Four Keys to Success in Unpredictable Economic Times
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Between persistently high inflation and ever-present fears of a recession, economists have been cautioning that “the economy faces headwinds.” At a minimum, advisors are grappling with an environment of volatility, uncertainty and unpredictability that has made clients more reluctant to invest in what they’re selling. If the economy does take a big hit, it will be the first significant slump most advisors have experienced in their careers.
Unfortunately, this volatility is being felt directly by many advisors and their practices. A recent study published by Carrier Management found an 8% drop in the number of finance and insurance sector employees – the highest drop across all industries – which means “quiet quitting” has hit our profession as well.
Whether it’s six months or six years away, mild or steep, the risk of a downturn has always been there, and that means the time to recession-proof your business is now. The advisors who are most successful at overcoming recessionary markets are the ones who are continually focused on building trust through deeper relationships with their clients. It’s a mindset and approach that not only sustains them in downtimes but pays dividends in any economic environment.
Let’s look at four keys to building trust through deeper relationships.
Come from a place of service, not selling
On top of the fact that they have their own concerns about the economy, most clients are already resistant to anything that reeks of a hard-edged sales pitch. Instead of approaching client conversations from a place of selling, focus on understanding what clients need. What problems can you eliminate? Where can you add value today?