Too many financial advisors and advisor teams never achieve the level of success they desire and deserve because they are unwilling to invest in their business. In some cases this means refusing to purchase the right computer hardware or software to help their team run more efficiently because they are holding out until the firm pays for it. In other cases, it's failure to pay for an additional sales assistant out of their own pocket when their firm says they don't have the budget for it. We've all seen cases like these and seen the result in slower growth or even the inability to manage current clients. Why won't some people invest in their business?
The answer is simple. Too many of us have an employee, instead of a CEO mindset [we'll address this in more detail in our next post. As a CEO, you know that you, and only you, are responsible for the growth and maintenance of your business. Letting your business practice lie fallow because your financial firm isn't willing to invest as much in it as you think they should is foolish. It's your business. Any CEO will tell you that if you want it to grow, you have to be committed enough to your goals to allocate not only your precious time resource, but also your capital. This is also true for coaching, training and even mentoring.
The question is not, "Can I afford to hire a good Business Development Coach?" but instead,"Can I afford NOT to hire a good Business Development Coach to help me take my business to the next level?" The answer lies in what level of business you or your team are currently doing.
A January 2009 "Harvard Business Review" survey of business coaches in America reported that the cost of coaching ranged from $200.00 / hour to $3,500.00 / hour with the median cost being $500.00 / hour. If you are currently generating enough revenue to be paid at a 40 percent or higher rate, then to justify spending $10,000 on a coaching program you need only increase your revenues by $25,000.00 in a year. A good coach should be able to help you improve by several times that amount. In addition, many firms [and even many money managers] are willing to reimburse as much as half the cost of a coaching program if you achieve your goals.
Only you know if your business would benefit from the help of a good coach and if you think the results would be worth the investment. Thanks and good luck. kfg For more information on finding the right coach for your need, click on Selecting the Right Business Development Coach.
Thursday, July 22, 2010
Monday, July 19, 2010
What Kind of Business Do You Want?
What kind of business do you do? Sounds simple but even many "successful" financial advisors fail to take the time to really examine the structure of their business. So many advisors have been in the business for so long that their practice has grown almost of its own accord. For example, inherited accounts may outnumber those found through prospecting and referrals.
"So what?" you say. The problem here is that when successful financial advisors and teams prospect, they carefully select a specific target market that fits their niche business, their "sweet spot." However, over the years, as other advisors leave the firm, their accounts are distributed throughout the branch and "inherited" by the remaining advisors. Unfortunately, the inherited accounts rarely fit the target market of the receiving advisors, making it far more difficult to create an maintain an effective client service matrix. Further complicating this for many advisors is the mindset that you NEVER give away a client, no matter how small. Who knows, they might win the lottery or some other windfall. Instead of a well-ordered business with a solid, effective client service matrix, the result can be a hodge podge of clients of every size with every conceivable financial interest.
Don't get me wrong. You can create and maintain a very successful business based on helping "smaller" clients identify, define and achieve their financial goals. In fact, one of the most successful financial advisors in the industry has done just that. It simply requires a different business practice model to achieve. The one thing you can't do, is succeed by trying to be all things to all people.
Examine your business; the demographics of your clientele, their investment size, needs and resources. Then determine how you want to do business. Do you want to limit yourself to clients in the million dollar plus range? Fine. That will require one kind of business practice model. Would you prefer to work with clients in the $400k - $700k range? That will require a different model. And if you want to work with those in the $200k - $500k range, that will require a different model still. You can become extremely successful working in any one of these ranges.
Don't let a business development coach tell you that you have to do business a certain way. A good coach will help you examine the kind of business you have, the kind you want, and then help you to get it. In other words, a good business development coach will help you identify, define and achieve the kind of business you want. Thanks and good luck. kfg
"So what?" you say. The problem here is that when successful financial advisors and teams prospect, they carefully select a specific target market that fits their niche business, their "sweet spot." However, over the years, as other advisors leave the firm, their accounts are distributed throughout the branch and "inherited" by the remaining advisors. Unfortunately, the inherited accounts rarely fit the target market of the receiving advisors, making it far more difficult to create an maintain an effective client service matrix. Further complicating this for many advisors is the mindset that you NEVER give away a client, no matter how small. Who knows, they might win the lottery or some other windfall. Instead of a well-ordered business with a solid, effective client service matrix, the result can be a hodge podge of clients of every size with every conceivable financial interest.
Don't get me wrong. You can create and maintain a very successful business based on helping "smaller" clients identify, define and achieve their financial goals. In fact, one of the most successful financial advisors in the industry has done just that. It simply requires a different business practice model to achieve. The one thing you can't do, is succeed by trying to be all things to all people.
