She grows her firm by targeting clients who share her life experiences.
We asked RIAs from across the country to share the best piece of advice they could give to their fellow advisors. Click to explore what they said and gain insights that can help your business flourish!
Invest in your team
Your associates and staff can be crucial to making sure your business runs smoothly. That’s why it’s so important to nurture each employee’s career path as you would your own. When you find out what motivates each one and play to their strengths, you can help decrease turnover and create a positive chain reaction that helps your business flourish. Because when your employees are happy, your clients are happy, too!
Focus on profit, not revenue
It’s an easy trap to fall into, but many RIAs only see revenue when signing a new client. Instead, it’s important to remember the costs associated with each piece of new business. In addition to manpower, remember to factor in rent, utilities, outside vendors, and other business costs. The amount you have left over is your true profit. Once you’ve started operating within realistic profit margins, you can more effectively focus on helping your clients’ portfolios grow.
Financial choices affect your clients and your business
With every investment you make in your business, make note of how it affects your book value. In theory, this number should only remain stable or increase over time, even when market activity fluctuates. To help achieve this, avoid spending or investing money you know you’ll need within a short window—that would be a risk not worth taking.
Trying to market to the customers who have the most interest in your services may seem like a more effective way to advertise, but it could cost you a pretty penny. By expanding your horizons, you can reach those same potential clients, plus some—all while spending less money.
Know your clients inside and out
Be sure to truly listen to your clients, find out what makes them tick, and take the time to show them how their needs influence your recommendations. Keep the lines of communication open, even when returns aren’t great. And remember—if you’re ever struggling over a decision, the best way to go is always the choice that does right by your client.
An RIA from New York
Chances are you have the experience and know-how needed for your business to flourish. Remind yourself of this often and let it help motivate you to be a trailblazer. When clients know you’re confident, they are likely to take your lead.
Follow your vision
As Yogi Berra once said, “If you don’t know where you are going, you’ll probably end up someplace else.” This can be especially true for RIAs. By discovering your specialty and sticking to it, it can help effectively differentiate you from the crowd and keep your business on its intended course.
Embrace being part of a larger community
Don’t go it alone. Surrounding yourself with the right team and clients can make a world of difference when it comes to accomplishing your goals. It’s equally important to show your support to causes you are passionate about. Your participation could be key to helping you connect with colleagues and potential clients.
Choose the right custodian
Having the right custodian can make or break your business. Be sure to find one that shares your values and offers the tools, resources, and community support to help you pursue success without adding more competition into the mix. If you’re unsure of where to start, try asking other RIAs about their custodial experiences. Their advice can make vetting your options easier than you think!
When it comes to being an RIA, you deserve to be in the limelight. So, get in touch with your musical side by taking our Unleash Your Inner Superstar quiz.
A solid value proposition is the foundation for the decisions you make, the services you provide, and the way people see you. This guidebook can help you create one that resonates.
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