Financial advisors who are happy in their work are much more likely to be successful than advisors who aren’t. Building a roster of clients with whom you enjoy working is a huge step toward success.
“You’ll have much greater success with people you love working with,” says April Lynn Levitt, a coach with the Personal Coach in Oakville, Ont..
Andrew Pyle, senior wealth advisor and associate director with ScotiaMcLeod Inc. in Peterborough, Ont., agrees: “Identifying your ‘ideal’ client takes time. But it will pay off with greater job satisfaction and, ultimately, greater financial rewards.”
Client selection
Many advisors fear that client selection will impede profitability, Pyle adds. “But if you are selective and make connections between what you offer and what your potential clients need,” he says, “you will get clients you actually want to work with.”
Before you can find your ideal client, however, you need to know who that person is, says Rosemary Smyth, a Victoria-based business coach for financial advisors: “Having a process for deciding whether to take on new clients will help you distinguish your ideal client from one that only makes your numbers look good.”
Start by listing the characteristics and values of your top clients and identify similarities, Smyth suggests: “Include age bracket, income level and profession. Where do they live? Are they married? Do they have children? What is their demographic and ethnic group? Are they self-employed? Do they generate referrals?”
Add hobbies, business and professional affiliations, and educational background – anything that helps to build a composite profile of your ideal client.
Consider your personality type and assess the type of personalities that best mesh with yours, says Levitt: “What do you have in common with your ideal clients? Do they have a good sense of humour and, if so, how important is that to you in a client relationship? Are your values aligned?”
Use the information you’ve gathered to create your ideal prospect profile, Levitt says. Then, you can start looking for people who fit it.
Advisors who go through this process, she adds, usually identify several ideal clients within their existing client base. Those clients may be able to introduce you to people similar to themselves who are interested in your services. If you share your ideal client profile with your staff and centres of influence, those people also may be able to identify prospects with whom you’ll enjoy working.
Stay in sync
Working with clients with whom you’re “in sync” is key to growing your business, says Smyth: “It’s tempting to take on someone who doesn’t fit just because they were referred by a big client. But saying ‘No’ politely now will be much easier than having your reputation at stake later on.”
It’s a mistake to compromise on your basic offering just to gain clients, Pyle adds. “If you offer discretionary portfolio management,” he says, “and a potential client wants you to consult them whenever you make a move, it’s probably not a good fit.”
Over time, definitions of the “ideal” client often evolve, says Levitt: “As you gain experience or get referrals, your idea of the ideal client may change. So, we advise our clients to revisit this process every couple of years.”
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