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Building a great financial planning practice – Part 2

01 August 2020

How can fledgling financial planners successfully roll out a financial advisory practice? Asks freelance writer, Brian O’Connell, in an article on Investopedia.

“By planning ahead and prioritizing five key elements of a solid practice: financing, team-building, technology, sales and marketing,” he says.

Get involved with your community
Steven Kolinsky, co-founder of Kolinsky Wealth Management and a 30-year industry veteran, advises getting to know your community and getting involved in your town. 

"Being generous with your time and talent in your community raises your profile and lets you get to know the people around you. We recently had a meeting with a young couple who was not ready to invest, but was looking for advice about their financial parameters in buying their first home,” he says.
 
Kolinsky says, "A great deal of business has been referred to us through the genuine relationships we have cultivated, showing them how we do business and that they can entrust their clients to us. These relationships have taken time to build but have been mutually beneficial," he says.
 
Aim for younger clients
There is a dramatic shift in assets underway across the globe, and it's trending toward younger investors.

"The key takeaway is servicing the younger generation does not have to dramatically change an adviser’s practice management and recommendations," says Jill Jacques, wealth management and retirement lead director at North Highland, a global consulting company.

"Instead, it is all about incorporating engaging online and in-person tools that will create a two-way conversation to stay relevant to evolving audiences." She recommends building a younger audience via highly popular sites such as Facebook, Linked-in, Twitter, and Google+.
 
Prune your client list
A 2012 survey of "elite" financial advisers by Financial Planning reveals that most $1 million-plus annual earners tend to serve fewer – not more – clients.

“With fewer clients, advisers can spend more time working on client relationships and building client satisfaction. That, in turn, creates greater customer loyalty and increases the odds that your clients will refer to you other affluent clients,” says O’Connell.

“The Financial Planning study claims that to access more assets from fewer customers, focus on those affluent investors. The data says that the highest-income advisers tracked by study researchers says that its list of so-called elite advisers work with an average of 83 clients, each of whom has at least $1 million in assets with the advisers. That is compared with nearly 73 clients for each of the advisers earning between $500,000 and $1 million, and 23 clients for the lowest-earning group surveyed by the magazine,” continued O’Connell.

The bottom line
“As the tips above attest show, building a better financial advisory practice is all about focusing on a few game-changing steps - and doing them well,” he said.
 
"If you are knowledgeable about the products you recommend, continue to educate yourself on the investment industry, and always put your clients needs above your own, that’s a great head start," says Kolinsky.
 
“Past that, be creative, get out there in the community and online, and build your own unique financial advisory brand - one that keeps you a step or two ahead of your competition,” concluded O’Connell.

 

 

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