The Biggest Client

Amar Pandit , CFA , CFP

Amar Pandit

A respected entrepreneur with 25+ years of Experience, Amar Pandit is the Founder of several companies that are making a Happy difference in the lives of people. He is currently the Founder of Happyness Factory, a world-class online investment & goal-based financial planning platform through which he aims to help every Indian family save and invest wisely. He is very passionate about spreading financial literacy and is the author of 4 bestselling books (+ 2 more to release in 2020), 8 Sketch Books, Board Game and 700 + columns.

I asked many of you a simple question.

Who is your biggest client?

There were different names that I received.

Try answering this question, chances are a name or two must have popped up in your mind.

What if I told you that your biggest client is your neighbourhood MFDs biggest client too. This person is also the biggest client of a MFD sitting in Ranchi.

Would you believe me?

I don’t think so.

But you must, because the biggest client for most firms is the same – Mrs. or Mr. Stock Market

It is thanks to this client that there is an illusion of growth in the minds of many founders.

Therefore, many have given up on prospecting and real marketing.

The false sense of achievement derived from rising markets can lead you to complacency, causing you to take your foot off the gas of active client acquisition and service enhancement.

Despite the booming times when portfolios swell with the market tide, it’s crucial to remember that this growth is not of our own making, nor is it within our control. If we allow ourselves to believe that Mrs. or Mr. Stock Market’s current generosity is an endless fountain from which we can endlessly drink, we’re not just fooling ourselves; we’re jeopardizing our future.

Prospecting, the art of seeking out new clients and opportunities, is often sidelined when you are happily riding the market’s wave. Why venture out into the uncertain waters of networking, marketing, and relationship-building when the returns seem to accumulate effortlessly? Yet, this is a short-sighted approach.

In essence, your biggest client should not be the impersonal forces of the stock market, but rather the real people who trust you with their financial futures. By shifting the focus from Mrs. or Mr. Stock Market to Mrs. and Mr. Client, you place value on what truly matters: the trust, goals, and well-being of those you serve.

By neglecting the pursuit of growth, we do a disservice to ourselves and the very people we aim to serve (or the people who need us).

Here’s why and how we must shift this mindset:

Reignite the Prospecting Engine: Constantly engaging with new prospects not only ensures the sustainability of our business but also keeps us sharp, knowledgeable, and in tune with the evolving financial landscape.

Focus on Holistic Value: Our role should never be to merely ride the waves of market success but to provide holistic value that encompasses all economic climates. This means sharpening our skills in managing behaviour, helping people align the use of their money with what’s truly important to them, and personalized financial life management.

Strengthen Client Relationships: In prosperous times, it’s easy for clients to be content with their investments, but it’s the lean times that truly test your-client bond. Strengthen these relationships with consistent communication and reassurance that transcends market performance.

Reassert Your Value: Our greatest asset is not the ability to predict market movements but to provide guidance tailored to individual needs and goals. Reinforcing the value of this is crucial in a world swayed by the fickleness of markets.

In conclusion, Mrs. or Mr. Stock Market can lead us to a dangerous illusion – a false sense of security and growth. This distracts us from the critical tasks of prospecting and genuinely serving our clients. As financial professionals, we must look beyond market metrics and focus on the fundamental aspects of our role: providing unwavering support, insightful guidance, and enduring value to our clients, in all market conditions. This is the true path to sustainable growth and professional fulfilment.