Everyone makes mistakes. But there are some mistakes that financial advisors can easily avoid. Doing so will help you grow your business.
Here are some common mistakes advisors make and tips on how to avoid them.
- Not responding to clients on time
In this digital era, clients want immediate access to information. Replying even within a day is not good enough. You should make sure to be in constant touch with clients and solve their queries instantly. This will help you build trust and a good rapport with them.
Nisreen Mamaji of Moneyworks believes that people are always concerned about money. They want to know what is happening to their money. “You have to become a Google for your clients, i.e., respond to all their queries within seconds. Also, it is our duty to provide them with a solution to give them peace of mind.”
- Lacking a structured approach
Advisors often segment their clients based on their AUM. However, clients with similar AUM, but of different generations, may require a different approach. For instance, while millennials are comfortable visiting your website for queries, an older client would need a personal approach.
Hence, you should consider financial objectives, risk tolerance and service level while segmenting your client approach. “Advisors should prepare a set of questions to ask clients based on their age, profession and taste. This will help us provide customise solutions to clients,” said Vinod Jain of Jain Investments.
- Not attending training programmes
Attend training programmes. This will help you get insights on specific topics. Also, you can network with fellow advisors to get an idea of the latest trends and developments in the advisory business.
Bharat Bagla of Bees Network believes advisors should join training programmes to improve their business skills. “If advisors want to improve communication skills, join a soft skill training program; if they want to understand how you can grow business, attend industry conferences,” he says.
Advisors can take online courses on topics like soft skills, storytelling and so on, if they do not have time to attend training sessions, he adds.
- Depending only on referrals
Referrals may be the most convenient way to acquire clients but depending only on referrals can limit your growth.Advisors should be open to finding ways to acquire new clients through different channels to accelerate growth in business. You can acquire new clients by organising IAPs, leveraging social media and writing columns
Gajendra Kothari of Etica Wealth Management believes conducting IAPs is an effective way to acquire new clients. “We generally conduct IAPs for 3-4 hours in which we try to cover everything related to finance. We explain technical matters in layman’s language so that these are easy for them to understand. Also, we explain how existing clients have benefited from mutual funds. At times, I show people my personal investments to build trust,” he explains.
IAPs have helped him convert 70% of his audience, says Gajendra Kothari.
- Not taking out time for yourself
Many advisors are so involved in their business that they hardly take out time for themselves. Leading a healthy lifestyle is critical as it relaxes the mind and keeps you refreshed. Do yoga, meditation and even have a hobby to manage your stress.
Vishal Dhawan of Plan Ahead Wealth Advisors believes that not paying attention to your health may dent your business. “Advisors should take out time for themselves as strategic thinking can only happen when the advisor’s mind is at rest and ease,” he says.
