When I started in this business in 1992, it was a different world.
On my first day on the job, I was stumbling through commands on my Quotron machine, taking too long to complete a trading request for an impatient client. Looking ahead, we will live in a world where software can think and communicate like a human can. It will be a huge adjustment for all of us, but it's also an incredible opportunity, whether you have an existing advisory practice, or you are just starting out.
So many predictions are coming to pass. The generational wealth transfer is happening now. Advisors can run their entire advisory practice in one seamless, integrated experience. Serve clients you might never meet, and through data-driven tools, still maintain a deep connection to them. You can see your business performance in real-time, break that down to specific firm roles, and do it all without needing to be a data scientist. To take advantage of all this potential, there are capabilities you should develop and deploy into practice now so you’re ready to evolve as the industry evolves. Here’s a quick outline of three steps that I think are critical.
your practice’s trends or drill down to individual workflows. By doing so, you’ll leapfrog traditional challenges RIAs have faced, such as trying to gauge what’s driving firm growth or not knowing a client's satisfaction level. At the same time, make sure all your processes are organized, simple to complete and feed into that data stream. You can build a practice where your workflows are highly automated. Nothing gets missed because actions are created and tracked, simplifying operational and compliance reviews.
As you build a tech stack that works seamlessly together, build a team that works the same way. Surround yourself with people who share your values and are passionate about their work. You want people willing to challenge ideas and find creative solutions to problems. Camaraderie is a fundamental quality of the company I’ve built because if you respect and care for the people you work with, you’ll achieve so much more. Empower them, too, with the right resources so they can get the job done, and if they see a problem that should be fixed, be open to taking that feedback. Your best resource is always your people.
You must rely on something in addition to referrals to grow your business. To grow organically, you'll be competing for prospects online. That means investing in branding and marketing, using metrics to set goals and targeting the client that fits your practice best. Your online messaging should deliver your firm ethos and engage with clients as if you were meeting in person. As a prospect, I'm moving on if there isn’t a unique value proposition that drives connection, or if you make it hard to contact you. The mistake many advisors previously made was that they skimped on marketing and had cookie-cutter branding. You need to stand out, your unique strengths must be communicated clearly, and you need to engage with prospects through video and social media constantly. Whether you are a solo practitioner or at the head of a firm, put a lot of work into your brand. You are your best advocate.
Let me leave you with this: The only thing that’s stopped other RIAs from doing these things was fear of change. Don’t let that be a hurdle for you and your team.