After spending 27 years in the army, Col (Retd) Sanjeev Govila decided to quit even though he was promoted as Brigadier.
Instead, he decided to turn his passion into profession. As an army officer, Sanjeev used to advise his colleagues, friends and family on their finances.
But Sanjeev didn’t have any formal education in finance. Sanjeev is a Radar Engineer by profession and has completed his B Tech and M Tech from IIT Kanpur. He has also done M Phil in Defence and Strategic Studies from Madras University.
Before venturing in financial advisory he decided to hone his finance skills further. He completed his CFP and got an additional certification in Personal Financial Management for Indian army officers while pursing MSC from Osmania University, Hyderabad. He is also a SEBI Registered Investment Advisor (RIA).
In 2009, he along with his wife, Bindu Govila floated Hum Fauji Initiatives which caters solely to military professionals. “After retiring, I was looking for an option outside military force, and financial planning came as an easy choice for me,” recalls Sanjeev.
Sanjeev discovered that the many of his colleagues didn’t have access to financial advisors as they are constantly on the move. “Army officials are constantly on the move and sometimes are posted in very remote locations. The constant shuttling makes it difficult for them to hire a financial advisor. I’m trying to fill this gap,” says Sanjeev.
Sanjeev wants to encourage his colleagues to be open when it comes to discussing finances. “Armed forces personnel rarely talk about finances at social gatherings. They consider it a taboo. Also, they are not financially savvy,” says Sanjeev.
While his company is today in a comparatively better position, he has had his share of challenges.
Coming from a completely different profession, Sanjeev found the journey very challenging in the initial days. “Since my business is focused on a niche, acquiring new clients was difficult. My company made no profit for two years,” he recalls.
Another hurdle which he continues to face is getting the right talent. “Even though I’m paying well and have a decent working environment, I find it difficult to get the right talent for my business,” he grudges.
Business model
Sanjeev does not take any clients other than armed forces. If any non-army client approaches them, he or she is referred to other advisors.
Sanjeev has divided the work with his wife, who looks after execution services while he prepares financial plans. He now has over 500 client base in India as well as abroad.
His company offers a wide range of services and deals in mutual funds, corporate bonds, commodities, property, insurance, physical gold and taxation.
Growth
From Rs. 5 lakh in 2010, his assets under advisory has grown to an impressive Rs. 93 crore in 2015. Sanjeev attributes this success to two things – focus on existing clients and IAPs.
Sanjeev had stopped onboarding new clients for five months so that he could cater to his existing clients well. This helped him get a higher wallet share from existing clients.
Also, educating prospects through investor awareness programs has helped him acquire new clients. “Almost 80% of my clients have come through IAPs and workshops. I have been conducting these seminars all over the country. While addressing, I try not be a salesman. Instead, I guide them. I do not conduct IAPs with the motive of acquiring new clients,” says Sanjeev.
Sanjeev started conducting investor awareness programs in remote areas in order to reach out to families which didn’t have access to financial planners.
So far, Sanjeev has conducted more than 200 IAPs across the country.
Success Mantra
The key to his success is integrity and passion. “Whatever you pursue, do it with dedication and the highest level of integrity. Also, try to understand the psyche of investors. Help them achieve financial freedom and your business will automatically grow,” believes Sanjeev.
Future plans
The 14-member Hum Fauji team aspires to be a one-stop shop for army families. “We want to help our clients wherever finances are involved. For example, helping them with financial planning, physical and financial assets, wills and trusts, loans, etc. we are also planning to offer non-life insurance policies.”
Going ahead, Sanjeev wants his firm to spread out the business in other parts of the country.
Sanjeev’s journey is an inspiring case study for those who are trying to build a niche business.