Launching a business? Balance your passion with relentless planning, wealth advisor urges 

Editor’s note: The opinions expressed in this commentary are the author’s alone. Patrick Cohen is senior vice president, financial advisor with The Ferguson Smith Cohen Group at Morgan Stanley in Kansas City.

The day is here. You have decided to start a company and it is time to put in the work to initiate lift-off. Starting a company, business endeavor or anything entrepreneurial takes guts so I commend you for taking that first step. But what’s next? There is so much to think about in terms of what you are trying to accomplish with your company itself in addition to the fact, there are those pesky items like: finances (payroll), legal, employees, sales, time, etc. Hopefully, this brief article helps make sense of things as you embark upon this journey. Let’s dive in.

Patrick Cohen, The Ferguson Smith Cohen Group at Morgan Stanley

First, a quick tidbit about myself and our team, The Ferguson-Smith-Cohen Group at Morgan Stanley. We are a private wealth management group that helps manage the everyday finances, investments, insurance, retirement and tax planning for families, business owners and foundations/endowments. 

When starting a company, you are likely jumping through your shoes to get your product or service in front of as many people as possible and ASAP. Before you do that, be sure to get counsel on the financial/legal/tax side first. Talk to a financial advisor, CPA, and an attorney about the best legal/tax structure to begin your journey. This is something I would not gloss over as it will have a major impact if you wind up being successful. Make sure you have the appropriate documents and corporate structure in place that allows you to lead without materially diluting yourself as fundraising occurs. This will also include trademarks, copyrights, patents, etc. Talk to experts in these realms to ensure every detail is covered while protecting you/your business. It’s also important to think big picture. Once you do start hitting stride and making money in your business, be sure to set some aside for the long-haul. Whether that’s through a retirement plan (which can offer tax-deferral) through your company or a “rainy day” account, it’s important to save and monitor that progress. 

Have a plan in place and stick to it

Before I got into the financial services world, I was not a big planner. I quickly realized that would not work as a wealth advisor and “owner” of a business, so I pivoted. I naturally began processes and routines of tracking my business and where it was successful or could improve. I had to take time out of workdays to plan for the following weeks, months and years. This often meant late nights and even weekends in the office. However, it was because of those longs days and night that I developed a natural baseline for work ethic and a game plan for acquiring new clients. It will quickly become a natural part of your business process. Inevitably you can allow for flexibility once the business starts coming in. 

The pursuit of success comes through relentless work and excellent communication. Your passion for your product/service may make all the sense in the world to you but to the average person it may be completely foreign territory. Present your product or service as if you are speaking to a 4th Grader. That sounds funny to say but it is true. No one will adopt a new idea, service, or product if they cannot understand it. In our world of finances, we speak about complex topics like the direction of interest rates, hedging currency risks, price to earnings multiples and much more. When we speak to clients, we must communicate simply and concisely to make them feel comfortable about why we are making an investment decision we think is best for them. If I cannot explain why I am investing in something to my elementary aged daughter, then it is likely not a good investment to begin with. This is an approach I would use with any marketing campaign as well. 

Get comfortable with being uncomfortable

When I shifted from an “analyst” on our team to becoming an “advisor,” I was forced to put myself in a challenging situation: convince people to move their money to me and my team. Money is extremely personal as it is everyone’s blood, sweat and tears on a statement. Why should they choose me over their best friend from college or someone they have gotten to know over many years? I had to produce a compelling reason as to why my team would be better than their current situation and develop effective ways to communicate it. I forced myself out of my comfort zone wherein I was relentless about attracting new clients. This meant a sizable number of calls, meetings, networking events, e-mails, social media campaigns and speaking engagements. The good news is, it has worked and the clients I attracted have typically been delighted by our services. But again, it is a long path to get there and one that requires us to elevate ourselves.  

Work your network or develop one fast

You might be surprised how quickly people will become attracted to your passion for your startup. I love my world of financial services and the people I work with. It radiates from me when I talk to clients/prospects about our team and process. Tell your story far and wide with the utmost passion. When you’re just getting going, it’s good to practice that “elevator pitch” on friends and family first. The more you do it, the better you will become. Do not be afraid to ask anyone for coffees, lunches, cocktails even if it means you would just like to pick their brains. 

People will be flattered you thought of them as a “business advisor” all the while you can explain your product or service. Very rarely are sales closed at a first meeting. Cultivate that relationship and continue to keep in communication routinely without being overbearing. This means you need to get in front of a lot of people. “The follow-up” is a fine art as well. An immediate “thank you” after a meeting via e-mail or hand-written note is always appreciated. From there, get into a communication routine that you find works (every four to six weeks or thereabouts). This applies to fundraising, client acquisition or most anything business related. 

Buckle up and enjoy

Never lose the passion for what you’re trying to accomplish and enjoy the ride. Anything worth pursuing isn’t easy. There will be a lot of ups and downs throughout but always stay focused and driven no matter the path. You never know when that first order, client acquisition or new partnership will hit you. Just keep grinding and accept feedback left and right! 

The Ferguson Smith Cohen Group is a team with the Wealth Management division of Morgan Stanley located in the Leawood, Kansas branch. The views expressed herein are those of the author and may not necessarily reflect the views of Morgan Stanley Smith Barney LLC, Member SIPC. SIPC – Securities Investor Protection Corporation. The Ferguson Smith Cohen Group may only transact business in states where they are registered or excluded or exempted from registration The Ferguson Smith Cohen Group | Leawood, KS | Morgan Stanley Wealth Management. Transacting business, follow-up and individualized responses involving either effecting or attempting to effect transactions in securities, or the rendering of personalized investment advice for compensation, will not be made to persons in states where [FA Name] is not registered or excluded or exempt from registration. 

Morgan Stanley Smith Barney LLC (“Morgan Stanley”), its affiliates and Morgan Stanley Financial Advisors or Private Wealth Advisors do not provide tax or legal advice. Individuals should consult their tax advisor for matters involving taxation and tax planning and their attorney for matters involving trusts, estate planning, charitable giving, philanthropic planning or other legal matters.

Morgan Stanley Private Wealth Management, a division of Morgan Stanley Smith Barney LLC. Member SIPC.

CRC6365721 2/24