Probably a lot sooner than you think.
About 15 years ago, I saw a comedian named Jack
Cohen. He had just celebrated his 35th birthday and was talking about
how excited he was to be 35, because he no longer said some of the
stupid things he used to say just five short years ago when he was 30.
Of course, when he was 30, he felt the same way. He
remembered thinking that it was great to be 30 because he no longer
said some of the stupid things he used to say just five short years
before when he was 25. But, he continued, if there was ever a time when
he thought he knew it all, it was when he was 25. He remembered turning
25 and thinking, "I'm a quarter of a century old. Thank goodness I
don't say some of the stupid things I used to say just five short years
ago when I was 20." The punch line was, "I think I finally figured out
why old people don't talk much."
There's a lot of truth to that joke, especially in
the financial services industry. Too many advisors reach an age where
they find themselves saying, "When will my career be at its peak? I
thought I'd have it together by now."
At what point in your career should you have it all
together? The answer is probably earlier than you think. In our
industry, prospecting and marketing should be temporary activities.
During your first three to five years in the business, you prospect and
market to build your clientele, then you should spend the rest of your
career taking care of your clients. When client acquisition is no
longer your priority, you really only need about three days a week to
take care of your clients and run your staff. If you're lucky and you
get a great mentor, it takes about three to five years to build that
kind of a business.
There are basically three ways to build a successful
business. You can build it right the first time; you can build a dumb
business and then rebuild it into a smart business; or you can build a
dumb business and live with it forever. The choice is yours. You can
fall into the first category and build a smart business right off the
bat, or you can fall into the second category and build your business
later on. Sadly, most advisors fall into the third category and never
build a smart business at all.
There are three components of a smart business: a
smoothly operating client acquisition system, a well-defined client
deliverables system and a staff that really works. At what point should
you have a business where you have all the clients you need, they're
thrilled with your service, your staff works smoothly and you're
generating all the money you want (roughly a half million to two
million dollars of revenue)? For most people reading this article, the
answer would be, "Well, certainly by now!" or "Maybe within a year or
two." So the next question is, are you on the right path? Are you
taking the steps today that will bring you those results within a year
or two?
The cynic and the skeptic will ask, "But aren't you
always tweaking, improving and fine tuning your business?" Yes, of
course you are. But there's a big difference between tweaking a
smoothly running business and rebuilding a dumb one.
Ten years ago, I sat down to coach a financial
advisor. In addition to serving his clients, he was also coaching other
advisors on how to be successful. At age 50, he had four kids (two
still in high school and two in college), no savings and virtually zero
net worth. He planned to take care of his family and use his earnings
to pay for his kids' education. When they were all out of college, he
would start saving for his retirement. I asked him what advice he would
give to a client who decided not to save or invest money until after
the kids were out of school. He kind of backpedaled and said, "Well,
that's not the best strategy."
Sadly, this happens a lot. I coach advisors who are
typically between 35 and 50 years old. In that range, they start to
think, "I'm running out of time. I started this business ten years ago
and it really ought to be a lot better (more successful, more time off,
less hours working, more referrals, etc). I've got to do something
about it, or ten years from now it's going to be the same." No one
expects to be at the same place at age 40 or 50 that they were at age
30. Most people think that by the time they hit 40 or 50, they'll
figure it out, fix it, and make it work. Well, that won't happen by
itself. But wait-there's good news.
Whether you're 30, 40, 50 or older, it's not too
late. You can still shift gears and build a smart business. As I said
earlier in this article, it takes three to five years to build a
successful business, whether you're just starting out or you're fixing
an existing business. Don't wait another ten years to look back and
say, "Where did that time go? I wish I had it to do over." If you don't
want to have this conversation with yourself when you're 60 or 70, the
time to start is now. Find a business-building program, whether it's
mine or anyone else's, and follow it until you achieve the results you
truly want (professionally as well as personally).
©2006 by Bill Bachrach, Bachrach
& Associates Inc. All rights reserved. Bill Bachrach is the author
of four industry-specific books, including his newest book, It's All
About Them: How Trusted Advisors Listen for Success. For information
about Bill's speaking services, The Trusted Advisor Coach program,
3-Day Values-Based Selling Academy or to order his books and learning
resources, contact Bachrach & Associates Inc. at (800) 347-3707 or
visit www.bachrachvbs.com.