“Once you’ve figured out how to translate your passion into a business vision, and then tailored the business in a really specific way, you get down to defining your target client base: who you really want to focus on, and, is it really realistic?’’ Littlechild said
One financial advisor of many years told Littlechild that he decided to start over by only representing his favorite clients—professional athletes. After an 18-month transition, his income was back where it had been and, she says, it has increased since. Father-and-son financial planners changed their client list to strictly dentists, then baby boomer dentists and exceeded their former success, she writes.
Other advisors whittled their client list down to only women in transition through widowhood or divorce, or retired business owners. She gives advice on how to tell current clients that you are changing your client list.
An influence on Littlechild’s work, Jon Jones, is co-CEO of Brighton Jones, Seattle. As the business grew, he turned his personal passion for charitable giving into a firm that incorporates and encourages philanthropic giving into legacy planning for his clients.
“Jon Jones reflects a lot of what we saw in our research and interviews,’’ Littlechild said.
But how does an advisor make money during the upheaval of change?
“So much of that depends on where they started. More often than not, it is just a tweak, not an overhaul. Or, it’s focusing your work or changing your team or changing your clients. It doesn’t have to be a transformation. It doesn’t have to take 12 months to make money. Many FAs get through a couple of the steps and find they have a clarity about who they are targeting and then that passion becomes a magnet for clients,’’ Littlechild says.
“Advisors should ask themselves what would be the impact of change and how it would affect income. Should you do it gradually over a two-year period? You should get a clear idea about the size of the market you want to pursue and the economic impact of that and map out a plan that is reasonable,’’ she said.
Littlechild says advisors must clearly define what kind of work they want to do for clients—she calls it “the ideal offer.’’ It can range from comprehensive financial planning and investment management to more specialized areas such as divorce or cross border planning.
“If I looked at the overall driving idea behind the book, I’d say it is the notion that we need to create alignment between personal, client and team engagement. For those who want a business to be growing and fulfilling, they need alignment.’’
Newcomers to financial advising are “largely focused on having to pay a mortgage and feed a family, but if someone is new to the business, I would urge them to think about their passion. It’s harder to do when you are just starting out, but it’s worth the effort, ’’ Littlechild said.