‘Wealth Management’ is a term that can get thrown around a lot, but most people, even high earning professionals, struggle to define what wealth management actually is.
But since 2007, the independent wealth management sector is the only financial sector to have continuously seen growth. So if you’re thinking about start your own wealth-management start-up, here’s some key things you’ll need to know to succeed:
1: Go to the mountain, because it isn’t coming to you
Make like you’re on the Apprentice, get that sales pitch down and the website up. Having some business cards in your pocket and a shiny suit isn’t going to cut it. Even if you’re starting your new venture off on a wing and a prayer, you still need to look and act the part. Part of that is being able to convince prospective clients you know what you’re talking about. Your website is the first thing new clients will look at when you stop talking. Make sure it looks good.
2. Dream big, act small: Don’t promise clients the moon on a stick.
Why not promise big? Because, a) they probably won’t believe you, and b) most people didn’t become wealthy by being gullible idiots. Don’t make digital promises your analogue backside can’t cash. A key part of successful wealth management is ensuring your clients keep on being wealthy, so make sure you take the long term view. Thirty years or more is not an uncommon time frame for wealth management plans. Remember that.
3. Be knowledgeable
Believe it or not, you don’t have to have 28 letters of financial accreditation after your name to be a hit in the Wealth Management game. A few probably wouldn’t hurt, but it isn’t necessarily a necessity. Fisher Investments UK, as just one example, is fairly adamant about that point on their recruitment website stating: ‘No previous experience in financial services is required….’ So there you go.
4. You can’t buy trust you have to earn it, so earn it!
Be trustworthy: You’re not Gordon Gekko. So work on your personal and professional integrity. It doesn’t matter how slick an operator you are, if clients don’t trust you. Would you give someone your bank account details and the keys to the vault if you didn’t trust them as far as you could throw them?
5. Understand your clients
I’m not saying you should engage in group therapy, but understand what’s important to them and why. When you know that, you’ll be far more likely to keep your clients with your firm and give them the best advice for them, even if it hurts you financially in the short term.
6. Offer perspective
Part of having integrity and understanding your clients needs is the ability to be a steady hand, especially for those clients who might not necessarily understand the finance game. Keeping your clients from selling everything because of some sort of market ripple in China, is all about managing expectations. Seeing edgy clients safely through one perceived crisis calmly will build a deeper and longer lasting relationship.
7. Give them your phone number
Wealth Management clients need to know that you’ll be there within a few minutes, even if that few minutes is on a Tuesday night at 11pm. You may be looking after a million of one person’s money, and only 100,000 of someone else’s, but treating both equally, and being there for them is just part of the job.
8. Be upfront with your numbers
You know what potential and existing clients like? Hidden charges. They love them, and they love receiving invoices for stuff they had no idea they were going to be charged for.
Be upfront with your charges and your costs. If you have to, give your clients a rate card, and make sure your clients know what your services are going to cost.
Follow these rules, and you might be off to a good start!