While investors and advisors are caught up in the recent market turmoil, news of the Coronavirus, lets fast forward one year from now, shall we? We have all been through events and market turmoil like this before. The challenge is not what happens to you, it’s how you respond that makes the difference.
Fast forward one year
Imagine you are meeting with one of your top clients in a year from now in 2021 for a progress update. Markets are still volatile and bumpy, and their portfolio continues to be down. What questions will they be asking you at this meeting? Am I going to be OK? I truly believe that this will separate successful advisors of the past, to successful advisors of the future. This is where you can discuss the probability of success in reaching ALL of your goals with your comprehensive plan. You can show them on one page that they will be ok, and the plan we put in place has not only to keep you on track, but your goals based plan will continue to guide them to make better decisions for their future. Here’s the problem. Most advisors don’t have a goals-based plan to follow up on, that is why they wing the conversation.
Think back ten years ago
For example, if you were an advisor like I was in the 2008-2009 crisis when it was all over, and things started to stabilize, how did your clients feel that you handled the volatility? Did you have a script that you shared with clients and prospects that were consistent? Or did you wing your answer ever time depending on the news of the day? Did you show leadership and direction, or waffle in your words?
Your words are powerful
You know your words are powerful. You manage millions of dollars and have a deep level of trust. Your words and communications are powerful. I recently practiced with several advisors I coach on how to respond, what they were saying and how clients were reacting. Several advisors had a choppy response, they winged it on the top of their head, and when I asked them to repeat it they couldn’t.
You cannot wing it on Shark Tank (ABC TV Show) or Dragon’s Den (CBC TV)
What happens to people who wing their answers on reality TV shows such as shark tank or dragons den? We laugh and they exit the building, with a terrible experience. You cannot wing it wit your ideal clients and prospects. Have you communicated with your best clients and prospects? By email, phone call or both? Is it a proven script that shows leadership and direction? Have you communicated with both spouses or partners? This was a big mistake I made in the past, and I don't want you to make. Clients and prospects will repeat your words, or stories to family and friends, making you the most referable advisor. Think about it. The easiest time to grow your business is when your competition is assuming everything is fine. Your biggest benefit is managing human behavior, for it is one of the biggest factors in managing wealth. If you think human behavior is different this time, your wrong!
After reading this article, fast forward to one year. You have a communication plan set up for times like these, with a proven scripted process. You practice your script so you can articulate it with belief and conviction. You can look back knowing you gave your clients confidence, leadership and direction and you acted continuously on a comprehensive goals-based plan. Without a plan, who knows where your business will be in one year. Who leads you as an advisor during these challenging times? The elite financial professionals always turn to their coach or mentor to manage their behavior.
How about your goals for your practice in 2020? Practice management checklist
While each financial advisor's practice may have a different approach, advisors need to understand where their practice needs help, and will they get the right help for the right part of their practice. What areas does your practice need help with? Get a copy of our comprehensive practice management checklist by going to our website.