Strategies and Tips for Financial Advisors
Bring the experience of calm success to you and your clients.
While “black swan” market events such as the recent banking system failures and potential impact may cause anxiety and nervousness, it also creates the perfect atmosphere for advisors to switch into proactive mode and bring an experience of calm success to your firm and your clients.
A “black swan” event in financial markets refers to an unexpected event that significantly impacts the market. Author Nassim Nicholas popularized the term in his book “The Black Swan: The Impact of the Highly Improbable.” These events are deemed highly improbable but have a massive impact on the markets when they do occur. With the recent bank failures and concerns around the ongoing stability of the market, we are amid such an event.
The very nature of black swan events makes it difficult to predict or prepare for them entirely. However, there are things financial advisors can do to bring calm success to themselves and their clients during turbulent waters.
Many financial advisors may face operational challenges and need help managing the volume. Outsourcing business operations to a reliable third-party provider like FocusPoint Solutions can help ensure critical business functions operate smoothly, minimizing the event’s impact on your business. Here are some strategies and tips to help you manage your business operations more effectively during market turbulence.
- Outsource critical business functions: Identify the essential business functions that are most at risk and consider outsourcing them. Outsourcing services such as IT, compliance, investment management, and back/middle-office operations can bring specialized experience and knowledge not available in-house. Our team is your team, and having a compliance specialist covering your back can keep you up-to-date with regulatory changes and help ensure that your firm remains compliant during a rapidly changing landscape.
- Use cloud-based technology: Your business operations can be accessed from anywhere with an internet connection when you utilize cloud-based technology. When market conditions change rapidly, you need the flexibility to scale your business operations up or down quickly. You can maintain business continuity even if you or your employees cannot work from your office.
- Be Proactive: Proactively outsourcing back/middle-office needs can reduce overhead costs by eliminating the need for in-house staff and infrastructure. You can spend more time meeting your client’s needs and focusing on strategic tasks, which can be especially beneficial during a black swan event when revenue may be affected.
Communication and Marketing Strategies
The best type of communication and marketing message for financial advisors during market instability is empathetic, informative, and reassuring. Here are some tips for crafting a thoughtful message:
- Be empathetic: Acknowledge the event’s impact on your clients and prospects. Express sympathy for their concerns and the challenges they may be facing.
- Be informative: Provide your clients and prospects with accurate and up-to-date information about the event, its impact on the financial markets, and the steps taken to address the situation. Be transparent about the potential risks and uncertainties.
- Be reassuring: Emphasize the steps you are taking to protect your clients’ investments and provide guidance on how they can navigate the situation. Remind them why it is important to have a long-term financial plan and stick to it, even during times of volatility.
- Be proactive: Offer to schedule a call or meeting to discuss the situation further and answer any questions your clients or prospects may have. It is a great time to share any relevant resources or tools to help them stay informed and make informed financial decisions.
Remember that your clients and prospects may feel anxious and uncertain during times of market upheaval. By taking a proactive stance, considering your outsourcing options, and communicating with thoughtful and empathetic messages, you can help build trust and strengthen your relationship with them.