Stock Broker feels too bogged down- owns own business, how to focus to be more effective too many clients?

Question

Stock Broker feels too bogged down- owns own business, how to focus to be more effective- is it possible to have too many small clients?

Answer 1

you could hire a part time person to handle the smaller clients, and you can focus on the larger ones. that is a good problem to have, I tried being a broker for years and finally gave it up, could not find enough people to invest..sounds like you are doing very well........remember you never know what kind of referral you can get from even a small client, so you don't want to make them feel like they are not important......I also used to make up and mail out a monthly newsletter, you can put anything you want in it, keeps people informed about what is happening in the stock market,

Answer 2

You cannot just higher an assistant because of licencing, but I suspect you know that.

Many funds and brokerages have minimum account value because the adminstrative burden is simply to high.

I take it you are an introducing broker, is there a way to outsource some of the administrative burdens? Also, perhaps you can create criteria to lump clients together. (i.e. if they have similar needs, invest them all alike (to the extent you can). (though that may be a little fishy).

In your case, I would impose a minimum account value on a going forward basis (i.e. grandfather out your existing clients)

Answer 3

Well, look at mutual funds. They have lots and lots of small clients. How do they do it? For starters, they separate sales, investment management, and customer service; each is carried out by a specialized group of workers. You can do the same. Figure out what it is that you are best at and let other people do the rest...

Answer 4

Yes, it is possible to have too many small clients, but if he is any good they will soon be big clients ;)

I would suggest an assistant, secretary or outsourcing some of the day to day tasks such as paper work, phone questions etc..