What Kind of Business Do You Want?

What kind of business do you do? Sounds simple but even many "successful" financial advisors fail to take the time to really examine the structure of their business. So many advisors have been in the business for so long that their practice has grown almost of its own accord. For example, inherited accounts may outnumber those found through prospecting and referrals.

"So what?" you say. The problem here is that when successful financial advisors and teams prospect, they carefully select a specific target market that fits their niche business, their "sweet spot." However, over the years, as other advisors leave the firm, their accounts are distributed throughout the branch and "inherited" by the remaining advisors. Unfortunately, the inherited accounts rarely fit the target market of the receiving advisors, making it far more difficult to create an maintain an effective client service matrix. Further complicating this for many advisors is the mindset that you NEVER give away a client, no matter how small. Who knows, they might win the lottery or some other windfall. Instead of a well-ordered business with a solid, effective client service matrix, the result can be a hodge podge of clients of every size with every conceivable financial interest.

Don't get me wrong. You can create and maintain a very successful business based on helping "smaller" clients identify, define and achieve their financial goals. In fact, one of the most successful financial advisors in the industry has done just that. It simply requires a different business practice model to achieve. The one thing you can't do, is succeed by trying to be all things to all people.

Examine your business; the demographics of your clientele, their investment size, needs and resources. Then determine how you want to do business. Do you want to limit yourself to clients in the million dollar plus range? Fine. That will require one kind of business practice model. Would you prefer to work with clients in the $400k - $700k range? That will require a different model. And if you want to work with those in the $200k - $500k range, that will require a different model still. You can become extremely successful working in any one of these ranges.

Don't let a business development coach tell you that you have to do business a certain way. A good coach will help you examine the kind of business you have, the kind you want, and then help you to get it. In other words, a good business development coach will help you identify, define and achieve the kind of business you want. Thanks and good luck. kfg