If you thought stockbroking business is a bed of roses, then you might be in for a rude awakening. The industry is sometimes fraught with difficulty, uncertainty and depressingly low sales. But, as the sages say, forewarned is forearmed. Now that you know that someday in your stockbroking business you’ll be in a rut, you can come up with a game plan on how you can weather the challenges that might be thrown your way in such an eventuality.
The following are nuggets of wisdom that you can refer to if uncertain in your stockbroking journey:
- If you find yourself in a rut, pause and reflect
It may seem obvious, but very few stock brokers take time to think and reflect over their predicament when they find themselves in one. Try to find out what the problem could be- finding the problem is the genesis of finding a solution to the problem.
Sometimes you may not derive enough satisfaction from the business. You may grow lethargic and unenthusiastic about stockbroking as a whole. If that is the case, the best course of action is to file for a vacation and rest for a couple of days. You need that. After the vacation or short holiday, you will attack your work with more gusto.
Prospecting is an integral part of a stockbroker’s job- mainly because a stockbroker’s income majorly depends on the clients. Therefore, it is important to continue with prospecting for more clients even if you have a splendid rapport with the current clients. Establishing a good relationship with present clients shouldn’t stop you from making the cold calls. Ask yourself: what happens if you lose one or a few of your clients? If you continue with prospecting, this won’t be a cause for concern as you won’t have a fallback.
And, since you have clients, ask for their referrals. It will be the easier way out as most people don’t fancy the idea of cold calling.
- Be available for your clients
Even if you’ve grown so much in stockbroking business that you have a personal assistant who takes care of most of your business- including attending to clients, you still need to squeeze some time off your schedule and personally attend to your valued customers. You don’t want to risk your clients thinking they aren’t important enough to warrant some personal attention from you. It is crucial to set aside some time and talk with your clients to get up to speed with their financial concerns. It doesn’t matter if your assistant does a splendid job at that; sometimes you are what the clients need.
At the onset of your relationship with the client, you likely set weekly meetings to catch up on financial issues and build an investment portfolio. It is unfortunate that most stock brokers forget this initial commitment when they prosper in the stockbroking industry. Even if you are well into the fifth year of your professional relationship with the client, it isn’t wise to cut back on the meetings. They are very, very important.
Keeping in touch with clients is probably the best strategy of keeping them. If they have any burning questions, make yourself available and answer those questions substantively. It is fair enough if you can meet the clients at least twice each month. If you aren’t available to attend to their needs and concerns, they might seek the advice of another broker, and you don’t want that.
It is a trite fact that networking opens the avenue to a lot of possibilities. It opens floodgates of clients to your office. The number of clients you have is sometimes dependent on the number of people you know in the industry. A referral can lead to another referral- and in no time, you’ll be having enough clients to last a lifetime.
- What to do when business is slack
If business is slow, take the phone and do some little prospecting. You may also sign up for training seminars or attend networking meetings. Don’t sit back and relax just because business is slack- you can turn it to your advantage by doing something worthwhile.
- Learn from the best
It pays to benchmark with successful brokers. If you are in a brokerage firm, see how some of the industry’s giants conduct their businesses. For example, you might need to benchmark with CMC Markets and see what makes them tick.