Take a proactive approach to the current market and invest in opportunities to better your financial advice firm
As consumers tighten their belts and focus on paying their household bills, it is no surprise that spending money on financial advice falls to the bottom of the priorities list. This makes the market for Financial Advisors difficult, but not impossible…
Even when the market is shrinking, there are opportunities to capitalise on and money to be made. The secret is knowing how to boost business.
Recruitment and acquisitions
It may seem contrary to take on more staff or acquire another firm when the market is not yielding as much business as a company would like. However, boosting employee numbers also gives greater scope to cover more ground and canvas for more business. The greater the number of Financial Advisors on board, the greater the number of people potentially bringing in new business..
Similarly, acquiring another firm when the market is difficult provides a business with a ready-made addition to the client bank.
Utilise your skills
Financial Advisors are obviously good at giving financial advice, but they must look at what other skills they, their employees, and board members have, that can be utilised.
Is there someone in the company who has a flair for marketing and branding, or someone who is a whizz at social media? Of course, great financial planning should be at the heart of a financial advice firm but there are many parts that make up a business, so Financial Advisors should make sure they are covering all bases.
A firm can also benefit hugely from having people in the business with an accounting or legal background. They are sure to know others in their line of work and could be a great help in boosting professional connections and subsequently referrals.
Investing in technology is worthwhile as it allows Financial Advisors not only to be more streamlined and productive but also to branch out their business.
Many firms are taking to the internet to help capture a new breed of client. With most people only taking their first look at financial advice when they reach retirement, there are untapped generations who could be the next big clients.
These people are web-savvy and used to transacting online, so it makes sense for firms to look at offering web-based advice services. These services will become more common as the Retail Distribution Review (RDR) has forced Financial Advisors to look more carefully at segmenting their client base and how they will deliver financial advice to those on modest incomes.
When the market is difficult it is tempting to climb into the bunker and wait until the storm passes, but the reality is that the current storm could last for a while yet, and yes, could get worse still.
Firms that take a proactive approach to their business and invest now when times are hardest will reap more benefit over the longer term.