It isn’t easy being a rookie financial advisor. Industry research indicates that approximately one-third of financial advisors will leave the industry within their first two years of business.

While there is no magic bullet to make you avoid becoming such a statistic, a realistic understanding of the work involved can help. George Hartman, managing partner with Elite Advisors Canada Inc. in Toronto, offers five suggestions to help you stay on track in your first year:

1. Think like an entrepreneur
Think of your business the way a small retailer would think of his or her business, says Hartman: “We would often make more measured decisions if we were opening a milk store.”

Before opening a small business, most entrepreneurs would survey their desired location, learn the demographics of potential clients and consider issues such as inventory, staffing and funding.

Similarly, as a rookie advisor, you should consider all of these matters. Ask yourself questions such as:

  • Where is my office located? Is the area made up of young families or an older population more interested in making the transition into retirement?
  • Do I have enough funds to produce my own marketing strategy, or is it best to use materials provided by my firm or dealer?

2. Try different strategies
A typical learning period for advisors is 12 to 18 months, according to Hartman. Within this time, you should be developing processes for various aspects of your practice and determine whether those methods work or you should try a different direction.

Some areas to think about are prospecting, client communication, time management and self-development.

For example, you might begin by trying to build your client base through referrals, but eventually find it is not producing results. So, experiment with a more proactive way of finding new clients, such as setting up a booth at a community festival or hosting seminars.

3. Accept that success doesn’t come easy
If there is one thing you should know as a rookie advisors, Hartman says, it is that you will have to put in a significant amount of effort and time in order to be successful.

“It’s about getting yourself out, bloodying your noses a little bit and learning to separate what works from what doesn’t work,” he says. That means putting in the hours at the office; making the stream of phone calls to clients and prospects; and handling the rejection.

If you think this is a “nine to five” job, you are mistaken, according to Hartman: “[Successful advisors] recognize they need to be in the office to connect with clients and prospective clients later in the day.”

4. Seek resources
With a decreasing number of training programs available in the industry, Hartman says, you must take the initiative in looking for the resources that can help you.

Ask senior advisors and branch managers if they would be willing to share their insights with you. Even a simple online search for “traits of successful financial advisors” will produce multiple pages of results. And don’t forget the industry publications and events that provide business-building advice.

5. Stay positive
If you feel discouraged, keep the bigger picture in mind, Hartman says.

Look at the successful advisors around you and remember they didn’t get there overnight. They worked hard to reach their status.


This is part of an occasional series featuring tips for rookie advisors.