We all know that nobody is perfect. We’re only human, and humans make mistakes. But when you work as a financial advisor, you have to realize the immense trust that your clients are placing in you, often a perfect stranger. That means that they will be sensitive to certain mistakes that will make their trust waver and make them think twice about working with you to achieve their financial goals. Here are some of the top mistakes all financial advisors should avoid, both at your initial meeting with clients or prospective clients and throughout the duration of your relationship with your clients. By avoiding these, you can improve your professional reputation, grow your practice, and deepen your relationships with your clients so that they stick with you throughout all the different phases of their lives.
Mistake: Getting straight to business
There is a lot of important material to cover in a limited period of time, but your clients want to feel like you see them as people, not as numbers. That means you need to engage in some earnest, friendly conversation with them and take interest in their lives. It will show that you are a warm and approachable person whom they will feel free to come to with any problems that may arise.
Mistake: Being too chatty
Some small talk is necessary to build a good relationship with your clients, but you must carefully balance that with all of the important points you need to cover in your meeting. If you run out of time before covering some important issues regarding your clients’ finances, it will look very unprofessional and reflect poorly on your ability to manage time.
Mistake: Not putting your clients’ needs first
If you are a fiduciary, this goes without saying. But if you’re working on commission, it can be really tempting to try and sell your client on every product under the sun in order to increase your own bottom line. Resist the temptation. Customers can sense when they’re being sold something that they don’t actually need. You are a respectable financial professional, not a used car salesman. Your clients will notice and appreciate it when you consistently put their best interests ahead of your own, and will often express their gratitude in the form of word of mouth recommendations to friends and family.
Mistake: Talking too much
The only way you can put your client’s interests ahead of your own is if you know and understand what their needs are. That means you need to allocate time to stop talking and listen to what they have to say. People seek out the services of financial advisors for a myriad of reasons, and it’s up to you to know that Mr. and Mrs. Jones have a daughter who just started high school and might want to consider a college savings plan, or the details of Mrs. Smith’s family as it relates to her estate planning. Make sure your customers feel comfortable asking questions and show them that you are interested in what they have to say. If they don’t feel heard, or if they don’t feel comfortable raising their concerns to you, they won’t feel comfortable letting you manage their life savings.
Mistake: Appearing unorganized
You might not actually be unorganized, but if you look like you are, that’s all that matters. Taking care in your personal appearance, as well as the state of your desk and office, will reflect well on you as a professional. It signals to your clients that you are responsible, conscientious and organized enough to manage their personal finances in a way that helps them achieve the future they are dreaming of.
