Education and training
“Genius without education is like silver in the mine.”
-Benjamin Franklin
We are part of a growing industry that operates in a very volatile environment. It seems every second day, there is a change: it may be a market correction or a sweeping regulatory change. Keeping one self up-to-date is paramount, for which, one must be exposed to the current happenings in the industry. Be sure to spend a minimum of 30 minutes every day reading up material – newspapers, books and web sites related to your profession.
Make it a point to regularly attend good-quality training sessions; they will keep you informed about best practices and trends.
No mandatory qualification is required to be a financial advisor.You might be in the business for over a decade, but it will surely be beneficial to get a professional qualification. More than anything else, it will give you a better understanding of various financial products, enabling you to serve your clients better. It might have been years since you lifted a book or attended a class but take up the challenge and go for it!
Advisory is a capital intensive industry, but it demands intellectual capital on the part of the advisor. Keep developing your intellectual capital, the benefits will follow.
Get organized
“Good things happen when you get your priorities straight.”
-Scott Caan
As your business grows, so does the work involved. Back when you started, you might have single-handedly done all the work with little assistance from others.But one can’t continue like that forever.
The time at hand will be the same, only the number and magnitude of tasks increase. So it makes more sense to prioritize – to decide which tasks are more important than others.Do the more important ones first and leave the others for later.
Decide which tasks can be delegated to others. You may give the argument that all the tasks are equally important for you. So let’s take an example that will prove this point.
It is important for you to have a record of all the investments you make on behalf of your clients, but is it more important than figuring out what you will suggest to a particular client?
It is important that you look into administration of the office, but is it more important than your meetings with the client?
Thus in the interest of the business, prioritize.
Due diligence in selecting products
If you want to be a long-term player in this industry, then a lot depends on what you sold to your clients in the past and how it performed.
To suggest the best product for your clients, it is not only important to understand the client’s needs, but also to do in-depth research on the products you are selling. Hence before you recommend a particular product, do your homework and don’t forget the fine print.
Accepting fiduciary role
The relationship between the advisor and the client is fiduciary in nature. It implies that the client places his trust in the advisor for his investments; the client believes the advisor will work for his good.
As an advisor you should accept this role and this should reflect in your work. If you do not adopt this approach, soon it will be evident and your clients may let go of you. Not only this, he may speak ill of you and ruin your reputation.
Client centeredness
Client comes first no matter what – it is not a favor to the client, it is a favor to the business. It is not an option – it is the only choice to help you sustain and grow in the long run. Whenever there is a conflict of interest and a choice has to be made between the client and you, the client wins hands down.
Disclosing risks
The client is many times unaware of the risks associated with investments.
Tell the client about the various risks associated with the investments. After all, markets do not always perform as per your and my expectations.
Make the client aware of the risks involved and help him in making an informed decision.
Under promise and over deliver
When you were a kid, what would have been better: your father promising you a chocolate and giving you two or promising you three and giving you only two? In both cases, you got two chocolates but in the first case, you got more than what you were promised, hence you were happier.
Similarly, it is better to set client’s expectation at a more realistic level than create a rosy but unrealistic picture.
Best wishes!
