Advisors should find common ground with prospects before contacting them.filadendron/iStockPhoto / Getty Images
Many advisors succeed in building a solid practice, but struggle to keep the momentum going.
Practice management experts shared strategies that distinguish advisors who consistently grow their practices at the Responsible Investment Association’s (RIA) annual conference in Toronto last week.
Communicate your value
Robyn Reid-Riviere, founder of wealth management consulting firm Dimensions Advisory Group in Toronto, says advisors conduct work that clients never see and that needs to be articulated. She calls this “making the invisible visible.”
As fees become more transparent, “being able to show them all the work you do on a daily basis is important,” she says.
Delegate to your team
Ms. Reid-Riviere says advisors who learn to delegate tend to have the most successful practices. She suggests adopting the four Ps: philosophy, process, people and performance.
Philosophy means every team member shares the same business beliefs.
From there, Ms. Reid-Riviere says a detailed process for how things work is needed.
“It’s about documentation and everyone understanding your systems and how things work. Systemize the things you can so others can take responsibility.”
Once that’s in place, she says it will be easier for the advisor to put people into specific roles and understand individual and team responsibilities.
The next step is tracking performance using metrics.
“The goal is for [the advisor] to be the most involved where they matter the most – with clients,” she says.
Write a strategic plan
Lack of long-term business planning is often the cause of team misalignment, says Mark Toren, president and chief executive officer of wealth management recruitment and advisory firm Toren & Associates in Markham, Ont.
Determining at least three measurable goals will help move the goalpost for your practice.
“Strategic discussions bind partners together,” he says. “If you don’t sit down and have those discussions, you’re not going to get where you want to go.”
Prospect differently
Rony Malev, a financial advisor at Raymond James Ltd. in Toronto, says she uses a mix of passive and active prospecting to grow her practice.
On the passive front, she hosted a cottage succession planning seminar before the summer – a timely topic for cottage owners who worry about family disputes when passing down the property.
“The [seminars] are really about getting the information out there,” Ms. Malev says, with the conversations often leading attendees to realize they need professional help.
On the active side, Ms. Malev has centres of influence beyond the traditional lawyers and accountants. She thought about the services her clients may need and landed on interior decorating, as most of her clients own homes and often speak about wanting to redecorate.
“Building a successful practice really comes down to building that relationship with your client to make sure you are their go-to person for just about anything,” she says.
Find common ground
Building your practice starts with finding authentic connections with potential clients, Ms. Reid-Riviere says. Many professionals use LinkedIn for networking, but few do their homework before offering a cold introductory note to a stranger online.
“It makes me cringe when someone reaches out to me that way,” she says. “Showing some curiosity and preparedness first will make a difference to get that response back from the person.”
Even spending five minutes looking at the prospect’s profile for details about their education and former employers can help.
For example, Ms. Reid-Riviere found a client on LinkedIn after discovering they both went to the same university in Atlantic Canada.
Discover clients’ money values
Ms. Malev likes to connect with clients about their money values, which can change over time. Open-ended questions – such as, “What does money mean to you?” – can generate discussion.
Ms. Reid-Riviere likes “what if” questions that throw a curveball at plans.
“When you ask those questions, you really get to see people and how they manage those situations if they’re forced,” she says.
Editor’s note: A previous version of this article misattributed comments to Ms. Malev that were made by Ms. Reid-Riviere. Attribution has been corrected in the section of the article under the heading “Find common ground.”