Change is important for any organization. Without change, businesses would likely lose their competitive edge and fail to meet the needs of what most hope to be a growing base of loyal customers. Yet, most financial advisors are resistant or hesitant to make changes in their practice. The preconceived notion there will be resistance from clients is one of the major reasons change does not happen. When financial advisors allow preconceived notions to rule their decision making, they become their own worst enemy.
Corporations have had to deal with change on an increasingly rapid scale. In the 1990s, change came at an exponentially faster rate than previously, due to increased competition in a global economy, expanding markets, new ways of doing business (such as e-commerce) and the omnipresent task of keeping up with the latest technology.
Today, this hasn’t changed. The pace of technology continues to increase at rapid speeds and businesses are forced to continuously revise (or devise) corporate missions and goals, management practices, and day-to-day business functions.
Growth is essential to success. Firms which do not grow fall behind. Growing firms attract advisors and clients and have a more positive culture. Financial advisors have to adapt because change is constant. Change has accelerated since technology started to play a more prominent role in business. You can either change, or you risk failure.
Are you thinking about moving to fees, but aren’t sure? Or are you thinking about rebranding, but not sure how receptive your clients will be? It is important to try things which might or might not work and then improvise solutions along the way.
If you’ve been playing it safe with your business, it may be time to take a chance on risk. Calculated risks, taken within your tolerance level, can help you make wise decisions, while keeping your business energized and moving forward.
Life coach Stacia Pierce says taking risks opens you up to new challenges and opportunities, and empowers you to establish new limits in your mind. “We all have boundaries or a comfort zone where we’d like to stay and many have misconstrued visions of what we think we deserve or are capable of accomplishing. When you take risks, you can eradicate this thinking, establish new boundaries, improve your outlook on life and your ability to achieve on high levels,” she said.
Consider these moves when you are ready to take a risk:
o Identify your goals and brainstorm potential opportunities. For instance, you might want to make your business more efficient, grow your customer base, or find ways to better serve your existing customers. Looking more broadly, there may be new trends to capitalize on or industry gaps could become your business strength.
o Evaluate the risk level of each opportunity. Consider the cost and benefits to your business, its potential for success, and the worst possible consequences, should your endeavor fail. Consult with your trusted advisors for their objective perspectives.
o Know how much you can afford to lose and work within this limit. Start small if you need to. Small steps yielding success can help build your tolerance for business risk, giving you the confidence to take a bigger step next time. If the risk doesn’t pay off, you’ll be able to recover quickly and try something else.
o Create a detailed plan of execution. Implement your plan, then take a step back, and give it time to unfold in the real world.
o Review, adjust and change as needed. Whatever the outcome, use your findings to inform future decisions and the next moves you will undertake.
o Don’t be afraid to fail. Trial and error is an essential part of growing your business. If you falter, pick yourself up, learn from your mistakes and continue moving forward.
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