The Best Thing I Did for My Practice

How do you build a successful practice?

In the inaugural 403(b) Advisor Web Forum on Oct. 10, NTSA Executive Director Chris DeGrassi asked advisors Bruce Smith, Richard Dobson and Jerald Wozniak — all of whom are 2014 NTSA Elite Advisors — for their insights on aspects of how best to go about doing just that.

Set Goals

To build a successful practice, set goals right from the start, Smith advises. “The number one thing I’ve learned to do right from the beginning is to set goals,” he said, adding, “If you don’t have a goal, you’re already headed in the wrong direction.” Not only does his practice set goals every year, they also set a marketing plan to help them reach those goals.

Smith also finds great value in targeting specific prospects, and in finding groups and niches and creating a marketing plan aimed at them and their needs. And don’t fall prey to the notion that one has to land a major client right away in order to be successful. “You don’t have to start big. You can start with small districts,” he commented.

Smith also suggested targeting one’s use of resources as well by tailoring the amount of time one spends with a client in a manner appropriate to that client. “Spend major time with major clients and minor time with minor clients, he advised.

Build a Great Team

Building a great team also is critical, noted Dobson. And he warned of the consequences of not doing so: “When you get someone that’s not a good fit, it’s not only costly and time-consuming, but it can take a lot of the joy out of being an advisor, the very reason why we entered this business — for the freedom it offers, and the financial reward and the satisfaction of helping others. If we get someone in our office that doesn’t quite mesh or isn’t up to the job, it could have profound and substantial effects on your business.” He summed up his reasoning on hiring thus: “Careful selection and diligence at the front end literally can save your business on the other end.”

So how does one go about that? Dobson suggested pre-employment testing, enlisting the services of an employment agency and making sure the position is well-defined. And when one has a identified a promising candidate, he said testing skills, making sure the individual would fit well with the operation and defining a path to success are important.

Dobson also advocated using local colleges and universities as resources; he argued that hiring interns from those institutions and that serving as a member of a an advisory board for a college’s marketing department and/or management department “can go a long way” in building prospects and enlisting assistance in identifying the best and the brightest to join one’s operation.

And remember to tap into the stills that are unique to being an advisor, Dobson said. “We’re in the people business. We read people every day. If a client’s reluctant or confused or maybe has an objection, we’re experts at recognizing and addressing that. We need to use those skills as we interview potential employees.”

Create Lasting Value

Once goals are set and a great team has been assembled, be sure to create lasting value. To do that, Wozniak argued, one should remember that an advisor manages not only money but also assets. “It is incumbent on us to make sure people get the most of assets,” he said.

Wozniak also advised remembering that not all assets are transferable, and maximizing the assets that can be transferred to the next generation.

Wozniak concluded by capturing the essence of what advisors do and why they do it. “It’s about being part of a helping profession,” he said, and added, “There is more to what we do than enrolling someone in a target date fund.”