If I were to ask you, "What is the most dangerous item you can bring on a sailboat?" how would you answer?
Is it a propane heater? Glassware? Bananas? Your ex-wife?
Nope. Nope. Nope. And maybe, but not what I was going for.
Here's a hint: it's also one of the most dangerous items when launching your RIA.
The most dangerous item you can bring on a sailboat is a schedule.
Patrick and I had seven days to sail our new-to-us sailboat — a Hinckley Sou'wester 42 named Mirage — down from Mystic, Connecticut to Deltaville, Virginia. Neither one of us could afford to take more than a week off from work at that time. One day of driving up to Connecticut, one day to recover from the trip, left us with five sailing days to make the roughly 360 nautical mile journey.
We also did not have time for a normal shakedown cruise — one where you get to know the boat, see what she can handle, and more importantly, what she cannot. We would be learning about her as we brought her down the coast — the running rigging, the sails, the engine, the nav systems — all by reading archaic user manuals and good ol' trial and error.
We planned, we packed, and we prepared as well as we could for a maiden voyage on a forty-year-old boat. We had all the required safety gear — life raft, dinghy, EPIRB, jacklines and harnesses — you name it.
We left in the wee hours of the morning on a warm July day and headed out through Long Island Sound. We made Port Jefferson by nightfall. The next day found us navigating the East River past Manhattan, and out into New York Harbor with Lady Liberty greeting us as we sailed toward the Verrazzano Bridge. But the weather forecast was deteriorating, and we ended up facing strong winds and heavy seas by the time we were on the open Atlantic Ocean.
Unfortunately, because we had a schedule that we felt we had to keep, we continued on when we shouldn't have. We were offshore in gusty winds with powerful waves hitting our port side — in a boat we had known for less than 72 hours. The scariest point was when Patrick turned to me and said, "You need to put on your life vest and tie in — NOW." Words you don't want to hear from your captain.
We made it out of the waves and wind safely — but we were lucky. It could've ended badly, damaging our boat or injuring one of us. We took chances we shouldn't have because we were up against a deadline. Had we ignored the schedule, we could have had a leisurely trip down the coast, stopping and waiting out the weather in port while we became more acquainted with Mirage and her systems. This investment of time would have made the trip less dangerous. And perhaps more importantly, we would have gained valuable knowledge about the boat while we waited — like, hey, how does our reefing system actually work?
That knowledge would have left us better prepared to weather any future storms that might catch us unaware. It would have had an immediate payoff of safety and a future payoff of a better understanding of our systems — making us more capable of handling the inevitable trials and tribulations that arise on such a journey.
So What Does This Have to Do With Launching an Advisory Firm?
Everything.
When you first start your RIA, you have an idea about what you want to accomplish — and when. Maybe you have a "runway" of cash that will only last a year. Or maybe you just want to show your know-it-all brother-in-law that you can make it to $100M AUM in 18 months. It's great to have SMART goals — but don't tie yourself to a schedule so rigidly that you don't take the time to learn and properly configure your CRM.
Your CRM is the cornerstone of your business — it is the vessel that will take you where you want to go.
A CRM is the single source of truth for everything about your prospects and your clients. It is the system you build to guide employees through tasks and workflows. It is the hub from which all other systems are fed. When configured properly, the data it houses can flow easily to your email, your planning software, your custodian. The reports can tell you which marketing campaigns are moving the needle, and which ones just aren't worth the time. And if you ever find yourself in an audit, it's a properly maintained CRM and the uneditable, time-stamped notes that will keep your ship from going down.
Quick tip: If you have to set aside your launch schedule to pause and properly configure your CRM, do it. The immediate payoff is safety; the long-term payoff is a system built to handle whatever comes next.
I know you want to just get out there and put up your sails — to push yourself and your business and see how fast they can move. But please, do not forego the step of thoroughly understanding your CRM. Make sure she is outfitted properly for where you want to go. Build workflows that will help keep her afloat and moving swiftly. And if you have to set aside your schedule to pause and optimize your system, do it. I guarantee it will be worth the wait — and you'll be so much less likely to have to put on a life vest and tie in.