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Making a deal and finding the synergies to strengthen the relationship between two companies is truly an art in my book. It’s what led me to pursue a career in the finance industry, specifically in the realm of investment banking. However, I soon realized it was only a dream, when I accepted my first job as a retail financial advisor with Smith Barney in New York City.
I spent years working there, with a goal of eventually opening my own firm and building it from the ground up. I was actually able to achieve this goal, but it wasn’t in finance. In fact, my wife and I started a company in the golf industry. To my surprise, the skills I’d developed in this business venture would lead me right back to the goal I’d set in New York City: owning my own firm in finance.
While co-owning and operating our golf business, I made it a priority to keep myself involved in the financial sector, by accepting a position as president for Virtus Private Wealth in Austin, Texas. Little did I know, this role would become a pivotal moment in my career.
Two short years later, my partner and I bought the company and renamed it Waterloo Capital. We had an idea of where wealth management was heading. We used that theory as a motive to build a company that would reflect that trend. Now, a decade later, my partner and I have grown the business massively, and we’re still growing.
Over the course of my career, I’ve often been asked what it takes to find success in the ever-changing world of finance. Since the start of Waterloo Capital, my main focus has been to stay ahead of industry trends, and I do it by relying on my colleagues in the industry.
Understanding how the industry has transformed is also key to finding success and could be the difference between a failing firm and a thriving one. We’ve moved from a broker-dealer dominated industry to the rise of the Registered Investment Advisor, and now we’re seeing massive aggregators reinventing the broker-dealer model as RIAs. As a result, I believe those firms that have chosen to accept private equity money will look back at that decision and, perhaps, second-guess their choice.
In order to stay relevant and adapt to the evolutions in finance, I’ve found that peer-to-peer discussions about where the industry is now, what’s changing, and where it’s headed have been the most beneficial to me. By applying this to my practice, I’ve been able to create a team of passionate and engaged experts who have the freedom to challenge the status quo. I always say, we don’t have a monopoly on good ideas, so let’s find out what others are doing and come up with a way to do it better.
Following this motto has helped us keep our competitive edge, but that’s not all it takes to build clientele. In my experience, there are three skills you need to have to create a successful career in finance: an understanding of all investments; the ability to analyze complex topics and communicate them effectively; and the capability to recognize your client’s learning style and adapt to ensure you’re advising them in a way that suits them best. In addition, resilience, fortitude, self-confidence and understanding how to work with and serve others is crucial. We’re told ‘no’ a lot in this industry, and you must be able to form an opinion, back it up with supporting information, and — at times — be able to tell clients what they don’t want to hear.
For those breaking into the financial industry, it’s an exciting time. The opportunity to achieve success and make an impact on an industry that could help people for years to come is likely the goal, but it’s important to understand that it doesn’t come freely.
Be prepared to work long hours and meet all the demands the job requires. The foundation of financial services is prospecting for new clients, and while it can be an arduous process, it’s essential. It’s important to remember that success isn’t owned — it’s rented. And you must work for it every day.
John Chatmas is the CEO of Waterloo Capital — a thriving investment advisory firm in Austin, Texas. He attributes much of the success the company has experienced to the culture that he has been intentionally cultivating for approximately the last 10 years. John’s goal is to empower accomplished entrepreneurs, executives, philanthropists, and other outstanding individuals who shape our world to not only achieve their financial goals but to exceed their dreams for themselves and those they love.
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Advisor Perspectives welcomes guest contributions. The views presented here do not necessarily represent those of Advisor Perspectives.
