Save $35,000 Annually

Save $35,000 Annually

Executive Summary

Imagine freeing up $35,000 annually simply by optimizing your staffing levels. The Johnson family, owners of a seasonal landscaping business, achieved this by leveraging our FTE Calculator, turning operational inefficiency into reinvestment capital, and setting a precedent for how RIAs can leverage similar strategies for client success. This case study demonstrates how Golden Door Asset's AI-powered tools can drive tangible results for your clients, enhancing service and solidifying your advisory value.

The Challenge

Registered Investment Advisors (RIAs) and wealth managers face increasing pressure to deliver exceptional service while managing operational costs. Industry surveys show that staffing is consistently one of the largest expense categories for advisory firms, often accounting for 50-60% of overhead. While technology solutions are streamlining many aspects of financial planning, resource allocation, particularly in businesses with seasonal fluctuations, remains a challenge. The Johnson family, clients with a combined income of $450,000 and a seasonal landscaping business in suburban Chicago, exemplify this pain point.

Their business experiences a significant surge in demand during the spring and summer months, followed by a considerable slowdown in the fall and winter. Without a precise method to determine their actual Full-Time Equivalent (FTE) employee needs during these peak and off-peak seasons, they were forced to guess at appropriate staffing levels. This uncertainty led to two costly outcomes: excessive overtime pay to handle peak season demand and underutilized staff during slower periods. This not only impacted their profitability but also detracted from their ability to reinvest in their business and save for their children's college education. The cost of inaction for RIAs and their clients, like the Johnsons, is significant. It translates to reduced profitability, missed growth opportunities, and potentially strained client relationships due to resource constraints. In today's competitive landscape, where fee compression is a constant concern and clients expect more for less, optimizing operational efficiency is paramount.

Our Approach

Golden Door Asset’s FTE Calculator provides a data-driven approach to workforce optimization, moving beyond guesswork and enabling RIAs to advise their clients with greater precision. For the Johnson family, the process unfolded as follows:

First, we worked with them to gather detailed data on their weekly labor hours for both peak (spring/summer) and off-peak (fall/winter) seasons. This included a breakdown of hours worked by each employee, categorized by specific tasks. This granular data input is crucial for accurate calculations.

Second, the FTE Calculator analyzed this data to determine the total FTE count required for each period. The calculator considers a standard 40-hour workweek and adjusts for employee availability (e.g., vacation time, sick leave). The output clearly showed the Johnsons exactly how many full-time employees they actually needed during both their busy and slow seasons.

Third, armed with this knowledge, the Johnsons were able to strategically adjust their workforce. During peak seasons, they explored options for temporary employees through a local staffing agency to supplement their core team. During off-peak seasons, they reduced overtime and reassigned employees to other tasks or, in some cases, strategically reduced hours for certain positions. Furthermore, the insights from the FTE calculation helped them identify specific tasks that could be automated through equipment investments, potentially reducing their overall FTE requirement in the long run.

What sets our approach apart is its data-driven precision and its seamless integration into an advisor's existing workflow. Rather than relying on gut feelings or industry averages, the FTE Calculator provides a clear, objective assessment of staffing needs. It doesn't require complex software installations or extensive training. It's designed to be user-friendly and easily integrated into an advisor's existing financial planning process, providing actionable insights that can be implemented quickly.

Technical Implementation

The FTE Calculator is built on a modern, scalable architecture designed for ease of use and data security. The core of the calculator utilizes Python with libraries such as Pandas and NumPy for efficient data manipulation and analysis. The front-end is built with React, providing a responsive and intuitive user interface for data input and results visualization.

Data inputs are collected through a secure web form, which is then validated and stored in a PostgreSQL database. This relational database provides robust data integrity and allows for efficient querying and reporting. The application is hosted on AWS, leveraging their secure and scalable infrastructure to ensure high availability and performance.

Data security and compliance are paramount. All data transmitted to and from the FTE Calculator is encrypted using TLS 1.3. Access to the database is strictly controlled using role-based access control. Furthermore, we adhere to industry best practices for data privacy and security, including compliance with relevant regulations such as SOC 2 and GDPR (where applicable for client data). We understand that RIAs are entrusting us with sensitive client information, and we take our responsibility to protect that data very seriously. Our commitment to security and compliance provides advisors with the peace of mind that their clients' data is safe and secure.

Results & Impact

The impact of the FTE Calculator on the Johnson family's landscaping business was significant and measurable. By strategically adjusting their workforce based on accurate FTE data, they achieved substantial cost savings, which could be reinvested or saved for future educational expenses.

The primary ROI metric was a projected annual savings of $35,000, broken down as follows:

• Reduced Overtime: $20,000
• Eliminated Unnecessary Staffing: $15,000

In addition to the direct cost savings, the Johnsons experienced several secondary benefits:

• Improved Employee Morale: By eliminating unnecessary overtime and providing more predictable work schedules, employee morale increased.
• Increased Efficiency: With a properly staffed team, the Johnsons were able to complete projects more efficiently, leading to increased client satisfaction.
• Strategic Reinvestment: The freed-up capital allowed the Johnsons to invest in new equipment, further streamlining their operations and reducing their reliance on manual labor.

Here's a summary of the key metrics:

The Johnsons' experience demonstrates the power of data-driven decision-making in workforce management. By leveraging the FTE Calculator, they were able to optimize their staffing levels, reduce costs, and improve their overall business performance.

Key Takeaways

Here are some key takeaways for RIAs and wealth managers to consider:

• Data-Driven Staffing is Crucial: Relying on gut feelings or industry averages for staffing decisions can lead to significant inefficiencies. Use data to understand your actual staffing needs.
• Seasonal Businesses Require Dynamic Staffing: If your clients have businesses with seasonal fluctuations, consider using tools like the FTE Calculator to optimize their workforce throughout the year.
• Explore Temporary Staffing Options: Utilizing temporary or part-time employees during peak seasons can be a cost-effective way to handle increased demand without overstaffing during slower periods.
• Identify Automation Opportunities: Analyze your client's workflows to identify tasks that can be automated through equipment investments, reducing their reliance on manual labor and freeing up valuable resources.
• Focus on ROI: Quantify the impact of your advice by demonstrating how you are helping your clients save money and improve their business performance.

Why This Matters for Your Firm

In today's competitive advisory landscape, simply providing financial advice is no longer enough. Clients are demanding a more holistic approach that addresses their overall financial well-being, including their business operations. By leveraging tools like the FTE Calculator, you can provide your clients with actionable insights that improve their profitability and free up capital for reinvestment. This not only enhances your value proposition but also strengthens your client relationships.

Imagine being able to walk into a client meeting and confidently say, "I can help you save $35,000 annually by optimizing your staffing levels." This is the power of leveraging AI-powered tools to provide data-driven advice. At Golden Door Asset, we are committed to providing RIAs and wealth managers with the tools they need to thrive in the future. Explore our suite of AI-powered solutions today and discover how we can help you deliver exceptional value to your clients. Visit our website or contact us to learn more and schedule a demo.