The right coach can help you transform your practice from good to great.
But how do you find a great coach? What makes the difference between good and great coaching relationships? These are critical questions to answer before you hire a coach. I’ve gained valuable insights during my decades of experience as a Certified Financial Planner in multiple roles.
Those of you who already have a successful, smoothly running practice may be ready to stop reading. I get it. What value could a coach offer you? That’s a fair question. Before you disengage, here are three things to consider:
Perhaps you have reached a point in your practice where there is more you want to do or offer to clients, but you don’t know what it is. Or perhaps you have an idea of what you want to add but you don’t know how.
Your life situation has changed and you need to work less but still require the same income. Perhaps you’re seeking a better work-life balance. You have a family of three, and number four turns out to be twins! You want to spend more time with family, but you still enjoy your work.
The average economic cycle of expansion, peak, contraction (recession) and trough in the U.S. is five to 10 years. Practices that run smoothly in periods of expansion and peak can go through turbulence during contraction — sometimes enough to cause a seemingly solid practice to crash and burn.
An experienced coach can help with each of these scenarios, including helping you determine if there are ways to “crash-proof” your practice. .
The Search
The first step is to find a candidate. Looking online is certainly one approach, with a wide variety of search tools available, including AI. My preference is more personal; I like to network. Ask colleagues if they’ve had a coach they would recommend. This is when membership in an industry association like the Financial Planning Association can prove useful. Within the group you may find a nexus of advisors connected by a coach or coaches they have used and like.
In the hunt for a coach, mentorship can be an unintended but interesting bonus. You may find a more experienced advisor who would enjoy the opportunity to mentor you. This can even work for a veteran advisor. The search for a coach may lead to another advisor, maybe even a colleague, who specializes in an area or skill you would like to better understand or perform.
Once you have identified one or more coaching candidates, the next step is a conversation. When evaluating potential coaches, take time to:
Interview multiple candidates.
Check references thoroughly.
Discuss their coaching philosophy.
Five Key Considerations
Whether you’re seeking to elevate your practice or overcome specific challenges, here are five crucial qualities every financial advisor should look for in a coach. This should be familiar territory to you as a financial advisor. Why? This is basically a discovery meeting, only it is with your coaching candidate instead of a client. You are in control.
Proven Track Record Building Trust
One of my favorite sayings is, “The main thing is to keep the main thing the main thing.” What is the “main thing” in the world of financial planning and advice, and the most important asset of a financial advisor? Trust. Trust is the currency of relationships, especially when discussing money and financial planning. Over the long term, money follows trust. That’s why trust, not money, is the holy grail in our business.
Your coach should excel at building and maintaining trust. Here are three competencies that will likely reveal a coach’s ability to build trust:
A history of long-term client relationships.
Strong references from other advisors they’ve coached.
Clear methods for building trust with clients.
Commitment To Values-Based Leadership
Aligning your practice with your core values and beliefs is essential for long-term success. A good coach understands this and will help:
Clarify your own values and beliefs. Most advisors know their values and beliefs. The challenge is alignment.
Guide you in aligning your practice with these principles.
Demonstrate strong ethical principles in their own practice — “walk the talk.”
Remember, beliefs determine values, values determine character, and character determines actions. A good coach will help you build, align and refine your practice on this solid foundation.
Understanding of Behavioral Finance and Client Psychology
Financial planning and advice isn’t just about numbers and technical analysis. In addition to financial dreams and goals, it also includes how clients think and feel about money, their family dynamics and legacy planning.
Behavioral finance started to seep into financial planning in the late 1990s. The science of financial numbers and technical analysis was invaded by the emotions, behaviors and feelings of clients. This introduced the artistic side of financial advising to the world of financial planning.
It is now maturing into an “artful science.” Your coach should have an understanding of:
How emotions impact financial decision-making.
Ways to address client fears and concerns.
Techniques for guiding clients through difficult decisions.
Strong Discovery Skills
Discovery is one of the most important aspects of the financial planning process and an indispensable skill of an accomplished financial advisor. While one meeting in the financial planning process is identified as the discovery meeting, it is important to remember discovery is an ongoing process and not a one-time event. ABD (Always Be Discovering) is a good acronym to remember when considering the importance of discovery.
The best coaches demonstrate and teach effective discovery through:
Asking thoughtful, probing questions.
Listening actively and identifying underlying issues.
Helping you uncover “blind spots” in your practice.
Teaching effective discovery techniques for client meetings.
Experience Across Multiple Industry Roles
A coach with varied experience can provide insights from multiple perspectives. The ability to see the long-term ramifications of actions today can be critically valuable — providing more comprehensive guidance for your situation. Look for someone who has worked in different capacities within the financial services industry, including:
Advisory practice management.
Compliance and regulatory oversight.
Investment management.
Business development.
Evaluating a Coaching Candidate
The right coach, embodying most or all of these five essential qualities, can help transform your practice from good to great. When evaluating potential coaches, consider how they demonstrate each of these qualities in their approach to coaching. Look for someone who:
Asks thoughtful questions during your initial conversation.
Shares concrete examples of how they’ve helped other advisors.
Demonstrates a clear understanding of the industry’s complexities.
Shows genuine interest in your goals and challenges.
Has a structured approach to coaching relationships.
Success in this industry isn’t just about technical knowledge — it’s about building trust, understanding people and consistently delivering value to your clients. Delivery of value is one of the critical components of client retention. The right coach can help you master all these elements while staying true to your values and beliefs. Happy hunting!
Steve Manuel has held the CFP designation for almost 40 years. During that time he successfully ran a solo practice for over 10 years; led national distribution of all the life company products for SAFECO Life and Investments to RIAs, agents, broker-dealers and banks; and spent 15 years as a member of the USAA financial planning leadership team. At USAA, he observed and coached thousands of financial planner-member meetings.
