Facts vs. Feelings:

 ‘A Financial Advisor’s Guide to Running a Business with Clarity and Confidence’

Financial advisors, play a critical role in guiding clients through their financial journeys, offering insights, strategies, and peace of mind. While they often serve as the voice of reason for their clients, it’s equally important that they learn how to be the voice of reason for their own businesses. This is not a journey that needs to be travelled alone and there can be many people to help such as a mentor, close friend, partner or a professional coach.

The day-to-day running of a financial advisory business is filled with highs and lows. There are moments of triumph when Advisors win new clients or help client’s reach significant milestones. There are also moments of frustration when things don’t go as planned such as the recent unexpected market downturn.

In these moments, it is easy to become overly focused on feelings. Whether it’s the excitement of a successful quarter or the stress of a challenging one. For Business Owners and Advisors, it is crucial that they recognise that feelings are valid, but they may not always reflect the true state of their business. Balancing feelings with a foundation of facts can provide the platform to make better decisions that can lead to long-term success.

The Role of Facts in Business

Feelings are a natural part of being human. We experience joy, fear, disappointment, and excitement. All of which are part of our emotional landscape. However, when it comes to running a business, feelings alone should not dictate your decisions. Financial advisors often face pressures from fluctuating markets, client expectations, business growth goals, or simply the emotional weight of the profession itself. In these moments, they may experience feelings that suggest they are either on the verge of success or heading toward disaster.

The reality, though, is that feelings can be a poor indicator of business health. It’s easy to get swept up in a bad day or even a tough week, but these moments might not tell the full story of your business’s trajectory. For example, you might feel discouraged after a tough client meeting, but when you look at the facts such as the number of new clients you’ve gained this quarter or your overall revenue growth, you may see that your business is still on an upward path.

Key business metrics such as client retention rates, the number of new clients, revenue growth, assets under management and trail fees can provide concrete evidence of your success (or areas for improvement). These facts give you a clear, objective perspective on how your business is performing, allowing you to make decisions based on data, not just emotions.

When Feelings Can Be Your Ally

While facts should guide your business strategy, feelings still have an important role to play. As financial advisors work with people and it is a people business. Clients a lot of the time are navigating personal, emotional, and often stressful financial situations. Your ability to connect with clients, understand their emotions, and demonstrate empathy is invaluable. In these interactions, your feelings help guide your actions and decisions in a way that’s supportive and compassionate.

However, it’s crucial to separate your emotional responses from the business metrics that drive decisions. For instance, if you feel anxious about an upcoming client presentation, that feeling may motivate you to prepare more thoroughly, which is a good use of that emotion. But if you allow that anxiety to cloud your judgment about the financial health of your business, it could lead you to make hasty or overly cautious decisions that don’t reflect the true picture.

The Sweet Spot:

So, where do facts and feelings intersect? The key lies in using your feelings as information, not as the driver of your business decisions.

• Facts give you the clarity to make informed decisions about where your business is headed. They allow you to step back and assess the true state of affairs.
• Feelings give you valuable insights into your internal state and your connection with clients. They can be a useful tool in guiding client interactions and maintaining emotional well-being.

Final Thoughts

As a financial advisor, your ability to make objective, fact-based decisions is crucial for your business’s long-term success. But at the same time, your emotional intelligence and ability to connect with clients on a personal level will remain a key part of your professional toolkit. By striking a balance between facts and feelings you can navigate your emotional landscape, and approach your business with greater clarity, confidence, and compassion.

Remember, business is not just about the numbers; it’s about creating value for yourself, your clients, and your community. By grounding yourself in facts and leveraging your feelings in the right way, you can build a thriving business that stands the test of time.

If I can help you further, please reach out to me on www.advisorboard.ie