Its All a Matter of Rapport

What is "rapport" and why should you care? Have you ever had two meetings with a prospect or client and one of the meetings went very well and the other failed? If so, the odds are that you were in rapport with your client in the good meeting and out of rapport during the bad meeting. Of all the definitions of rapport, I think the easiest to understand is simply being "in sync" with the other person. When we're in sync, we feel that we have a lot in common with the other person -- they're just like us. It lets us both be comfortable and open up to each other.

Most people respond somewhat negatively to sales situations. For example, when you go to a store and a clerk offers to help you, do you ever find yourself saying, "No thank you. I'm just looking," even though you entered the store with every intention of making a purchase? We all have. Its called natural sales resistance.

The key to overcoming that resistance when working with a client or prospect is to focus on helping them to identify, define and achieve their financial goals. Then, rather than trying selling yourself or a product, just LISTEN. Whenever you give someone your undivided attention, your unconscious will naturally work to place you in rapport with the way they think, speak and make decisions. That rapport will open doors and reduce resistance to the solutions you offer to their needs. In the end, any successful relationship is just a matter of rapport. Thanks and good luck. kfg

Why You Should Ask for Referrals

Many of the financial advisors I meet with each week hate to ask for referrals. Some feel that it makes them look like they're begging while others fear rejection, and still others think it might make them look as though they are intrusive. This is particularly unfortunate because the most successful advisors in the industry use referrals as their primary source of new QUALIFIED prospects.

When you receive a referral from an existing, qualified client, the chances that the referral is also qualified are close to 100 percent. Think about that. No risk. In addition, there is no better form of advertising than a third party endorsement, especially from a satisfied client. If you call someone to whom your current client has spoken to about you, you are already through the most difficult part of the prospecting process. They already know you're competent, honest, trustworthy, loyal, etc., etc., etc. Now its just a matter of establishing rapport and demonstrating that you can solve their specific needs.

Of course, we're still back to the question, "But, will my clients give me a referral?" Too many FAs are afraid that asking for a referral will appear an imposition to their clients and offend them. Yet, firms such as UBS Financial Services, Hilliard Lyons and Merrill Lynch conduct client satisfaction surveys on a regular basis and report that, on average, over 80 percent of clients surveyed reported that they would be happy to provide a referral, if asked. I repeat, over 80 PERCENT of clients said they would be happy to provide a referral if, asked. Its up to you. So, ASK! Thanks and good luck. kfg

Investing In Your Business: The Cost of Coaching:

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.

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

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.

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.

Giving Correction

I'm often asked the best way to correct an employee or even a family member without creating resentment and defensiveness. Below are eleven simple, effective rules that I have taught thousands of financial advisors over the years:

Rules of Thumb for Giving Feedback to Employees

1. Be sure to choose an appropriate time and place before you give feedback. A good rule of thumb is: "Praise in public, rebuke in private." In addition, it is generally unwise to respond to someone when one or both of you is angry or upset. Wait for a calm time.

2. Always establish rapport before you begin to counsel. Do this whether they have come to you or you have gone to them. It's the surest way to communicate that all important, "I care," message.

3. After you listen to what someone has said, use paraphrasing to make sure you understand what they mean and, especially, what they feel. Remember, if you're going to work from their point of view, you need to be sure you understand what it is. For example: You: "Don, it sounds as though you're feeling a little frustrated with having to work late this week. Is that right?

4. Always discuss the individual's behavior rather than the individual. For example: You: "Sally, it's important that you be in to work on time each day." [effective] Not: "Sally, you have developed the bad habit of coming in late to work." [ineffective]

5. Share your observations rather than trying to read the individual's mind regarding why he/she did something. If you don't know what someone is thinking or feeling, don't guess, ASK! Mind reading builds barriers. For example: You: "Bill, you haven't completed your assignment for the last three days. Is everything all right?" [effective ‑‑ opens further communications] Not: "Bill, it's obvious that you don't care enough about this company to even complete the projects assigned to you." [ineffective ‑‑ promotes immediate defensiveness]

6. Describe what you feel and what you have experienced rather than making judgements about the other person or their actions. Judgmental statements make people defensive and closes lines of communication instead of opening them. For example: You: "Harry, it upsets me when you criticize your team mates. It affects the morale of the entire group." [effective] Not: "Harry, you must be the most sarcastic man on earth." [ineffective]

7. Don't deal in extremes or generalities. In other words, don't label people and remember that no one is all good or all bad. Avoid words like "always" and "never." Once we label someone, we paint them into a corner that leaves them little room to improve. After all, if you think that they're always late, why should they bother to try to improve? You probably won't give them credit for it anyway. For example: You: "Bill, you have returned late from lunch three times this week. What seems to be interfering?" [effective] Not: "Bill, you're always returning late from lunch! You're never back on time! Why can't you get with the program?" [ineffective]

8. Avoid giving advice. Whether the advice is good or bad it changes the nature of your relationship. If your advice is bad (or improperly followed) and fails, he/she may blame you instead of taking responsibility for the outcome him/her‑self. If your advice is good and it works, you will have gained a dependent who will be tempted to come to you to solve all of their problems instead of doing it him/her‑self.

Of course, there will be times when it may be necessary for you to go beyond giving advice by giving an employee an order. As a rule, however, aid your employees in their exploration of alternatives until they feel comfortable in making a decision for themselves. Even if you have a better solution, let them try theirs and experience the consequences ‑‑ either good or bad ‑‑ unless their idea is illegal or unethical and/or will endanger them or the firm.

9. Before you release your emotions, ask yourself why you are communicating to begin with. Are you trying to help them and the relationship, or just to blow off steam? Remember, your emotional release may make you feel better but may also cost you both the relationship and their confidence. What value do you wish your communication to have for them?

10. Only give the person you're counseling as much "feedback" as they can handle. Most of us have many habits or failings that we could afford to improve, but when someone shares all of them with us at once they can be a little overwhelming.

In most cases, it's best to comment on only one or two behaviors in a given meeting. More than that can be both hard to remember and discouraging. Once progress has been made in those areas, praise them for their progress, then go on to the next area for change.

11.Finally, remember to "speak their language." If they have a visual orientation, use visual terms. Auditory words may only confuse them.