Financial Adviser Practice Building & Clients Considerations

Early morning over a Seattle cappuccino, a good time to ponder my big 3 on client service in building a financial planning practice:

 Changes in our environment from legislative to economic tell us you can't do what you did yesterday, and build a practice for tomorrow. It’s been a tough first quarter, now it’s done and paid for.

Barriers to entry for new talent plus statistics of diminishing financial professional numbers indicate that those who have the tenacity to weather this storm and the foresight to capitalise on the opportunities therein, will thrive much like our international counterparts.

1. How we attract new clients.

• Consistent new client opportunities are crucial, and where we once relied on leads and luck, the market has changed and the right clients are looking for real professionals.
• Referrals are an area all professionals thrive on, and when looking for real advice clients are far more likely to trust that of a professional they have been referred to. Fail to do this, and spend your time servicing the scraps given to you whilst your clients get second opinions from other brokers. Cold introductions are a lottery, perhaps valuable as a seed to further referral opportunities, but unsustainable.
• Target the right clients, not everybody can afford your professional services nor can you afford to service them, particularly if you are not a salaried individual in a bigger VP. If you're building a practice, build it on a strong base.

How do we engage clients.

• Specialize. Differentiate yourself. Do you have a speciality and are you referred to as the go to guy around the braai. What is your own client value proposition, what do you do differently, do you deliver on your promises and do you have the right support around you.
• Be efficient and deliver on big promises. Sales people and brokers are trying to eat your lunch. Be first, be efficient and deliver on what you commit to. Trust is everything.
• Presentation, show clients you are serious and present what you are, professional and prepared.

1. How do we retain clients and make them into something more:

• Review regularly. And when markets are difficult, call them first. When things change in thier lives, be in the loop. This is where a client will grow into an advocate.
• Communication. Keep clients informed, activate your brand with the right prospects, market your speciality, and ensure that you are top of mind and always open for business.
• Above everything else, be patient, consistent and be ethical. Put your clients’ needs first and your income will follow, and grow in line.

Most importantly decide if this is your passion and why. If it is, be consistent, keep it simple and break down your goal into daily tasks, keep your eye on that end game and take accountability for it all.

My thoughts on this are simple, for those who keep in mind the singular objective of building a practice as a financial professional, the light at the end of the tunnel is most certainly not a train.