Independence is a great motivator for solopreneur financial advisors, but being all alone is exhausting, frustrating and often invites imposter syndrome. Financial advisors play a crucial role in helping families navigate investments and plan for the successful funding of their family obligations. However, for financial advisors who are solopreneurs- running their practice without the support of a large firm or a team can feel like swimming upstream against a strong current.
What is the single biggest challenge these folks face? Sales management. In addition to being experts in financial planning, asset allocation, estate planning, and distribution planning in retirement, these advisors have to master the art (and science) of bringing in new clients. I have been a coach to financial advisor solopreneurs for well over 20 years and whenever I ask what their client acquisition strategy looks like, I almost always get “I accept referrals.” Unfortunately, the number of referrals received each year and the quality of those referrals can never be predicted with any degree of accuracy. There needs to be more. However, this dual role often leads to feelings of frustration, burnout, and even self-doubt.
The Pain of Sales Management
Many solopreneur financial advisors spend an incredible amount of time and effort becoming certified in their craft through programs like the CFP, CDFA, RICP, or the CEPA to give them that competitive edge when fighting for new clients. However, the art and science of sales can feel so foreign to them that the whole process just becomes daunting. Advisors often share sentiments like:
“I feel like I’m spinning my wheels trying to bring in new clients, but I’m not seeing the results I need.”
“It’s hard balancing my time between managing my existing clients and prospecting for new ones.”
Sales strategies can be overwhelming. Advisor are bombarded with advice on networking, digital marketing, and even the old steak house seminar that leaves them wondering what will work. Many feel they lack the skills or the confidence necessary to execute any of these strategies effectively. Worse yet, the fear of appearing “salesy” or pushy often hold them back from fully engaging with a prospect and potentially landing them in “friend zone.”
Internal Professional Frustrations
Too many solopreneur advisors avoid tackling this challenge, and instead chalk off their lack of new business to a slow period in receiving referrals. This denial regarding their sales pipeline has traumatic effects on their growth plans. I see a lot of advisors pounding their chest about the growth of their assets under management over the last two years. However, we can’t ignore how easy it has been with +25% annual returns in the stock market! When the tide goes out, will the emperor be wearing clothes?
“Tracking sales performance is a nightmare. I don’t have the right tools in place or the right processes.”
“It’s frustrating to see competitors consistently outpacing me when I know my services are just as good, if not better.”
For solopreneurs managing a small team, or outsourcing one function of the sales funnel, additional stress comes from underperformance or misaligned efforts. The sales training I have provided over the years (the Wisdom program) has certainly improved the efforts of many financial advisors and, ultimately, the outcomes for their clients, but there’s no doubt having a sales manager there to help prevent opportunities from slipping through the cracks and to be held accountable to their many functions in the sales funnel are important for long-term success. The beautiful thing about fractional CROs (Chief Revenue Officers) is that their cost to the advisor is about the same a registered assistant!
The Emotional Toll of Managing Sales by Yourself
The challenges of sales management often extend beyond professional frustrations, impacting advisors on a deeply personal level. About ten years ago I accompanied an advisor to a wine tasting event to help him get comfortable talking to strangers. As I expected, he was initially terrified to speak to anyone at our table, so I broke the ice by asking what each person’s favorite part of their job was. This gave my advisor friend the opportunity to engage in “verbal tennis” (an important lesson in the Wisdom program) and he successfully warmed up and entertained the table for the rest of the night. These were high quality prospects who now had warm feelings for this advisor. When I followed up a week later I asked, “How many of those folks are on your calendar?” He got cold feet and never followed up. This is where having an outsourced sales manager can make a huge difference! The consequences of trying to do it all on your own are too big.
“I feel like I’m letting my family down because I’m not earning as much as I could be.”
“The stress of inconsistent revenue is starting to affect my personal life- I can’t stop thinking about work.”
Networking events, often considered a solution, can exacerbate social anxiety. Solopreneur advisors often feel “imposter syndrome” in these situations. Over time, this constant emotional strain can lead to burnout.
Running a solo financial advisory practice means wearing many hats: investment advisor, financial planner, psychologist, strategic partner, marketing expert and salesperson. This combination is often overwhelming and leaves them with no energy left for professional growth.
“I barely have time to eat lunch, let alone focus on developing a better sales strategy.”
“I’m so drained at the end of the day that I don’t have the energy to focus on the big picture.”
How Can Solopreneur Financial Advisors Fulfill Their Purpose?
Outsourcing sales management to a professional makes a lot of sense. In addition to having a fresh pair of eyes on all stages of the sales funnel, oversight of lead generation and lead scoring, a keen sense of how to integrate and manage technology, and the determination to exceed KPIs (key performance indicators), a fractional CRO fulfills the functions that are often ignored in favor of unpredictable streams of client referrals.
“I wish I had someone to guide me- a proven system I can trust to bring in more clients without feeling overwhelmed.”
By focusing on their core strengths and finding help from a fractional CRO, the solopreneur advisor can deliver amazing client experiences without dealing with chaos of wearing so many hats.
