Starting your own financial firm means that you have to determine how you’re going to handle clients who are difficult. When you worked for another firm, you had the guidance of that firm, but you have to make these decisions on your own now.
There are a few things to consider when you have a client who’s making your life stressful. You have to find the balance between taking care of the client and protecting your firm. This isn’t always going to be easy.
Check out potential clients
It’s a good idea to meet with potential clients before you sign them to your firm. You can discuss their goals and needs. Talk to them about what they can expect from you. When you do this, be sure that you don’t set unrealistic expectations. Be honest about what might happen with their portfolio and ensure they understand your strategies.
Know when to cut ties
There are some clients who just won’t work well with your firm. If you simply can’t please them, be honest and let them know that you’re not a good fit for their needs. While you might be losing a client, you’ll end up saving time that you can use to bring in new clients or shore up your relationship with existing clients.
One of the most important things for you to do is to ensure that the client-advisor agreement you have clearly defines the roles and responsibilities of the firm and client. This can help to provide your firm with a huge hedge of protection that can prevent upset clients from using the legal system to try to come after your firm just because they’re upset about the status of their portfolio.