If you’re a financial advisor, you may be thinking about how to market your services to people you already know. After all, what could be easier than working with people you’re already close to? But before you start offering your services to friends and family members, it’s essential to understand the pros and cons of this type of work.
This article will provide tips on approaching family and friends as a financial advisor, as well as some things to keep in mind before taking on this type of client.
Should You Approach Your Friends And Family as a Financial Advisor?
First, let’s discuss if you should offer your financial advisor services to friends and family members. On the one hand, it can be a great way to start your business. After all, you already have a built-in rapport and relationship with these people. And since they know and trust you, they may be more likely to do business with you than with a stranger.
On the other hand, working with friends and family members also has some potential downsides. For one thing, it can be challenging to maintain a professional relationship with people you’re already close to. You may also find it harder to give objective financial advice to people you know on a personal level. And finally, if things go wrong, it could damage your relationship with these people.
So, how do you decide if working with friends and family is right for you? Read on to learn about these situations’ pros and cons to help determine if you should take this path.
Pros of Working With Friends and Family
1. You know each other already.
This is probably the most significant advantage of working with friends and family members. You already have a rapport and relationship with these people, making building trust easier. They’re also more likely to take your advice since they know and trust you.
2. It’s a great way to get started.
Working with friends and family members can be a great way to get your business off the ground if you’re just starting as a financial advisor. These people are already familiar with your work, so you don’t have to spend as much time marketing yourself to them.
3. You can offer more personalized service.
Because you know your friends and family members on a personal level, you can offer them more personalized financial advice. This can be a huge advantage, especially if you have clients who are working towards similar financial goals.
4. It can be a good way to build your portfolio.
If you’re looking to build your portfolio, working with friends and family members can be a great way to do it. These clients can provide you with valuable experience and references that you can use to attract other clients.
Cons of Working With Friends and Family
1. It can be difficult to maintain a professional relationship.
The biggest downside of working with friends and family members is that it can be difficult to maintain a professional relationship. It’s easy to let your personal feelings get in the way of giving objective financial advice. And if things go wrong, it could damage your relationship with these people.
2. You may not be able to give objective advice.
Another downside of working with friends and family members is that you may be unable to give them objective financial advice. If you have a personal relationship with these clients, you may be biased in your advice. This can lead to problems down the road if your advice isn’t in their best interest.
3. It could damage your relationship.
Finally, one of the biggest risks of working with friends and family members is that it could damage your relationship. If things go wrong, you could end up alienating these people. And if the situation gets too personal, it could ruin your friendship.
So, should you work with friends and family members as a financial advisor? It depends on your situation. If you are confident it won’t hurt your relationship and can give objective advice, it could be a great way to start the business. But if you’re not sure you can maintain a professional relationship or give unbiased advice, it might be best to steer clear.
Tips For Approaching Family And Friends About Financial Services
If you’ve decided to work with friends and family members as a financial advisor, you should keep a few things in mind.
- Create a Good Reputation First: Before you approach anyone about your financial advisor services, make sure you have a good reputation. Build up your business and get some happy clients under your belt. This will make it easier to sell your services to people you know.
- Be Upfront About Your Intentions: When you approach family and friends about working with you, be upfront about your intentions. Explain that you’re looking to offer your services and see if they’re interested. If they’re not, don’t push it.
- Keep it Professional: Even though you have a personal relationship with these people, it’s important to keep things professional. Draw up contracts, set boundaries, and act like you would with any other client. This will help to prevent any personal issues from getting in the way of business.
- Offer a Discount: One way to sweeten the deal for family and friends is to offer them a discount on your services. This can make it more appealing for them to work with you and help you build your portfolio.
- Don’t Make it About Money: Finally, don’t make your offer about money. Instead, let them know you’re interested in helping them reach their financial goals. If they’re happy with the results, they’ll be more likely to recommend you to other people.
Working with friends and family members as a financial advisor can be a great way to start the business. But it’s essential to be aware of the risks and make sure you can maintain a professional relationship. If you’re not sure, it might be best to steer clear.