Getting a financial advisory practice up and running can be a Sisyphean task. To make matters worse, many ambitious young advisors make the mistake of trying to do everything themselves. A much better approach, says April-Lynn Levitt, a coach with The Personal Coach in Calgary, is to find a mentor to be a professional guide.
“Trying to do it all by yourself is a mistake rookies make,” says Levitt. “Having a relationship with a senior advisor who is not your boss can be invaluable.”
But finding the right mentor is no easy task. Another option is to create a “study group” of fellow rookies to talk about what is working or not in your practice. Whichever option you choose, Levitt says the net benefit is the same: by having a strong support network, you are no longer trying to succeed against discouraging odds.
Levitt offers some further words of wisdom to rookie advisors looking to build their business:
> Stay on task
Being an advisor allows for a fair degree of flexibility in scheduling, compared to many 9 to 5 jobs. But this can be a trap for the undisciplined, Levitt cautions. While most advisors take their jobs seriously, there may be temptations to stroll into the office an hour late, over-socialize or take long lunches.
Although these activities might seem enticing, the long-term consequences of cutting corners will likely not play out well over the long-term, particularly, when it comes time to review production targets. “The advisors that are most successful are usually the first ones in the office and the last ones to leave,” says Levitt. “Keep interruptions and non-productive activities to a minimum. When you are at work, just work.”
> Set reasonable goals
Too many rookies make the mistake of trying to be “all things to all people,” says Levitt. Much like a top professional baseball prospect, new advisors may be tempted to take the world by storm – and end up fading under pressure when they do not obtain immediate success.
Instead of trying to be an overnight success, set out specific goals. These could include, for instance, the number of your appointments per week; the number of prospect calls you plan to make or the number of new centre of influence partnerships you hope to establish.
Setting these attainable benchmarks will help keep you feeling positive and, like an elite athlete, help you build up your endurance over time.
> Work on, not just in, your business
Another common foible of rookie advisors is not spending enough time working on the foundations of their business, says Sara Gilbert, founder of Strategist, in Montreal.
“Rookies are often so busy working to sign new clients and get more assets that they forget to build a solid foundation for their business,” she says.
Levitt agrees. She says that the most successful advisors are able to see the forest for the trees — and book time for strategic planning every week. This could include business planning, working on new marketing projects or trying to develop new relationships.
“It can be tempting for new advisors to skip this important stage,” Levitt says. “But the advisor who can start this habit right from the beginning of their career will have greater success in the long run.”
This is the second installment in a four-part series on common rookie mistakes.
Tomorrow: Investing in yourself – and your business.
For more on how to work with a mentor, see Investment Executive, How to work with a mentor, Oct. 15, 2012.