Top Independent Financial Advisors

TD Ameritrade provided valuable information from top independent financial advisors in an article written in Financial Planning.

The insight provided by these top independent financial advisors provided insight that will help you create a financial advisor business plan that produces results.

These top advisors share best practices that got them ranked in Barron’s Top 100 Independent Financial Advisors.

Keys to Success

David Kudla, CEO of Mainstay Capital Mangement, LLC shares that an affluent target market is one of the biggest keys to success. He adds humor by stating, “Even if it is a dying target market like mine.” His affluent client niche is comprised of automobile executives in Detroit. He also says, “Do not get diluted with a lot of clients from a lot of different walks of life.”

He shares the importance of being selective in your affluent client acquisitions and not work with too many clients. While it is hard to not work with anyone when you start out, as soon as your advisory business mature, focus on a specific niche market. A niche market helps your firm become more efficient and makes it easier to get referrals.

Kudla also adds, “Within a niche, you can become the ‘go-to’ person for media.” When you “Become the expert – it will bring tremendous business building opportunities…” It will also help you to create a successful marketing plan.”

Furthermore, he shares that “Institutionalizing processes is important to grow so others can fill responsibilities where needed.” He adds that it is important to identify your strengths and what you like, so you can delegate tasks to others who are better qualified to complete them.

His final words of wisdom, “Know your unique value proposition.”

Build Trust

Thomas Muldowney, Partner of Savant Capital Management shares, “The clients need to be in a position of trust. Treat your clients and staff well and make yourself trustworthy. That is the way you want to grow the business.”

He educates his affluent clients “To understand that they are not playing the market.” It is important to educate your clients, so they understand that they are purchasing a piece of a company whose responsibility is to provide a return on investment. This helps to create and influence their expectations.

Muldowney shares advice on handling smaller accounts as well, “For smaller asset accounts, we built a feeder program for our wealth management business.”

He also shares “We are moving away from the maverick entrepreneur model. As a mature organization, you need to leverage others expertise, including human resources, compliance, and operations.”

Muldowney also reiterates the importance of specializing, “Avoid being a jack of all trades, master of nothing. Ask yourself, “What can be done to institutionalize the business, so it can live for 100 or 200 years?”

Expansion

Randy Conner, President, Churchill Management Group shares insight on challenges companies face when growing. “Any successful organization will constantly bump into limitations where expansion is needed to grow. When a firm is smaller, it usually is in need of 1¼ or 1½ of a person, so that needs to be figured out.” He continues, “In the beginning you are used to doing everything. When it comes to delegating, you need to let go.”

He also shed light on the importance of your intentions in making your business plan a reality, “The big thing that triggered our growth was really a conscious effort to grow. We made a decision, within the practice, to be an organization with a marketing and sales arm.”

Conner challenges other financial advisors by asking, “Look at yourself and ask, “Can I get good at competing for business?” If you can’t get better at it, you need to partner with someone.” He explains that sometimes advisors need to do what is uncomfortable, so they can grow to their potential.

If you don’t have a plan that is producing your desired results, begin here:

Access the article here: Financial-Planning.com