Avoid These Ten Mistakes to Improve Your Financial Advisor Business
We’ve been getting plenty of questions about common mistakes Financial Advisors make so here’s a quick roundup of things you should avoid doing if you want to take your Financial Advisor business to the next level.
When you take on new clients make sure you clearly set out what your role is i.e. you can’t promise to make them supremely wealthy but you will manage their investments prudently. You will treat their money as if it’s your own and ensure that they reach their financial goals. Because of you they will be able to enjoy a comfortable retirement or secure the best education for their children without borrowing money. If you are overpromising this could be causing significant harm to your business. Read more on why overpromising is the biggest mistake Advisors make and how to avoid it.
#2. Thinking your job is about managing money
Don’t fall into the trap of thinking that your job is about managing money. Your job as a financial advisor is mostly about managing people’s expectations and behaviors. Your role is to ensure your clients have realistic expectations that match their goals. With your guidance, they will be better equipped to handle market volatility and stick to the plan for the long term. Learn how to manage client expectations.
#3. Not looking after your clients
Acquiring a new client is a big achievement. But if you want to keep them as clients for the long term you must allocate time to look after them. If you don’t, they will feel dissatisfied and may look elsewhere, and they certainly won’t be referring you to anyone else. Gaining a new client probably costs five times more than keeping an existing client. Keep this top of mind and keep your clients happy. Here are four client retention strategies for you to try out.
#4. Comparing yourself to others
If you get into the mindset that other advisors are ‘better’ or ‘more successful’ than you, you could find yourself entering a downward spiral. There’s no such thing as an overnight success in this business. Sure, some advisors will be further on their path to success than you are right now, but they got there by focusing on themselves – not by constantly looking around them. Rather than comparing yourself unfavorably to others look at the traits successful advisors have and aim to emulate them. Let them inspire you – and one day you will inspire others. Learn how to focus on your own success.
#5. Failing to make prospecting a habit
Prospecting is the cornerstone of your business. If you don’t regularly introduce yourself to lots of new people, the pipeline will soon run dry. You cannot delegate this task to others because you are the person potential clients need to get to know. Set goals to understand how many people you should be prospecting, then set aside sufficient time to meet your target. Block these hours in your calendar every day and don’t let anything get in the way. Here are five steps to help you make prospecting a habit.
Procrastination is the thief of time. Whatever your reasons for avoiding your high priority tasks, it can ruin your business. Don’t spend your time ‘thinking’ about taking your business to the next level – make it happen! Here are some ways to help you overcome your reluctance to tackle those important tasks.
#7. Letting fear cripple your chances of success
Even top advisors have fears – they just don’t let their fears take over. Instead they accept that their fears exist and face them down. Fear of rejection could be why you avoid prospecting, fear of being wrong could be why you are underperforming, while fear of success could be hampering your ability to take control of your future and your success. Learn about the fears that could be crippling your success and how to overcome them.
#8. Not knowing who your ideal clients are
The best advisors don’t prospect in the dark; they identify and target the demographic that works best for them. If you don’t know who your ideal client is, you won’t be able to differentiate yourself from the competition. Find people who are a match for you, make an ideal client profile and aim to only work with clients who fit the brief. Here’s how to build your ideal client profile.
#9. Not being accountable
You alone are responsible for your success. If you are not accountable, you will not possess the self-discipline you need to become an elite advisor. If you’re not prepared to own up to your mistakes, you’ll come across as untrustworthy. If you simply sit back and hope things will get better, you’ll be waiting a long time. Here’s what happens if you lack accountability.
#10. Not listening
If you find it difficult to stop talking and listen to clients, you’re not alone. However, If you don’t learn this essential skill your clients will think you are impervious to their needs and your relationship will flounder. Don’t aim to wow prospects with your extensive knowledge – instead find out more about them by listening. Learn how to become a better listener.