The Age of The Virtual Financial Advisor and COVID-19
As we wrestle with a new way of life or try our best to adapt, one thing we have already learned from the COVID-19 pandemic is that many industries can operate remotely.
That’s the thing, with all that is happening in the world, time stands still for no one, and we now have to look at alternative ways to carry on with life, to make a living, but most of all to do everything we can to get through this together.
I like to think of myself as a bit of a pioneer as I embraced operating virtually some time ago already, and I can confidently say that running a virtual financial practice is a viable option in these trying times.
Up until a few years ago, financial planning was mostly based around face-to-face meetings, sitting across from clients, and providing them with financial planning and investment advice.
From client acquisition to client retention, building relationships was done in-person. Now, as we find ourselves amidst a global pandemic, this way of work is no longer possible.
Even when COVID-19 is one day behind us, meeting face-to-face will still seem like an unnecessary aspect of our role in people’s lives. Why would we need to? The rise of technology is creating a new service model for financial planning – the virtual financial advisor.
After transforming my company, Intrepid Wealth Partners, from a financial practice of the old mold into a fully functioning virtual financial practice, I noticed that every part of a financial planner’s role could be fulfilled online.
It makes total sense to use web-based tools and technology to serve clients. In fact, it opens you up to an international client base, because the location doesn’t matter. Further to this, there are huge cost savings, and my work has become more efficient due to the use of incredible technology.
In this article, I’m going to give you an overview of how to build a financial planning practice online. I will highlight the benefits of remote work, not only in the time of Corona but in the 2020s, and I will give you insight into some of the brilliant online tools you can use to make it happen.
Let’s start with the benefits of remote work.
Remote work in the time of Corona and beyond
Before we get into building a financial practice online, let’s look at why remote work is the future of many industries, why it’s so beneficial and easy to embrace.
Firstly, remote work affords you the time to focus on yourself and your family a bit more than when running a traditional financial practice.
Secondly, most people love the idea of remote work because it means freedom to run your own schedule; it means being able to get the job done in your own time. Gone are the days of a standard 9-5, 5 days a week way of working. But thirdly, and most importantly, it means that work does not need to be done in a specific place to be executed successfully, which is perfect for serving new-age clientele like millennials generation z.
So, how does this impact the financial planning industry?
Picture this: instead of commuting to an office each day to work from a designated desk, you can execute your projects and design your days so that you can obtain and maintain an awesome life/work balance. In essence, it also makes it a lot more affordable to start your own financial planning practice. With remote work comes a substantial decrease in fixed expenses—the main ones being office space, in-house staff, and money spent on commuting.
You can choose to go forward as a one-person operation, cutting costs significantly, or you can employ people on a part-time basis, virtually, of course! The beauty of remote work is that you only work on-demand, which extends to your employees too. If you only need someone for a few hours a day, then this new way of work has made that possible. You no longer need to commit to giving people full-time employment; you can pay them on an hourly basis.
According to Flexjobs, an employer can save $22,000 per remote worker per year.
So, let’s look a little deeper at how the benefits of remote work will add value to building a successful online business.
Less time commuting
Being a virtual financial advisor means less time and money spent commuting, which means you can spend more money on building a stronger, more efficient service, and spend more money on marketing your services. This way, you can surely spend at least 10% of your gross revenue on digital marketing.
Think about how much time you can save as well. For example, let’s say you spend 1 hour a day in the car (driving to and from your office and client meetings), you do this 5 days a week, and you do this 50 weeks a year. Add it all up, and it equals approximately 250 hours a year in the driver’s seat. That is the same as 6.25 40-hour workweeks a year.
Think about this, over 6 40-hour workweeks a year; you are wasting time sitting in your car, that’s crazy!
Think about how much money you spend on gas or even domestic flights to meet with clients in-person, never mind what you spend on accommodation when meeting with clients in other cities? That sum can now go into client acquisition. Plus, marketing a virtual service is much more attractive to younger generations than the brick and mortar financial planning services.
Not having to pay for office space
Ok, so this is a big one. Arguably the most expensive part of running a company is renting office space to accommodate yourself and your employees.
By going virtual, you won’t have to consider the following:
- Private kitchen
- 24-hour access
- Lounge area
- Meeting rooms
- Video conferencing
- Janitorial services
- Technology for employees such as computers, cellphones, and the internet
As you may know from experience, the price of renting office space varies. An office space per person can start around $300 per month in the US and goes up drastically depending on location and the facilities included.
By working remotely, the money you would have spent on office space can either go directly back into your business, your pocket or even just renting a smaller office for only you. The reality is that one of the first things that cripple a business when money is a little tight is not being able to pay overheads, such as employee salaries and office space.
With remote work, and more specifically by being a virtual financial advisor, you won’t have to worry about any of the above. Yet, you will still be able to deliver the same, if not more efficient and tailored service to your clients.
It quite literally is a win-win option for the future of your business.
Using the tech available to provide better service
Remote work is impossible without the incredible technology available at the click of a button or the swipe of a finger. Technology is what makes being a virtual financial advisor viable.
