One of the benefits of owning a financial planning business is an advisor’s ability to control their work schedule. While some advisors might want to go full throttle, perhaps working well over 40 hours per week and taking few days off, others might prefer a more relaxed schedule, perhaps taking every Friday off or going on vacation for multiple weeks each year. But some advisors who choose to take more time off from their schedules might be concerned that prospects and clients will consider them to be less committed to serving their planning needs than other advisors.
In our 109th episode of Kitces & Carl, Michael Kitces and client communication expert Carl Richards discuss how advisors can approach decisions regarding work flexibility and tactics they can use to communicate these choices with prospects and clients.
Notably, the choice of work schedule can affect the type of client with whom an advisor might want to work. For instance, while landing an ultra-high-net-worth client is likely to bring significant revenue into the firm, such clients could prove demanding on the advisor’s time. While this might work well for some advisors willing to put in the requisite hours, it could strain other advisors seeking more flexibility. On the other hand, some prospects might prefer to engage with an advisor who works a limited number of hours to serve as a mentor, if that is their own goal for their business or career as well (in which case the advisor’s flexible schedule could actually attract more clients!).
An advisor’s desired work schedule can also play a role in how they choose to develop their client base as they build their firm. For instance, an advisor might purposefully limit the number of clients they service in order to have the flexibility of only working a certain number of hours each week (e.g., take on no more than 25 clients to maintain their 20-hour workweek). While a prospect might be concerned that their needs will not be met by an advisor working less than full time, the advisor can explain that they deliberately manage a smaller client base than other ‘fulltime’ advisors, which lets them devote their full attention to each client despite their shorter workweek.
Further, by being transparent about their flexible schedules, advisors bring the conversation into the open not only for their clients, but for other advisors as well. As while some advisors might think they are alone in considering ‘alternative’ work schedules, discussing these issues more openly can show that there are many others in the same boat. And receiving constructive feedback from supportive peers, mentors, and coaches who understand and share similar issues can help advisors decide how to meet their own needs while continuing to provide high-quality service to their clients.
Ultimately, the key point is that even though the decision to adopt a more flexible work schedule (and choosing how to communicate this choice to clients) can be difficult, advisors may find that creating the working conditions that optimally support their own work-life balance can help them not only attract new clients who appreciate the advisor’s talents (and who may even look up to them as role models and mentors helping them to implement similarly balanced lifestyles), but also to provide their clients with the support they need to achieve their financial planning goals!
