Advisors often panic in economic downturns, throwing best business practices out the window. But the advice for advisors is the same as at any other time: Don't overreact or overcorrect. Here are tips for survival in today's market:

• Avoid the triple threat: (1) Reduction of fee revenue due to a decline in AUM; (2) lost time that could have been spent building the business; and (3) outlay of cash for new marketing activities.
• Stay focused on process. Avoid being too reliant on the hottest new product. A solid process that is laid out in writing and reviewed regularly with the client pays dividends in market turmoil.
• Have a sound investment philosophy. It keeps you focused on what's important in client relationships and keeps you from relying on "new paradigms."
• Systematize your practice. Have staff and advisors think through the entire client service process, using either outsourcing or procedural manuals—or both—to remove inefficiencies and keep your higher-paid hours from being spent performing lower-paid services.
• Charge for your value. It's now acceptable to charge for an initial financial plan and then for financial and investment planning services. Each service has a value; if you blend them together, that value can get diluted.

Jonathan Scheid, CFA, is executive vice president of Bellatore, a financial services firm in San Jose, Calif.