Does it feel like your clients are on an emotional roller coaster whenever the market experiences a significant pullback? As a result, do you find yourself receiving more calls from concerned clients?
Typically, this is a common occurrence for many financial advisors while experiencing market volatility and the longer the market remains uncertain, the more often clients become anxious. When this happens, most financial advisors reactively manage client fears, which can leave them emotionally drained from the constant interruptions and triage tasks.
Stephen Covey, the author of the book The 7 Habits of Highly Effective People, said it best, “If there's one thing that's certain in business, it is uncertainty.” I believe that’s true!
Let’s look at five strategies to manage your business during market volatility and uncertain times.
Strategy #1: Get the Right Mindset
I’ve said it before and I will say it again, “Everything starts between your ears!” In other words, your mindset has an impact on everything that you do. And, as a financial advisor, your clients are looking to you for guidance. That’s why it is so important to have a positive state of mind especially in the midst of what some might believe to be a negative environment.
The way to create and maintain this positivity is to ask yourself a simple but powerful question, “If the market were stable today, what would I have wanted to have done when it was volatile?” Now, go do it!
Strategy #2: Get Educated
One of the best things you can do for yourself and your clients is to become self-educated on the current situation as well as historic patterns. Here is what I mean:
In 2000, I was paralyzed by indecision. The market was up then down, at the end of a Bull Market and the beginning of a Bear Market. At that time I hired my first business coach in hopes of getting direction. He suggested that I research what several large firms where saying about the current situation. Then also, to look at the historic events of how long the average Bear Market lasts and what has happened after each. What I learned was that market volatility and Bear Markets are always followed by Bull Markets. Because of this exercise, I gained the confidence I needed to get busy speaking with clients and prospecting when others were not.
Strategy #3: Get Realistic
Once you educate yourself on the current situation, you need to reinforce your newfound knowledge by making a list of your new belief systems. What this will do is help you have a realistic perspective. And, when it comes to managing your business during market volatility, there are a few things that you need to know:
- You can view market volatility any way you want, as a blessing or a curse.
- Your clients need you more in bad times than in good ones.
- You need to decide what you would have wanted to do when the market stabilizes.
- You need a plan to get yourself there.
The point is, that having a realistic view is better than having an unrealistic view of the market.
Strategy #4: Get Proactive
If you know where you want to be when the market steadies, but you don’t take action while it’s volatile, you are missing out on an opportunity to help ease client concerns. That is why it is so important to design a plan and take action every day. Here is a simple four-step process to be proactive when calling clients:
- Frame the Conversation-Intro, Reason for my call, Three Benefits and Close.
- The 60-Second Market Story-Explain the past, present and future.
- Expect Client Concerns- Be ready to reassure them on what to do.
- Leave them on a Good Note-so that they aren’t concerned if the market continues this way.
The aforementioned process will also help you create better client connections because at the end of the day they will understand they have an advisor who cares!
Strategy #5: Get Results
If you have done all of the previous strategies, you can’t help but get results. But, you might be wondering, “What kind of results?” And, “Is it really worth it?” In fact, you might be thinking, “I’m not getting a lot of calls right now, my clients are fine and I will deal with it when the time comes.” But, that’s not a good strategy.
Here is what happens if you implement these strategies:
- You will create good will with your clients because they will be glad that you called.
- You most likely will get additional assets because some clients will want to buy.
- You will feel positive about the situation because you are proactive.
- You will look back and be glad that you reached out to your client base.
- You will have peace of mind knowing you were proactive in a reactive environment.
Why Managing Your Business During Market Volatility Works
The reason why Managing Your Business during Market Volatility works is because it’s a step wise approach for getting control of your business in an environment that seems uncontrollable! In Advisor Solutions Podcast Episode #136 Managing Your Business during Market Volatility, you will find a much more detailed account of advisors that have applied each strategy and how they found continued success!
