As I approach the end of my third year as an independent RIA, I am very glad to have made the decision to leave the security and culture of the banking and wirehouse world. When I reflect back to my first year of independence, there were many bumps in the road. Establishing an infrastructure, settin my pricing, and clearly defining my offerings were only a few of the items on my plate during that time. I also had to bring in new clients while balancing on a financial tightrope.
Yes, there were a lot of decisions to make that first year. After the end of my second year things were better, but my income was still not adequate. Today, current income is not only sufficient to meet our business and personal expenses, but there is also a small surplus. One of the next items on the agenda is to start a health savings plan. Then, in a year or two, I hope to have a full time assistant and a retirement plan. You have to crawl before you walk and walk before you run. I think I'm walking pretty well now. However, to accomplish this I will need a few more clients.
Fortunately, over the past few weeks, I've received three new referrals. Why? Partly because I've asked for them. As I go through the client review process, I am incorporating the question, "Do you know of anyone who could use the services I provide?" If they do, I give them some business cards and the rest is up to them. I have also created a tab in ACT! on which I keep a record of the referrals I receive. The tab includes the name of the referral, the date of the referral, the result of the referral, and whether I have sent a thank-you to the referring party.
Referrals are very important, especially if you don't want to spend a lot of time with seminars or cold calling. Generating business from referrals allows you to spend more time serving clients and not 'shaking the trees' for new ones. All of my clients have come from referrals or people I have met over the years. Moreover, referrals are the best source for new clients. If your focus is on satisfying current clients you can be assured that your pipeline will always remain full.
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