What’s the most common “bad habit” among financial advisors? That would be a lack of planning when it comes to the day-to-day running of their practice, according to practice-management professionals.
Want to move your business forward? Something as simple as breaking down your goals into weekly tasks will help, says Sara Gilbert, founder of Strategist Business Development in Montreal.
Rosemary Smyth, principal of Rosemary Smyth and Associates in Victoria, says that lack of planning can take the form of an absence of a procedure when it comes to dealing with clients. “Not having a process for clients,” she says, “is the biggest [issue] I deal with.”
And an inability to communicate that process to clients is also a problem, according to Larry Distillio, director of financial advisor business management with Mackenzie Financial Corp. in Toronto.
Here are three ways to conquer those issues:
1. Plan your ideal week
Don’t fall into the trap of only reacting to situations that come up. Instead, list your goals and determine how you will take steps toward achieving them throughout the week, the month, the next quarter and the year, Gilbert says.
Starting with your week: what specific tasks can you accomplish throughout the week to work toward your objectives?
If your ultimate goal is to attract more ideal clients, your weekly objective might be to spend more time prospecting. If you break that objective down into tangible tasks, you will find it easier to succeed. So, start by scheduling time to meet with one centre of influence (COI) per week. By connecting with those professionals regularly, you increase the level of trust in that relationship and your COI is more likely to introduce you to his or her clients.
2. Document a financial planning process
Advisors need to spend more time developing processes that will produce a more coordinated practice, according to Smyth.
Start with defining a method to take your clients through the financial planning process. This area is important, Smyth says, because for many advisors it produces the most revenue.
So, identify factors such as how many meetings you require in order to get to know a new client and how you start your planning. Do you begin with a cash-flow analysis and start with short-term needs? Or do you prefer looking at long-term retirement planning and working your way back?
3. Inform your clients of your services
Don’t assume your clients are aware of all of the services your practice provides.
With the implementation of full fee disclosure under the second set of client relationship model rules (CRM2), you should want your clients to understand the full value you provide. So, be proactive in reminding clients of the extent which you can assist them with their financial needs.
The first step takes place before even speaking to your clients. Start by listing the typical life events for the various markets you serve. Then, record the services you provide for each type of client.
For example, if you work with young families, their financial events will include buying a new home and saving for their children’s education.
Document the services you provide to prepare those families for those events, such as your working relationship with a mortgage broker and your ability to provide registered education savings plans.
Introduce the topic at the end of meetings by informing clients you want to them to be fully aware of everything they have access to within your business and then describe your process.