How can you prepare for 2010 and beyond?

Industry expert Marie Swift reviews the best practices of advisors in a new 60-minute web seminar.

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WEDNESDAY, SEPTEMBER 30TH at 4:00 pm (ET)

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In the March issue of Financial Planning, I wrote about advisors whose businesses flourished in 2008 despite the economic downturn. Those advisors had implemented marketing, public relations and practice management techniques that helped them (and their clients) through tough times.

Now that the economy is more stable and the investment markets seem to have thawed, it's time to revisit the issue and ask: Now what? If the worst has passed, what are advisors doing to position themselves for growth and prosperity in the future?

My interviews with several advisors, as well as industry coaches and consultants, reveal that success will come from a combination of tried-and-true strategies combined with innovative ways of improving client contact and services.

Let's look at what will work in the future as we head toward 2010.

COMMUNICATE

It's been said many times, and it remains true today: Client communication is the most important thing you can do to build and sustain your business. Advisors who took care of their clients during the market downturn are reaping the benefits today. By directly addressing clients' fears and concerns during the crisis atmosphere, the advisors built a foundation of trust. Those clients remained with their advisors, and they have become strong advocates and referral sources.

"Last year was the best year we've ever had. In 2008, our revenue was up 38%," says Brad Bofford, a principal at Financial Principles, an independent financial advisory firm in Fairfield, N.J. "What helped us to stay afloat was constant client communication. That's always been important, but never more than last year."

Through phone calls, in-person meetings and regular email updates, Bofford and his partner Mike Flower stayed in touch with clients even when the news was negative. They shared the angst and worry—while displaying confidence that their long-term strategy would succeed.

"One of my top clients has been working with us for about three years, and he called me one day to say that I've not only been an advisor, but I've been like a psychologist and a heart doctor," Bofford says. "Just recently, that client referred me to his cousin, who became a client."

Whether you're speaking with a current client or a prospect, a simple message is better. "Leave all the complicated stuff at the door. You know what I'm talking about—all the minutiae, the numbers and the betas—and just get back to the basics," says Ginny Hudgens, president of Back Office Advisor, a consulting company that works with small to midsize RIA firms.

Organize group meetings, but call them fireside chats or economic summits—not seminars. Make them less formal and more interactive than a typical seminar. "The idea is to enable people to ask specific questions and get specific answers," Hudgens says. "Compliance departments hate this, of course. They want to see a script and there is no script, just what's in the room. There's something about being in a community with experts in the front of the room to answer questions, like how did we get into the mess and how we're going to get through it, that just makes everybody feel better."

Even if times are hard, or even if it's not in your nature, you've got to pick up the phone, host those meetings and reach out to people. This is not cold calling. It's relationship building. Talk to people. Get out there: Circulate.

BUILD DYNAMIC WEB CONTENT

Websites and blogs are part of a multifaceted communications program. But don't assume that having an attractive website is enough. You need dynamic content, and you need to present it in multiple formats—such as live webinars, recorded audios and multimedia presentations, blog and Twitter entries, discussion forum postings, LinkedIn or FaceBook profiles, etc. The more interactive, the better.