As the owner of an independent financial firm, the success of your business begins and ends with the development of your brand. In today’s climate, convincing potential clients to trust you with their hard-earned money and what makes you the most qualified in the industry is crucial. Unlike big-name firms like Wells Fargo, Goldman Sachs, or Morgan Stanley, who already have a reputation and have been doing business for years, you’re likely starting from the ground up. While you may have the expertise and a qualified team on your side, your business still has something to prove. So how can you build a strong brand that fosters trust and increases clientele?
As many of us know, brand recognition is key in any industry; but as a financial advisor, your brand is you. While marketing campaigns, extending reach across various social media platforms and news outlets, and holding educational seminars are important building blocks to your firm, it is your clients who are the foundation. And, it starts with them.
How Not to Fail
As you’re growing your business, building strong, lasting relationships with your clients should always be your first priority. Throughout my career, I’ve learned that the key is to be authentic, harbor genuine kindness, and be able to form opinions and stand firm in the guidance you provide. If you and your team fail to develop and exude these qualities, it creates a weird and awkward environment for everyone involved, leaving potential clients to question your motives and intentions.
“Impressions matter and people will always remember how you made them feel.”
Recently, my son was in my office. He likes to come in from time to time to observe. On this particular day he turned to me and said, “Dad, I like the way you do business. You talk to everyone just like you would talk to me or to one of your close friends.” He didn’t know it at the time, but his words were a huge compliment. Impressions matter and people will always remember how you made them feel.
Another effective skill in building lasting connections with your clients is having the ability to communicate with your clients not just in the good times, but through the bad as well. It’s easy to call your clients when markets are trending upward and investments are outperforming, but can you be there for them when things turn volatile? Far too often, I see advisors take the “ostrich’s head in the sand approach” when things get tough.
Communicating market-related losses, asset or estate issues, debt or liquidity concerns, or other factors that may hinder a client’s ability to reach their financial goals are difficult but necessary conversations. Your job as an advisor is to prevent them from making decisions based on emotion, serving as their voice of reason and guiding them toward their next-best course of action. If you’re able to help them work through that situation and serve as a guide, not only are you building trust, you’re also increasing the likelihood of them referring your firm to their friends and family members. And that’s also a win.
Also Essential: Thick Skin
Being able to review and improve those relationship-building strategies is also necessary to growing your business and your overall brand. Don’t be afraid to poll your clients and be open to accepting their feedback. It’s better to find out what you need to improve on now rather than after the client has left.
When it comes to accepting negative feedback, the best advice I have is to take it and own it. If your client has negative feedback, it might be difficult to hear but it means they care. If they didn’t, they would leave and find another advisor. Having the ability to receive the feedback and self-reflect is all part of the process.
Connecting with clients is key to building a strong brand. Without them, you have nothing. If you’re a financial professional who is thinking about branching out and starting your own independent firm, it’s important to always put the client first. Whether it’s helping clients prepare an estate plan, or helping them achieve retirement someday, they’re the reason behind it all. Set your purpose, focus on building and maintaining relationships, and provide quality service — that’s the key to growing your brand.
John Chatmas is the CEO of Waterloo Capital, a thriving investment advisory firm in Austin, Texas. He attributes much of the success the company has experienced to the culture that he has been intentionally cultivating for approximately the last 10 years. John’s goal is to empower accomplished entrepreneurs, executives, philanthropist, and the other outstanding individuals who shape our world to not only achieve their financial goals, but to exceed their dreams for themselves and those they love.
