5 Best Tips for Startup Advisors
August 29, 2013 3:06 PM
This transformation didn't happen overnight,Grant writes.
It took me four years to develop this dream, and nine months of long nights and early mornings to make it a reality. After talking about it for such a long time, it seems slightly surreal to be living it.
Some advisors have become successful by being generalists, but I believe specialization is the future of financial planning -- and that planners who develop a niche will become successful a lot more quickly than those who do not, Grant writes.I've chosen to focus on teachers, a niche that also includes my wife as well as several family members and friends. My wife's benefits are a key part of my own financial plan, and I know several people facing similar issues,Grant adds.Even if these people don't become clients, my casual conversations with them have given me priceless insight into their world.
A year ago Alan Moore started his own planning firm, Serenity Financial Consulting in Milwaukee, Wis. He was 25 at the time. He didnt start off with a clear niche, and says that was a mistake. Now Moores ideal clients are under 45 and are high-income, low-net-worth savers.My niche doesnt revolve around a profession, but instead around a personality type,he says.
Advisor coach Robert Sofia, founder of Platinum Advisor Strategies, agrees that developing a niche is crucial to a new planners success, but says its important for advisors not to rush it.It usually takes time to figure out your niche, and what it ends up being might surprise you,Sofia says.Be patient. Be selective. The right niche will usually be discovered with time.
Some vendors want to sell you products. Better vendors are willing to educate you,Grant says.
The biggest thing for vendors is how supportive they are for startups.
Become independent and represent as many companies as possible,he says.
You have to be able to bring a lot of options to the table to be able to really take care of a client the best way.
One of the big fears my wife and I had about me being self-employed was losing a steady paycheck. Some people are happy to live off of savings while they launch, but as a fiscally conservative family, we did not want to tap our savings for income,writes Grant.
If you hold onto a lifeline forever, you'll never learn to swim,Sofia says.
Try to wean yourself away from distractions like secondary sources of income as soon as possible. Running a successful solo practice requires tremendous focus.
What strategies are we thinking about to generate clients and revenue? Here's what I think we should do. ...
Do you realize what you just said?I asked.
You said 'We.'
Its hard in a solo practice,says Adam Nugent of Foresight Wealth Management in Sandy, Utah.
You need to have an understanding spouse or significant other who can be flexible and understands that you might have to work nights or early mornings, or in some cases when you first start, on a weekend. The work/life balance in this industry is a juggling act, especially when you work as a sole practitioner.
The hours can be demanding, Hayes notes.In order to make it in this business, you will have to sacrifice some things. You cannot only work 30 to 40 hours a week.
Despite the challenges, these advisors have found the experience rewarding. The best part?Starting from scratch and building something out of nothing,Hayes says.
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