Examine your business; the demographics of your clientele, their investment size, needs and resources. Then determine how you want to do business. Do you want to limit yourself to clients in the million dollar plus range? Fine. That will require one kind of business practice model. Would you prefer to work with clients in the $400k - $700k range? That will require a different model. And if you want to work with those in the $200k - $500k range, that will require a different model still. You can become extremely successful working in any one of these ranges.
Don't let a business development coach tell you that you have to do business a certain way. A good coach will help you examine the kind of business you have, the kind you want, and then help you to get it. In other words, a good business development coach will help you identify, define and achieve the kind of business you want. Thanks and good luck. kfg
Wednesday, July 14, 2010
Finding the Right Coach
When considering a coach to help you build your business, one of the first questions you need to answer is, are you a sole practitioner [even if you have a support staff of 4-6 people] or a team? There are many outstanding coaches available to help individual advisors take their business to the next level. However, coaches with a real understanding of team dynamics and solid financial industry experience on top are few and far between.
Individual coaching is fairly simple and often revolves primarily around practice management issues or some specific aspect of sales, e.g., prospecting, client servicing, creating an effective value statement, etc. However, while coaching a team also usually includes these issues, they are typically overlaid with other dynamics ranging from internal communications, intra-team relationships, how each team member feels valued (or not), compensation, etc. The affects of outside influences on the team [e.g., family issues, health, etc.] are also more complicated because of the increase in complexity of the team system. When working with teams, the "identified problem" is RARELY the core cause of difficulty but simply one more symptom of the underlying issue.
Of course, once you decide you need a team coach, you need to do the same due diligence as we suggested for individual coaches in an earlier blog. Thanks and good luck. kfg. For more information on finding the right coach for your need, click on Selecting the Right Business Development Coach.
Individual coaching is fairly simple and often revolves primarily around practice management issues or some specific aspect of sales, e.g., prospecting, client servicing, creating an effective value statement, etc. However, while coaching a team also usually includes these issues, they are typically overlaid with other dynamics ranging from internal communications, intra-team relationships, how each team member feels valued (or not), compensation, etc. The affects of outside influences on the team [e.g., family issues, health, etc.] are also more complicated because of the increase in complexity of the team system. When working with teams, the "identified problem" is RARELY the core cause of difficulty but simply one more symptom of the underlying issue.
Of course, once you decide you need a team coach, you need to do the same due diligence as we suggested for individual coaches in an earlier blog. Thanks and good luck. kfg. For more information on finding the right coach for your need, click on Selecting the Right Business Development Coach.
Wednesday, July 7, 2010
Do You Need a Business Development Coach?
Let's face it, the last two years have not been a lot of fun for financial advisors and advisor teams. The markets have been all over the place and there is considerable concern about a possible double-dip recession. During this stressful time many advisors have chosen to retire and leave the business. Others have hunkered down hoping to outlast the current mess and the proposed regulatory changes coming out of Washington. However, a few of the top advisors / teams have chosen to move forward in this best of all possible prospecting environments and build their businesses. One such team with whom I have been working is on track to bring in additional net new money in excess of $35 million this year after adding $26 million net new last year. They have chosen to move forward with enthusiasm. So can you.
What's all this have to do with whether or not you need a business development coach? Think about your business, your practice management, your clientele, your team, etc. Is everything going the way you wish? If so, great! However, if not, you may benefit from a business development coach if:
-- there is infighting within your team over money or responsibilities
-- you feel that your practice management is overwhelming you or your team
-- you have difficulty prospecting, asking for referrals, etc.
-- with the market so unstable you have difficulty asking clients for more assets
-- you have difficulty communicating your added value to clients and prospects, or
-- you don't feel that you are making the progress you should
If you answered "Yes" to any of these questions and are prepared to invest in your business, you may benefit from a good business development coach. Over the next series of blogs we'll discuss how to find the best coach for your / your team's needs.
For an article on how to find the best coach, go to Selecting the Right Business Development Coach.
What's all this have to do with whether or not you need a business development coach? Think about your business, your practice management, your clientele, your team, etc. Is everything going the way you wish? If so, great! However, if not, you may benefit from a business development coach if:
-- there is infighting within your team over money or responsibilities
-- you feel that your practice management is overwhelming you or your team
-- you have difficulty prospecting, asking for referrals, etc.
-- with the market so unstable you have difficulty asking clients for more assets
-- you have difficulty communicating your added value to clients and prospects, or
-- you don't feel that you are making the progress you should
If you answered "Yes" to any of these questions and are prepared to invest in your business, you may benefit from a good business development coach. Over the next series of blogs we'll discuss how to find the best coach for your / your team's needs.
For an article on how to find the best coach, go to Selecting the Right Business Development Coach.
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