Financial advisors must increase their capacity to work with more clients. However, while the demand for financial advisory services continues to grow, the supply of advisors delivering those services is not keeping pace.
So how can advisors expand their ability to serve more clients? Here are several strategies to consider:
1. Leverage technology. Technology is an incredibly powerful tool when it comes to generating efficiencies and capacity. The key, however, is applying technology to the areas of your business that need it most and namely, take up the most time. For many advisors, one of those areas is financial planning. Platforms such as eMoney, MoneyGuide and RightCapital can help streamline and focus your financial planning capabilities in a way that sets you up to scale, all the while tailoring your techniques to your individual clients. These tools also enhance client involvement and accountability throughout the financial planning process.
Another area where technology can create leverage is for client engagement and communications. Tools like Zoom, Redtail Speak and Calendly are effective at providing easier access to engage with clients on their terms. They also demonstrate that you understand the value of their team as well as your own.
2. Outsource money management. Like financial planning, money management and investing takes time. Whether you are building financial models, researching and picking securities or simply monitoring the markets, this collective effort can be immensely time-intensive. According to Fidelity, financial advisors on average dedicate 44% of their time to investment management but would prefer to cut this down to just 23%.
Fortunately, money management does not have to be a resource drain. There are several other options available that will enable you to deliver strong investment services in a time-efficient manner, such as outsourcing your money management capabilities to an investment strategist or utilizing model portfolios. This will not only free you up for other things (ideally, more client and prospect engagement), but it will also enable you to provide better, more customized services. For example, there is a growing demand for environmental, social and governance (ESG) investments, but oftentimes, advisors do not have the time or expertise to conduct proper ESG screens. In this instance—and several others—outsourced money management can help.
3. Recruit younger advisors. It’s no secret: our industry has historically had a tough time attracting young talent. Luckily, there are several tactics you can employ to recruit your firm’s next generation of advisors. For instance, partner with local colleges that offer financial planning programs. Connect with the CFP Board and ensure you are posting jobs on their platforms. Work with your industry peers and partners to identify different programs and organizations to take part in. Hire interns into your offices for summer or even during the school year. Provide them with direct experience to this noble profession. Interns are a wonderful pipeline of future talent and provide a low-risk way for you to “try before you buy.” Whatever you do, be purposeful and make sure recruiting younger talent is a key part of your expansion strategy.
4. Use a proper CRM. Installing the right Customer Relationship Management (CRM) software is one of the most important things you can do for your business. Whether it’s Redtail, Wealthbox, Salesforce or something else, these programs allow you to create streamlined workflows, onboard new clients as well as keep track of current clients, from scheduling regular meetings to reaching out for personal milestones. Bottom line, the right CRM will help establish a clear playbook for your business and ensure you are spending your time efficiently and effectively.
5. Engage with a wealth management platform that can enable your success. Your business’s success requires more than someone simply managing operations or processing transactions. You need a partner dedicated to your business throughout its lifecycle. Make sure your broker-dealer or custodian can deliver the service and support that help strengthen every facet of your business.
If you are eager to take on more clients but can’t find the capacity to do so, get started employing these strategies today.
Stephen Langlois is the president of Kestra Financial, a company that provides a leading independent wealth management platform that empowers sophisticated, independent financial professionals, including traditional and hybrid RIAs, to prosper, grow and maximize firm value.