WHITEPAPER: Growing Your Advisory Business During a Recession



The recent COVID-19 outbreak is wreaking havoc not only on markets, but also on economies worldwide, with many economists predicting a sharp recession as a result. How long the recession will last is still up for debate, but regardless, it will have a dramatic impact on the business of wealth management for years to come.

Despite these dire times, leading advisors report that one of the best times for true organic growth has come during market downturns and economic recessions. While this sounds counter-intuitive, it begins to make sense when looked at from the demand side of professional advice and guidance.

Consider, for example, the growing group of DIY’ers (do it yourselfers) who have felt confident over the last decade due to the historical bull market. After the severe market drop, many are realizing that they may have assumed more risk than they are actually comfortable with. As a result, these investors are now in the market, looking for advice and guidance from a professional.

And for many clients who already work with an advisor, the market downturn and looming recession have left them looking for answers, communication, and education. Those who did not receive those expected levels of service are now aware of the limitations and gaps in their investment experience. Accordingly, their satisfaction levels with their advisor may suffer irreparable damage, sending them back into the market for a different experience from a new advisor.

These two cohorts: scared DIY’ers and dissatisfied advisor-clients, create a tremendous hunting ground for financial-planning based, full-service advisors who are able to articulate their value propositions in times of crisis, provide value-added services, are proactive in communication and education, and most importantly, have the technology and support to pull it all together in a cohesive wealth management experience.

As a result, leading advisors are taking this market break and accompanying recession as an opportunity to go back to their existing clients to ensure retention – a key aspect to net growth – by providing value-added services to enhance client satisfaction during these uncertain times – the exact formula for new referrals. They are also being proactive and visible in the marketplace so that investors searching for a financial advisor can readily find them.

To help advisors make the most of these opportunities, this white paper will:

• Highlight the industry trends driving this movement
• Explore investor values and expectations from advisors in times of uncertainty
• Offer an overview of value-added solutions advisors can provide today
• Provide insight into how advisors can take advantage of the inevitable “money in motion” that will be freed up during this unprecedented time in wealth management