Here in the US, our Wi-Fi connections and internet infrastructure are the best in the world, so staying connected shouldn’t even be a concern. It is also very affordable.
Thanks to smartphones, cloud computing, instant messaging, and project management software, we can communicate and collaborate instantaneously from most anywhere in the world.
By getting your hands on the necessary technology to operate a virtual financial practice, and keeping up to date with the latest tools, there is nothing that can stop you from being successful.
This leads me to the next step in getting your head around how to build a financial practice online.
Online tools you can use to embrace remote work
Before we get into some of the spectacular tools available, it is essential to remember that as a virtual financial advisor, you are not changing the advice and services you provide to your clientele. All you are doing is changing the way you communicate with prospects and clients; you are swapping out the kitchen table for a webcam, same advice, and relationship, different medium.
To take your financial planning practice online successfully, all you need to do is convert the brick and mortar way of communicating to a new way of maintaining relationships. You will then need to support this way of communicating with online tools to help you provide your services virtually.
So, let’s look at how you would conduct meetings virtually.
All your meetings are done over means of video chat, and here are some of the most popular tools for communication.
FreeConferenceCall is a really great tool that I use as my primary virtual meeting tool.
It is easy for me to set up and easy for my clients to click a link and join a meeting. It allows for multiple participants and does not cut the meeting off after a certain amount of time. I can screen share and even give the client control if they want to show me something on their computer. What is also nice is that if for some reason, a client can’t join via a computer, this service also has a call-in number so people can still be part of the conversation.
By far, this is my favorite virtual meeting tool. And yes, as the name implies, it is free!
You’ve probably used Skype before. As the original video conferencing software, it is the most well-known and widely accepted tool. With Skype, you can make free online calls, use free messaging, and very affordable international calling to mobiles or landlines. What we love most about this tool, though, is it’s Skype for Business feature – the best tool for internal online communication.
So, if you were to build a virtual team in the future, this feature combines instant messaging, video conferencing, calling, and document collaboration into a single, integrated app for effective collaboration.
Zoom is excellent for external communication outside of your company. Zoom offers a full-featured Basic Plan for free with unlimited meetings, and there is no trial period. Just keep in mind that the basic plan has a 40 minutes time limit on meetings with three or more total participants. If you decide to pay for it (recommended), you can conduct meetings for as long as you like – perfect for that initial meeting with new clients.
The beauty with Zoom is that you can schedule meetings well in advance and send the exclusive meeting link straight to your clients, or if you have Office 365, you can send them a calendar invite, which automatically syncs with their calendar on their smartphone.
Skype and Zoom are the most widely accepted tools for video communication. Still, you will probably find that for younger clients, FaceTime or a WhatsApp voice call will also work, especially for check-in meetings.
Any other client communication can be done over email or even short video messages via cool tools like Loom.
At the end of the day, as long as both you and your client have a decent internet connection, you can conduct a video meeting with a client – whether it’s from a home office, or even on vacation if needs be.
This way, you can build a business around your life and not the other way around.
Now, let’s look at some of the online tools available for doing the actual work of a financial planner.
When it comes to writing and compiling documents, crunching numbers, or creating a presentation, I recommend Office 365 simply because you won’t have to adapt too much. It’s an online version of all of the administrative tools that would usually come with a Windows PC or laptop.
It includes MS Word, Excel, Powerpoint, and more, but what makes it truly valuable is that it’s a brilliant collaboration tool for remote teams. You can have up to five members on one subscription, and with that comes an all-inclusive, synchronized suite for running the administrative side of any business. From email and Skype for Business to OneDrive – which makes the work you do available to you from anywhere—and to others when you collaborate or share. With a subscription, you are also able to download all the apps to your desktops for those that prefer working offline and uploading later.
To understand the extent of what you can do with Office 365, read this in-depth article – there’s a whole lot.
Conneqtor – The Virtual Advisor System
Now that I’ve explained the benefits of remote work and taking your financial planning practice online, ask yourself this: are you ready to join fellow entrepreneurs in the virtual movement of the future?
Conneqtor empowers financial advisors like you to have the ability to:
- Exponentially make more money while effectively managing risk
- Work with more prominent and more ideal clientele
- Work from anywhere in the world while expanding your reach
- Leverage your time & money to increase performance
- Live the life of your dreams while helping your clients do the same
- Achieve and maintain a remarkable life/work balance
I’ve created a turn-key system designed to show you (step-by-step) how to transform your business in a digital world. If you’re wondering what infrastructure you will need to run a virtual financial practice, then this system is your answer.
Conneqtor includes comprehensive guides on the following crucial factors for a successful virtual financial advisor:
- How to market your virtual financial planning business online
- How to build a virtual team
- How to work with your compliance team
- How to define and vet your “ideal client”
- How to create an online presence that will drive inbound leads to you 24/7
The new world of work is right before your eyes and at your fingertips, will you take the opportunity? Download our free e-book to find out more.
Thanks for reading!
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