Newly minted financial advisers often experience a mix of euphoria and panic. They’re thrilled to dive in and help clients navigate their financial future, but they’re overwhelmed by the complexities of launching a practice.
Just as professional baseball players fight off the jitters in their first appearance in a major league game, advisers find that despite all their diligent preparation, the first few months of building a business can prove nerve-wracking. Mastering the intricacies of managing and marketing a practice, communicating with clients, and handling administrative and compliance duties can stymie the most organized, motivated go-getter.
Fledgling advisers need not go it alone. By enlisting a mentor to guide them, they can benefit from the experience and wisdom of someone who has overcome such challenges.
Deanna LaRue can attest to the value of a supportive mentor. Soon after graduating college and starting her financial planning career, she connected with Kyle Brownlee, a successful wealth manager.
They met in 2005 at a conference sponsored by HD Vest, an independent broker/dealer. Hearing Brownlee speak then and at subsequent events, LaRue concluded that he was ideally suited to help her hit the ground running.
“He was just a few years older than me, and I felt he could relate to me,” recalled LaRue, a certified financial planner and president of TimeWise Financial in Woodstock, Ga. “His approach resonated with me. I thought, ‘That’s how I want to do things.’ He had already acquired several companies and he was among the top 10 [wealth managers] in the company.”
Because HD Vest offered a mentorship program, it was easy for LaRue to sign on with Brownlee. They began by scheduling monthly coaching calls to discuss specific client cases.
Now 37, LaRue remembers how Brownlee helped ground her business sense. “When I started 13 years ago, I was looking for that magic ticket,” she said. “What will bring me lots of clients? Kyle taught me what worked and what didn’t work.”
LaRue sought advice from Brownlee in three main areas: prospecting, practice management, and client retention.
To convert a prospect into a client, LaRue learned how to conduct an introductory meeting in an engaging manner. Brownlee suggested that LaRue structure the conversation to maximize relevant information gathering.
“He helped me script the initial meeting to learn more about the client,” she said. “I still use the same approach today so that I don’t miss anything and collect all the data that I need.”
To run her practice more efficiently, she learned to set up repeatable processes. Organizing every aspect of her operation to streamline workflow and create seamless systems to assure quality gave her a template to follow as her client base grew.
Retaining clients largely revolves around effective follow up. For example, LaRue cultivated stronger relationships with her clients by sending them a one-page recap of her year — with a mix of personal and professional news — every December. “It’s a holiday card with a personal touch,” she said. LaRue found that clients welcomed such outreach and enjoyed her family photos and friendly tone.
Brownlee also worked with LaRue to develop reports and investment education tools that she’d periodically share with clients. By giving them easy-to-understand updates on their portfolio, she found that they were more apt to buy into her investment strategy.
LaRue urges advisers who seek out a mentor to listen with receptivity. Ask lots of questions and stage experiments to test a mentor’s suggestions. “You have to keep an open mind,” she said. “And you have to be committed to working with your mentor.”
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