Risk curve

You may be thinking – "that's not true – when I first got into the business, I took plenty of risks, I made big goals and did what I needed to do to achieve them." Undoubtedly, this is true. In looking back, you had to, to survive in the business. But now, is your length of service holding you back?

When I look at an advisor's length of service, it inevitably starts with a risk curve. In the first one to five years of business, advisors are prone to develop and act on grandiose ideas. But as the years go by, the willingness to take risks decreases significantly. It's easy to become protective of what you've built, and by the time you hit a 25 – 30-year tenure in the business, advisors tend to take noticeably less risk.

Many get into this business based on a specific premise: work hard early on, build a strong business, and later you can comfortably service your client's needs and continue to grow via referrals. This has been a solid business progression for many in the field for many years. A self-sustaining practice is very attractive. If you've chosen your path and are happy with it, there is truly nothing wrong with that. It is hard to always be in growth mode.

On the other hand, if you consider that career progression and think, "Is that all there is?" This article is for you, someone who has been in the business for a while but is still looking for ways to still have a big impact and experience significant growth. If growth is what you desire, in the model I just described, most advisors don't garner enough referrals to continue to grow at their desired pace. If you want long-term sustainability and profitability, it's crucial to stay in growth mode.

Undoubtedly, your business grew over the last decade. But did this happen because of significant client acquisition? Or did the lion's share of your growth come from the market rate? 

If momentous growth is what you are looking for, the best option is through client acquisition. 

What holds advisors back?

There appear to be four common themes that hold advisors back.

The first is courage. It can be challenging to act on a big idea, particularly when you've gotten comfortable with the status quo. I think the one sentence I repeat when I create articles like this is the following – I cannot stress enough how important it is to get comfortable with being uncomfortable. 

Next is a lack of willingness to invest time and money. Big ideas aren't easy and don't fall into your lap. They require an investment of anything from time, money, and resources to creativity, outside-the-box thinking, and innovation. 

Your agenda can be a roadblock to big thinking. Advisors are very good at sticking to an annual business plan. You hold regular meetings to review and track progress and hold yourself accountable to your goals. In those regular meetings, does client acquisition get equal time on the agenda instead of just client services? Perhaps thinking bigger about your agenda  with a client acquisition first approach, can help you to achieve your goals more quickly or introduce you to untapped audiences.

Is your team holding you back? This could be anything from having the wrong people altogether to having the right people but in the wrong roles to a lack of proper management and motivation. 

We already identified that risk adversity happens early on, so getting back in touch with your roots and, in particular, the courage and drive that you had earlier in your career could be tremendously beneficial today.

Be a bigger, bolder advisor

Maybe knowing that we don't have to invent a replacement for the sun can take a little pressure off our shoulders? But that doesn't mean that client acquisition isn't hard work, but committing to big, new ideas can be an exhilarating challenge. I'm not just suggesting that you try something hard because it's hard. I'm recommending it because it is lucrative.

At this point in your career, you've undoubtedly earned some recognition. You are good at what you do and likely have a unique perspective. How do you harness your years of experience and talent into big ideas that introduce you to new, prospective clients?

Here's the good news – there are plenty of opportunities for you to think and, more importantly, act big.

Before I give you my list of big ideas, there are a few things to keep in mind. Like everything, investors are changing. What are you doing now to understand the next generation of investors? Do they look like your current clients? Probably not. They are more tech-savvy, get their information from a wide variety of sources (many of which are not traditional media outlets), and are very good at educating themselves and developing online communities to do so. Keep this in mind while you consider what could be your next big move.

Big ideas

Not all of these ideas will be right for everyone. Maybe none of these are perfect for you and your situation; however, it's a good list to start your creative engine. Consider what you do well and what is important to you. Now think about what challenges you – that's the perfect intersection for your big idea. One caveat – make sure that the challenges don't make you so uncomfortable that you won't follow through.

1. Write a book I bet you have a bunch of great anecdotes about a life in advising. Maybe there's a great theme or lesson that you have to share. Or it could be that you've developed a process that can't fail when it comes to a new business acquisition. What is that one piece of business that you know you do better than anyone else? Book writing is complicated, time-consuming, and requires an investment of money and resources. However, it will position you as the expert among experts.

2. Start a weekly podcast or radio show Podcasts are a fantastic vehicle when done well. Think about the people you know in the business who are great conversationalists. First, think of the podcasts you currently listen to. Next, you can probably think of five engaging, informative, and entertaining potential guests right off the top of your head. A good 20 – 30-minute podcast can gain excellent traction. Perhaps each week is on a specific topic; maybe it's looking at standard practices with new eyes, or possibly it's demystifying new industries and investment opportunities. When you look at the range of podcasts available, an overwhelming amount of topics are represented. What can you bring to the table that is unique, interesting, and educational?  Heck, you might even be able to monetize the podcast with advertisers if you grow your listenership.

3. Perfect the next-gen of seminars After a year in quarantine, it's clear that seminars will never look the same. The people who have done it the best over the last year have figured out how to harness technology and virtual conferencing interactively and engagingly. They realized how to take the best parts of in-person seminars and combine those with modern technology. Think about the very best virtual event you attended this year. What would have made it even better? Of all of these ideas, well-done seminars will expand your reach like never before.

4. Hire a consultant or create a new position Are you good and truly stuck? Hire someone to help you think about client acquisition and getting your name out there differently. Just as your future clients are evolving, marketing is inevitably becoming more complex. Do you understand how to navigate digital marketing in a way that can genuinely move the needle? If not, hire someone to do it for you. Give some thought about whether a consultant or a dedicated staff person will provide the most benefit to your business. Would you be better served by a dedicated acquisition person, or would a sales coach move the needle in a more meaningful way? 

5. Create a Video Series Having a video library of compelling, well-produced content is a treasure trove. You can use it in a myriad of ways, from social media to your website and perhaps sharing beyond your networks.

6. Shake up your current marketing I am confident that I am not alone in thinking that an awful lot of marketing (whether it's radio, tv, print, or digital) is stuck in a gulley of sameness. There is a shocking lack of originality in selling what we do, and really, it wouldn't take a lot to stand out in this sea of conformity. Hire a good ad agency to reconceptualize your materials – instead of looking at who handles your competitor's accounts, maybe select a firm with ZERO advisors as current clients. The fresh eyes and unbiased approach could help to modernize you in the eyes of potential clients.

7. Become an expert Experts are specialists in a particular arena; consider a PCP versus a cardiologist. Could you become a go-to person when there is a question on financial advising? A skilled Public Relations consultant can help you to tackle this. Locally, developing relationships with media, being readily available to answer inquiries in a thoughtful, educational way can be a cost-effective way to gain greater name recognition and authority. There are also many ways that a professional can connect you to even larger audiences and publications.

8. Get a byline in industry pubs How many e-blasts from websites and publications do you receive each day? In all probability, you currently have several good ideas floating around your head that developed into an 800-word post that would be an intriguing read. Take a crack at developing and refining a few ideas and reach out to the publications. If polished writing isn't quite your forte – hire a writer to help.

This is truly just a start. I'd venture that if you have the motivation to be aggressive in your growth, you also have the creative thought to harness your big idea. Don't let the fear of taking risks stand in your way. You didn't quite a few years ago, and it paid off then, and it can and will pay off again. 

John Pojeta has been the VP of Business Development at PT Services for ten years. John researches new types of business and manages and initiates strategic, corporate-level relationships to expand exposure for The PT Services Group. John came to The PT Services Group in 2011. Before that, he owned and operated an Ameriprise Financial Services franchise for 16 years.