Road To Independence

It’s been five months now since my journey began and I am finding the transition from employee to business owner requires a lot of time and energy. Last week I wrote about my efforts to develop a strategic plan. This week I continued working on the plan and started some specific projects, which, once created, can easily be replicated.

I have been working to develop tools, templates, process, and procedures that will provide scalability. This “scalability” is a critical component of a business’s efficiency. The tools that we sometimes take for granted as an employee have to be created or purchased when you are an independent. A risk tolerance questionnaire is one of these basic tools.
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Remember the commercial with the guy who slaps his forehead and says, “I could’ve had a V8!”? I felt like that guy recently, but instead of a V8, I was reminded of something so fundamental and important that without it, success would be more difficult to achieve. Instead of just coming into the office every day and going about my work, I first need to make sure I am doing exactly what I need to be doing. Let me explain.
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Do what, you ask? Why, financial planning of course. Now I’m not talking about the off-the-shelf variety where you spend a little bit of time gathering data from the client and produce a “cookie cutter” analysis. I’m referring to the type of highly customized plan the wealthy are looking for, which begs another question. Who needs this type of service?

In the strictest sense I would say everyone. However, the question each of us has to answer is this: “Which segment of the marketplace do we want to focus on?” Another question of relevance: “What is our perception of planning?” If it’s merely a way to sell things, then it will likely come across that way to the client. If you think of it as a “loss leader,” then are you really a planner?

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People express their trust in you, or lack thereof, in different ways. This week brought with it some interesting and encouraging developments. I had a meeting with a client who informed me that he would call me or his CPA whenever faced with a financial decision. He didn’t say the words, “I trust you” but his intent was clear. I called another client after the 387 point drop in the DJIA to see how he was doing. This particular client is approaching retirement and I expected him to be a little concerned. To my surprise he wasn’t and in fact said, “I trust you completely. Do whatever you think is best.” Still another client said, “I trust you 100%.” These are the things that inspire me and are the reasons I do what I do. The common thread between each of these clients is that they didn’t buy a portfolio or a financial plan, they bought advice.
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Two things seem clear to me. First, there are a limited number of ways people are motivated and second, individuals are motivated differently. Recently, I heard a speaker say that to succeed, you not only need initial motivation but ongoing motivation to enable you to persevere. Without the subsequent motivation, your initial enthusiasm will wane and you’ll eventually give up and quit. To me, one of the most motivating things is when a client offers a sincere compliment. This will naturally occur when the client’s satisfaction reaches a certain level. When they let you know how important you are to them it penetrates deep into the psyche. This in turn, confirms to us the real reason we are in the business (hopefully) and provides the ongoing motivation we require to persevere.

It’s like a big circle. The more I help clients, the more they appreciate me, and the more they appreciate me, the more motivated I am to help clients, and so on.

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