expand their service offerings—split between internal capabilities (18%) and partnerships (19%)—there's clear evidence of strategic thinking about client needs driving business development.
This client-focused approach requires a different type of planning discipline. Instead of simply projecting revenue growth, practices are asking more sophisticated questions: What additional services do our ideal clients need? How can we deliver these efficiently? Should we build capabilities internally or partner with specialists?
Modern business planning starts with understanding what clients will need in three years and works backward to build those capabilities rather than simply targeting revenue numbers and hoping for the best.
The Succession Planning Gap
Despite improvements in operational planning, succession planning remains a critical vulnerability. While 23% of practices now have a successor in place (up from 17% in 2024), 61% either need to find a successor or don't have one. More concerning is that 18% of practices have a succession horizon of less than five years, making this a pressing issue.
This succession planning gap represents a classic example of the strategic pause principle at work. Many practice owners know they need succession plans, but delay them because they want the perfect solution. Meanwhile, valuable preparation time slips away.
The most successful succession planning we observe follows a "progression not perfection" approach. These practices start with basic documentation of key processes and client relationships, then gradually build more sophisticated transition plans over time. They recognise that a working succession plan implemented over five years beats a perfect plan that never gets started.
Technology and Planning Integration
Integrating technology into business planning represents another area where the strategic pause principle proves valuable. With 22% of practices planning new IT solutions in the next 12 months and artificial intelligence adoption accelerating, the temptation to chase every technological innovation is strong.
However, the most successful practices pause to evaluate technology through the lens of their strategic objectives. Rather than asking, "What can this technology do?" they ask, "How will this technology help us better serve our target clients or improve our operational efficiency?"
This disciplined approach is evident because 20% of practices consider acquisition or merger a growth strategy. These aren't impulsive decisions but calculated moves that often take years to plan and execute properly.
Risk Mitigation Through Planning
Beyond profit enhancement, effective business planning serves a critical risk mitigation function. The analysis shows that having any form of business plan—even one that needs refreshing—significantly reduces the likelihood of poor financial performance compared to operating without strategic direction.
This risk mitigation becomes particularly important during periods of regulatory change or market volatility. Practices with established planning disciplines can adapt their strategies more quickly than those starting from scratch when challenges arise.
The Path Forward: Balanced Decision-Making
As we look toward the remainder of 2025, the data suggests that advice practices align with business planning. The key insight from our research is that success comes not from perfect planning or rapid action alone but from balanced decision-making that incorporates strategic pausing.
Effective business planning in the current environment requires:
Clarity over perfection: Start with a workable plan and refine it through experience rather than waiting for the perfect strategy.
Regular review cycles: 44% of practices with up-to-date plans aren't those who wrote perfect documents initially—they're those who consistently review and update their strategies.
Client-focused objectives: Ground planning decisions are based on client value rather than internal convenience.
Implementation accountability: Ensure plans include specific timelines, responsibilities, and measurement criteria.
Strategic patience: Take time to dig deeper into major decisions while maintaining momentum on day-to-day operations.
Conclusion: The Maturation of a Profession
The business planning evolution evident in the 2025 data represents more than operational improvement—it signals the maturation of financial advice as a profession. Practices are moving beyond survival mode to embrace strategic thinking that balances careful planning with decisive action.
The strategic pause—that crucial moment between identifying an opportunity and committing resources—has become a defining characteristic of successful advice practices. Whether applied to technology adoption, service expansion, or succession planning, this balanced approach to decision-making is driving the performance gap between leading practices and the rest.
As the profession continues to evolve, those practices that master this balance between planning and action will be best positioned to capitalise on the growing demand for financial advice while building sustainable, profitable businesses. The data is clear: in an industry where margins of 26% versus 17% can determine long-term success, the discipline of strategic business planning is no longer optional—it's essential.
The upcoming release of the 2025 Landscape Report will provide practices with comprehensive benchmarking data to inform their strategic planning process. Whether you carve out time before June 30 or schedule your planning session for early July, the key is making that strategic pause a priority amidst the end-of-year rush.
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