Embracing the Entrepreneur Within
Being a successful investment advisor isn’t just about making good investment decisions. It’s about being a successful entrepreneur and making good business decisions. This means you need to have the same mindset as any other entrepreneur.
What exactly is that mindset? Arash Asli, co-founder and CEO of Yocale.com addressed this stating, “Much of the entrepreneurial mindset is to simply do. They have discipline, which allows them to continually reach their goals. But there is a secondary component to this “doing.” The truest entrepreneurial mindset is about providing value. Entrepreneurs are on a quest to help the customer in some way and to continue to make their service better and better. They identify problems and solve them.”
“Doing,” by effectively offering the services your clients need and want, requires investment. Entrepreneurs invest in their businesses. They invest in their communities. They aren’t frivolous with their money—the dot-com days of marble fountains in the lobby are long over—but they aren’t cheap.
After all, you need to spend money to make money. I spend several hundred thousand dollars per year on growing my business. For an advisor to put this much capital into the business often means cutting back elsewhere. It might mean living somewhat frugally until you are well established. For example, someone who is focused on growing a practice would forego buying a big home or expensive car with that first big check and would instead plow that income back into the company. This is exactly what I did early in my career. Instead of purchasing a new car, I hired an assistant.
And even once established, living below one’s means in order to invest more in the business pays massive dividends in the end. Delayed gratification works if you block and tackle well every day. Thinking like an entrepreneur also means always moving forward— always finding new ways to obtain clients, attract top-level talent, and understand the bottom line. Advisors who are independent and own their company probably already understand this. But even those who work for a larger bank or brokerage firm will find it advantageous to understand margins and bottom lines so they can communicate effectively with their firm when they need more resources.
Entrepreneurs continually keep their eye on the vision and mission of their business. Don’t lose sight of what you hope to accomplish; recognize the need to treat your practice as a growing, thriving business that requires an investment of time and money. Learn more by visiting, saltiano.com.