Getting people to take you seriously and attracting new clients are two of the biggest obstacles new advisers have to overcome, according to those who have been there and done it.
This was the topic of conversation at Money Marketing‘s conference in London yesterday (9 October) where now established advisers and business owners shared their experiences of starting out in the sector.
During the panel discussion, Taylor Beavis – director of Universe Financial Advice recalled a time when, as a 25-year-old who was trying to build a business after becoming directly authorised, he had “no clients and no credibility”.
“One product provider refused to give me agency,” Beavis said. “I wanted to use a model portfolio service at the beginning and was told I would have to commit to a minimum assets under management – I didn’t have a crystal ball so didn’t know if it could reach that. Turns out I did, but I didn’t know that at the time.”
Sheun Oke, founder of Emergenzz, said she too had experienced the difficulty of getting clients to start off with.
“People taking you seriously is definitely a hurdle. People knew me as health and fitness and leadership coach, but when I became an adviser people I thought would be interested weren’t and my heart was broken.
“It made me realise that while these people may see us as friends, as family, they don’t necessarily trust us professionally yet.”
Oke advised the audience to “expand your network, because those who you think might be your first client might not be.”
Edward Backhouse, chartered financial planner at Brooks Financial, agreed – and said one of the best things he did when entering the profession was to set up a young professionals network to allow like-minded individuals to support each other.
This, he said, allowed him to build trusted, close contacts and helped me overcome that barrier [of attracting clients].
Beavis said this was something he struggled with himself: “When I first started I lacked a network around me of people who knew what I didn’t know. If I had a question I had no one to ask.”
Backhouse said he was once competing with another adviser for a client and lost out. When he asked them why they selected his rival, he was told: “We wanted to work with someone who had more grey hairs than you.”
Adding to that, Beavis said when he faced questions about his age and experience from potential clients, his response would be: “Do you want an adviser to see you through retirement, or one who is going to retire with you?”
Starting Out: Helping young people take alternative routes into advice
Attracting clients aside, one of the key issues panellists agreed with was how much work is involved when starting out.
Beavis said: “The number of hats you need to wear setting up – I didn’t appreciate how hard that would be. It’s taken me five years to feel like I’m navigating those things effectively.”
Oke agreed: “You’re not always prepared for the amount of work that goes in to it.” She advised those starting out to “always have a clear path and know where you are going.”
But what else do young advisers need to consider?
take the time to understand how the business ticks – look at regulatory changes coming in and how you can adapt to it,” advised LIBF’s business development and accreditation manager Richard Cooper.
“Always be aware of what the next big thing is and be on the front foot.
“For example, we know we have an aging population – long term care is a burgeoning market – that might be an area to consider. Have a think about where you want career to go, and go for it.
“Learning never stops. I’m a big advocate for lifetime learning. You need to be a sponge.”
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For more practical information on how to get started in financial advice, please visit our Future Financial Adviser community. We tell you how to take the first steps, how to get ahead and what attributes you need to flourish. Even better, we can put you in touch with helpful contacts.
