Words of wisdom for rookies (and veterans!)

(April 2006) As the years go by, and our practices grow, we sometimes forget the trials and tribulations we endured on our way to success.

That’s not necessarily a good thing. If you don’t give yourself an opportunity to sit down and assess some of the lessons you’ve learned — both good and bad — you’re missing out on a good deal of professional development. As the saying goes, those who forget the past are condemned to repeat it.

So let me ask you these questions: if you had to do it all over again, what activities would you repeat? What ones would you do differently? Which opportunities would you pursue, and which would you turn down? What mistakes would you try to avoid? How would you structure your business differently? What "words of wisdom" would you pass along to someone just starting out in the business?

I recently asked several established advisors these questions. Not only do their answers serve as excellent advice for rookies, they are a good reminder for veterans of what it takes to succeed in this business.

>> In this article

• Jim Rogers • Cindy Boury • Thane Stenner • Paul McMillan

Jim Rogers: It’s all about the client When it comes to experience, Jim Rogers has plenty. He started in the financial services industry back in January, 1968 with Imperial Life. He founded his own firm, Rogers Group Financial Advisors, in 1971.

Having mentored many associates and partners through the ranks of his own firm, Rogers has a wealth of experience on what an advisor has to do to be successful. But his advice for rookies remains simple: understand the client as a person, rather than an account. "This business isn’t about numbers," he explains. "I think that’s an idea that often gets lost when you’re just starting out."

"Advisors need to connect with their clients on an emotional level. You need to listen to them," Rogers explains. "Ask them how they feel about their money." By engaging the client on the level of emotions, you can forge stronger connections with the client. "When clients see that you understand where they’re coming from, that’s when trust begins," he says. And as Rogers explains, everything flows from that key point of trust. "Once they trust you, then they will do business with you, and many will also refer you."

This basic advice is the best way an advisor can bulletproof clients from competitive pressures. Rogers still sees a lot of advisors focus too much on what the competition is doing. "If they just took care of their client relationships, the competition really wouldn’t be a factor," he says.

Jim’s words of wisdom:

• Talk 1/3 of the time and listen 2/3 of the time during client meetings.
• Always ask open ended questions to facilitate conversation.
• Ask how a client feels about an issue — not what they think about an issue. People buy on feeling (and, later, may justify on reason).

Cindy Boury: Like attracts like Cindy Boury’s path to success has been a little different. Before becoming an advisor, she had been involved in a number of community causes, and sat on the board of a variety of not-for-profit associations. When she decided to become an advisor ten years ago, these associations became a natural place to seek out clients.

What are your words of wisdom?

What have you learned during the course of your career? Offer your words of wisdom and share your advice with your colleagues on the Advisor.ca town hall by clicking here.

Looking back, Boury says joining these associations was one of the best career moves she made. She recommends rookies take a similar approach, getting involved with associations and causes that matter to them. "It will pay dividends throughout your career," she says. Not only are associations a good place to seek clients, they are a good training ground to brush up on business etiquette, follow-up skills, mentorship, and structure.

Another strategy that worked for Boury was to seek out other people in the same situation as herself. Early in her career, she developed close relationships with a number of business women. Because of her own life experience, Boury found it easy to work with them — she understood their concerns, she appreciated the challenges they faced, and shared many of the same goals. The ease with which she connected with these clients led her to focus her practice on offering wealth management skills for women. "Like attracts like," she says. "I never have to worry about firing a client, because my clients are just like me!"

Cindy’s words of wisdom:

• Be visible in the community.
• Seek out client relationships with people who share your interests, your passions, your goals.
• Be the client: imagine yourself in the client’s shoes — the solutions will flow from there.

continued on page 2

>> In this article?

• Jim Rogers • Cindy Boury • Thane Stenner • Paul McMillan

Thane Stenner: Find out what you’re good at Ask him what advice he’d give to a rookie, and Thane Stenner is quick to answer: "The first thing you have to do: find out what your good at," he says. "Then delegate everything else."

Stenner goes on to explain how most advisors fall into one of two camps: (a) the "big picture advisor," who excels at establishing and maintaining relationships, and formulating long-term financial strategy, and (b) the "details advisor," who loves to get involved with the nitty-gritty of portfolio building and analysis. While Stenner knew from the start he was in the former camp, it took him several years to develop a system that allows him to delegate "details" work to well-qualified team members. Now that he’s found top-quality people to fulfill these roles, it’s better for the entire team. "Everyone is doing what they love to do," he says. "And they’re happier for it."

Stenner has taken this basic advice — focus on what you’re good at — and applied it to his practice as well. Five years ago, he and his team were investment generalists, serving over 1,100 client families. It was a thriving practice, but Stenner wanted to focus more on serving the clients he connected with: high-net-worth business owners and executives. He decided to sell most of his book to associates, and make the move to a high-net-worth practice, serving those with more than $10 million in investable assets. The transition has been a good one, according to Stenner: "We’re more focused now," he explains. "Our clients are 100% committed to us, and we’re 100% committed to them. That’s the way it’s supposed to be."

Thane’s words of wisdom:

• What do you love to do? Find out as quickly as possible, and delegate everything else.
• Don’t try to be all things to all people. It’s OK to say "no" to a client who doesn’t fit your ideal client profile.
• Know your niche. Find out everything about the people you’re serving. Try to anticipate their needs. "Wow" them with outstanding service.

Paul McMillan: Enthusiasm is infectious Paul McMillan is a member of a highly-successful practice based just outside of Vancouver. Together with his partners, he manages approximately $280 million on behalf of clients. The secret to this success comes down to one word: enthusiasm. "This is the kind of job that you have to love what you do. Your clients will be able to see it if you don’t."

What are your words of wisdom?

What have you learned during the course of your career? Offer your words of wisdom and share your advice with your colleagues on the Advisor.ca town hall by clicking here.

This enthusiasm can be an excellent marketing tool for both rookies and established advisors: "When people see that you’re passionate about what you do, they want to be on your side," McMillan explains. "It’s infectious," McMillan says. "Clients will tell their friends and family about your enthusiasm, and refer you to them."

McMillan is also a big proponent of being disciplined about prospecting. "Discipline isn’t just for clients — you need to hold yourself accountable too." To that end, McMillan spends at least half of his day meeting with clients and prospects — a target he set for himself early in his career. He has always held three "mini-marketing campaigns" a month (i.e. an RRSP drive, cold calling drive, a community event, etc.). "This keeps me focused on my goals. Very important when you’re in business for yourself."

Paul’s words of wisdom:

• This is a 24/7 job. If your heart’s not in it, find another line of work.
• Spread the word. Tell people about your passion for your job and for your clients.
• Be disciplined about business growth. Set concrete goals for yourself, and do what it takes to meet those goals.

Take a few moments to think about some of the lessons you’ve learned over the course of your career. Ask your colleagues about the lessons they’ve learned. Chances are there’s a good deal of wisdom that you can put to use in your practice.

Jeff Thorsteinson is the creator of the YouFoundation, an organization that helps investment advisors build world-class practices through innovative concepts, tools, and systems since 1993. With over 3,000 investment advisor marketing projects and business cases behind him, Jeff has become a well respected speaker in the industry and over the last 3 years, delivered his practice-building programs to thousands of financial advisors throughout Canada. Contact strategicadvisor@youfoundation.com or 1 800-223-9332, ext. 1, for more information about YouFoundation, or visit the website at www.youfoundation.com.

(04/17/06)

Jeff Thorsteinson