Many small advisory firms are operating leanly these days, especially in manpower, but thanks to technology, they can appear equal to their larger peers.
By offering the same products and services as wirehouses, such as outsourced phone services and web technology, they can offer big-firm sophistication to clients and prospects at reasonable cost.
"We're small, but we're able to serve our clients, whether we're in the office or at a seminar, because of our technology," said Arnold Principal Jr., whose SYP Capital Management LLC is based in Brooklyn, New York, but uses a Wall Street address offered by an international office solutions company on its website and other materials.
Employing a phone system from GotVMail Communications LLC of Needham, Mass., SYP Capital has a toll-free number and individual extensions for each of five employees. The system, which costs about $125 a month varying with usage, also forwards calls to any phone, sends voice mail to e-mail accounts and BlackBerry-type devices, has music on hold and offers dial-by-name directories.
The local cable company links the system and the firm's other technology to the Internet, said Mr. Principal, whose state-registered firm manages $13 million.
Many advisers find the new phone technology liberating.
"I work from home, and my clients don't care," said Craig DuVarney, a certified financial planner and solo practitioner with 150 clients in Concord, Mass., who also uses a web-based phone system. He recently took part in a panel discussion on technology infrastructure at the Financial Planning Association's Business Solutions Conference in Rosemont, Ill.
"I went with a system from Thinking Phone Networks Inc. [of Cambridge, Mass.], which costs about $250 a month and offers business-class voice-over-Internet service," said Mr. DuVarney, who uses the local cable company as his Internet provider. "Then I hired a professional voice-over person for $100 from Voice123 LLC [of Secaucus, N.J.], who recorded all the different pieces."
Mr. DuVarney cited other advantages of his system.
"From a disaster-planning perspective, it's terrific — I can take my phone to another location, plug it in, and my system is up and running. I set up the system so that my voice mail, faxes and e-mail messages go to my e-mail box, which I can call into and then call from, making it seem like I'm calling from my office no matter where I am."
To schedule client appointments, including annual reviews, Mr. DuVarney uses Executive Scheduling Associates in Redding, Calif., which provides access to a person who can handle any scheduling task for as little as $38 a month.
"My clients know the person they're speaking with is in California, but it doesn't bother them at all," he said.
From a compliance perspective, having all voice mails recorded in WAV format permits easy storage and retrieval of any message, Mr. DuVarney said.
Outsourced Internet-based phone systems give advisers tremendous flexibility, said panelist Matthew Sarrel, the former technical director of PC Magazine Labs at New York-based PC Magazine and executive director of the Sarrel Group, also in New York, which helps small businesses with technology.
"With an in-house phone system, adding an extension would involve calling in a technician and spending about $200. Using outsourced services, you get a web interface and can add an extension on your laptop," said Mr. Sarrel, who also uses GotVMail and pays $34 a month for 20 extensions.
One of the advantages of having communications systems available 24/7 from anywhere is that advisers are always accessible to clients — which has its pluses and minuses.
"I like being able to get calls and check e-mails at all times," said Mr. Sarrel. "One time I was on vacation, and closed a deal while sitting on the beach."
Mr. DuVarney wanted to spend time with his family but found himself consumed by client demands. Now, with his new technology, he checks his messages once a day when he's not working.
"It's all in how you manage expectations. If people think you are available all the time and you're not, then you've disappointed them," Mr. DuVarney said.
E-mail Evan Cooper at [email protected].
