Small Business Brief


Become a Powerhouse: 7 Vital Tips for Making Your Investment Firm Flourish

In 2016 alone, more than 7.22 billion investment shares were traded, sold, or purchased each day. And though the market is volatile and changes each hour, one thing is clear: people love making investments. It’s a great way to add to their income.

But every successful investment strategy has a stellar investment firm behind it.

If you’ve started an investment firm, you know that making money is always a priority. But creating a sustainable growth pattern that helps your firm expand isn’t as easy as reading the market.

Here are a few simple tips to help you grow your business so you can get the clients you deserve.

1. Establish Your Goals

Every business needs to know its goals. And those goals will change as your company grows.

Think about what you want to achieve. Do you want to have a certain number of clients by the end of the year? Or is there a certain dollar amount you want to have under management?

Write those goals down and look at your business plan to see what you can do to reach those goals.

Remember to ask your team for suggestions and ideas. They’re just as invested in the growth of your company as you are. They might see something you’re missing that can change the entire trajectory of your firm for the better.

2. Hire Top-Tier Talent

Investment management is a huge people-person business. If your clients don’t feel comfortable with the people they’re working with, they won’t want to stay with your firm. And without good client retention, you can’t grow your company.

Hiring the right people makes all the difference. But that doesn’t mean you should focus on hiring advisors with the most experience. Instead, hire people with the most talent.

Look for a balance between knowledge of the industry, drive, and people skills. Inexperience doesn’t necessarily mean they’ll be bad at the job—we all have to start somewhere.

3. Get Out There and Network

Unfortunately, clients rarely walk through the doors of your firm ready to give you control of their assets. You have to go looking for them. The best way to do this is to start networking.

Get involved in your local chamber of commerce, find a local business association to work with, and reach out to others with your shared interests. Put yourself out there and encourage your team to do the same.

People won’t work with you if they don’t know who you are even if you have an aggressive advertising campaign.

The key to successful networking is cultivating relationships. Every new person you meet is a prospective client, but more importantly, they’re a prospective friend.

Focus on networking as a way to grow your relationships first and your client base second. Once you win your new connections’ friendship, they’ll be more likely to work with your firm.

4. Make an Impact in the Community

The best firms give back to their communities. And the easiest way to do this is to start volunteering for local causes you believe in.

Ask your team for suggestions for local charities, fundraising drives, and events to participate in. Then take action and do it.

When prospective clients see that you’re willing to spend your free time giving back to the community, you’ll win their respect. Further, you’ll have a better chance to network with others while you’re volunteering.

5. Offer Something for Free

The easiest way to bring on new clients is to provide something of value to them for free. Most investment firms just offer free consultations to give the clients a chance to see their strategy and get to know their personalities.

But why not try something a bit different to set yourself apart from your competition? Offer free seminars on wealth management or give presentations on the best penny stocks to buy for investors just getting their feet wet.

Everyone wants to take control of their finances and by sharing your knowledge with a group, you’ll inspire confidence in others. And once they see that you know what you’re talking about, they’ll be more likely to make an appointment with your firm.

Even if they’re not ready to make a commitment immediately, they’ll share your name with their friends and family.

6. Always Put Your Clients First

Investments are lucrative and it’s easy to get caught up in the money side of the business. But focusing on your income at the detriment of your clients is the easiest way to lose their trust.

Instead, approach each investment with your clients best interest in mind instead of focusing on your commission schedule. Always put them first.

When you act in their best interest and make decisions or suggestions that are right for them, you’re more likely to keep their business. Even better, they’re more likely to recommend your services to others.

This may result in slow growth, but the growth patterns are sustainable. And they’ll continue as long as your firm continues to provide top-notch client-centered services.

7. Don’t Expect to Grow Your Investment Firm Overnight

The truth is, growing a firm takes time. You can’t expect it to double in size or production volume overnight.

Be patient and give it the time it needs to grow to the firm you’ve always imagined. If you’re doing everything right, putting your clients first, and doing the job to the best of your ability, growth will happen.

Just don’t get discouraged even if it takes a few years for your firm to grow to the levels you want.

Final Thoughts

Growing an investment firm from the ground up is exciting. And the only limit is your imagination. Use these tips to help you stay on track and make your business as successful as possible.

Looking for more helpful tips on improving your business or growing your profits? Check out our recent posts.