Congratulations on conquering another tough year! Just when we thought it was safe to come out from the pandemic, markets were roiled by from the Russian invasion of Ukraine, oil and gas hikes, workforce changes, and political disruption. And, of course, the S&P 500 was down more than 19%.
But given what we’ve experienced over the past few years, there’s nothing financial advisors cannot do. So as we leave 2022 behind, we hope advisors will ignite a new passion in their work, care for their clients, prioritize their practices, and make 2023 a year to remember.
It’s essential to promote optimism on the part of both you and your clients, and one way to think positively about the new year is to focus on the activities and actions you can control. Why is this process important? Research shows that “perceived control is associated with emotional well-being … improved performance, less pain, and a greater likelihood of making difficult behavior changes.”
Here are a few simple ways you can take control and position yourself for success in 2023.
Advisors work with clients on goal setting and planning all the time, yet many neglect to set goals for themselves, their practice and their staff. How will you be able to track progress if you don’t know your targets? Your professional goals could be to hit a specific AUM target, engage clients and receive more referrals, develop a brand or marketing strategy, or invest in the strengths of your staff.
While you’re going through this exercise, make sure you stop and reflect on your personal goals, too. Perhaps you want to leave work in time to put the kids down for bed, coach a youth sports team, reconnect with old friends or finally give pickleball a try. Whatever goal is important to you, write it down on paper and think about how you can achieve it.
Advisors are busy people and often work long hours. Yet if they don’t keep track of where and how they spend their time, they could find it difficult to attract new clients. If you’re looking to grow your practice, focus on client-facing activities that get you in front of clients and prospects on a repeatable basis, such as meeting with centers of influence, asking for introductions, hosting webinars or events, or being active in the community. To help monitor your progression, give yourself points for the most important events and see if you can maintain a consistent activity level.
When was the last time you gave yourself a pat on the back for a job well done? It’s probably long overdue, and you likely have team members who deserve some appreciation as well. Rather than waiting until the end of a project or initiative to celebrate, look for small milestones you can celebrate throughout the process. This practice helps to keep the positive momentum going and better engages your team.
Everyone thinks they can invest wisely when the stock market soars (remember those “What will you name your island” day-trading ads from years ago?). But when there’s market volatility or negative returns, reality sets in. Investors realize they need help and a financial plan to reach their goals.
Most advisors I speak with tell me that volatile periods, such as the market downturn of 1987–1988, the dot-com crash in 2000 and the recession in 2008–2009, set the stage for tremendous growth in their practices. These advisors communicated effectively, focused on their clients’ needs, and were rewarded with referrals and introductions to others who needed help. The growth came one to two years after the down market, so 2023 could be your silver lining.
It’s important to remember that you can achieve each goal you set by creating simple, attainable steps along the way. As we begin 2023, here’s hoping that you find ways to feel more in control this year, both personally and professionally, and that you enter the new year with a spirit of optimism. Wishing a very Happy New Year to you!
Kristine McManus serves as chief advisor growth officer at Commonwealth Financial Network.
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