Over the last 13 years I have worked with advisors across North America to help them achieve their financial and business goals. I have learned a lot! I would like to invite you to join me for a webinar Thursday, March 18th at 10am Mountain Time (9am Pacific, 11am Central, Noon Eastern) or 1:00pm Mountain Time (Noon Pacific, 2pm Central, 3pm Eastern) where I will share with you what I have learned.
The past few months have been exciting times as I have re-launched my company, Expanding Horizons. We are not a membership organization that provides documents and materials. We work individually with clients and build a business development program around their businesses. The success my clients have experienced is very encouraging. My promise to you is that this will not be a sales presentation. Instead, I will show you the components that clients are using to achieve extraordinary success in some very difficult markets.
Please reply to this email and let me know what time works best for you. I will reply with your login and dial-in login information. I look forward to getting caught up with you.
All my best to you and your family.
March 18th
10:00am – 11:00am Mountain Time
(9am Pacific, 11am Central, Noon Eastern)
February 18th
1:00pm – 2:00pm Mountain Time
(8am Pacific, 10am Central, 11am Eastern)
So that I might ensure that we have a chance to talk, I have limited each of these calls to just 10 participants.
Thanks in advance for joining me. I am looking forward to hearing from you.
Wednesday, March 10, 2010
Friday, February 12, 2010
THE SEVENTEEN QUALITIES OF THE MOST SUCCESSFUL ADVISORS
Having worked with so many advisors over the years, I decided to see if I could sit down and identify the attributes of success. Success for me meant that these advisors were happy with their work. They earned a good living and others saw them as role models. With this in mind, I would like to share with you what I think I have learned about these salient behaviors
1. People don’t need to be told of your INTEGRITY if you really demonstrate it.
2. Always be HONEST, even if it hurts a little. This includes giving credit where credit is due. If someone else wrote the material, don’t call it your own. Plagiarism is dishonesty.
3. Convey your message with PASSION. Real PASSION!
4. Truly BELIEVE in the things you say to prospective clients. If you believe that a solution is right for them, they will believe it as well. If you can’t convey this message successfully and with passion, there is little chance they will adopt your recommendations.
5. It is not about companies and products. It is not about your business logo or the alphabet soup after your name. It is not about your website. IT IS ABOUT YOU! Do they trust you? Do they believe IN you?
6. All things being equal, people do business with people they know and like. All things not being equal, price will not be your disqualifier if they believe you are like them. BE LIKE THEM.
7. Listen hard. Paraphrase and give it back to them. Demonstrate you truly understand. Don’t pretend to listen . . . LISTEN.
8. Understand their heart. People listen with their head, they make decisions to buy from their heart.
9. Set clear and agreed upon expectations. Never get mad at someone for doing something you didn’t tell them they couldn’t do. If you get a “think it over,” it is your fault for not being clear that a decision would be made. NO MUTUAL MYSTIFICATION.
10. Never stop learning. Make some time every day to learn.
11. Set goals and objectives. Doing better than last year is not a goal. If you don’t have a goal, how will you know when you get there?
12. PLAN. Every day should not be a surprise. Real businesses have written plans.
13. KNOW WHERE YOU ARE. Measure your progress daily. Use tools that help you understand how you are doing relative to your goals.
14. Step out of your comfort zone. You cannot grow if you remain in that comfortable place. Go out and try something new for a while.
15. Get some accountability. We can’t do this alone, so find a third party who can be objective and tell you the things you don’t want to hear.
16. Have fun! Albert Schweitzer said “Success is not the key to happiness. Happiness is the key to success. If you love what you are doing, you will be successful.”
17. Remove negative influences from your life.
Some of these behaviors you already embrace. Others will need to be acquired. Don’t be overwhelmed. Working on them one at a time over the course of the year will get you there.
Over the coming weeks, we will take a look at each of the 17 providing detail and exercises to help you embrace these qualities.
Having worked with so many advisors over the years, I decided to see if I could sit down and identify the attributes of success. Success for me meant that these advisors were happy with their work. They earned a good living and others saw them as role models. With this in mind, I would like to share with you what I think I have learned about these salient behaviors
1. People don’t need to be told of your INTEGRITY if you really demonstrate it.
2. Always be HONEST, even if it hurts a little. This includes giving credit where credit is due. If someone else wrote the material, don’t call it your own. Plagiarism is dishonesty.
3. Convey your message with PASSION. Real PASSION!
4. Truly BELIEVE in the things you say to prospective clients. If you believe that a solution is right for them, they will believe it as well. If you can’t convey this message successfully and with passion, there is little chance they will adopt your recommendations.
5. It is not about companies and products. It is not about your business logo or the alphabet soup after your name. It is not about your website. IT IS ABOUT YOU! Do they trust you? Do they believe IN you?
6. All things being equal, people do business with people they know and like. All things not being equal, price will not be your disqualifier if they believe you are like them. BE LIKE THEM.
7. Listen hard. Paraphrase and give it back to them. Demonstrate you truly understand. Don’t pretend to listen . . . LISTEN.
8. Understand their heart. People listen with their head, they make decisions to buy from their heart.
9. Set clear and agreed upon expectations. Never get mad at someone for doing something you didn’t tell them they couldn’t do. If you get a “think it over,” it is your fault for not being clear that a decision would be made. NO MUTUAL MYSTIFICATION.
10. Never stop learning. Make some time every day to learn.
11. Set goals and objectives. Doing better than last year is not a goal. If you don’t have a goal, how will you know when you get there?
12. PLAN. Every day should not be a surprise. Real businesses have written plans.
13. KNOW WHERE YOU ARE. Measure your progress daily. Use tools that help you understand how you are doing relative to your goals.
14. Step out of your comfort zone. You cannot grow if you remain in that comfortable place. Go out and try something new for a while.
15. Get some accountability. We can’t do this alone, so find a third party who can be objective and tell you the things you don’t want to hear.
16. Have fun! Albert Schweitzer said “Success is not the key to happiness. Happiness is the key to success. If you love what you are doing, you will be successful.”
17. Remove negative influences from your life.
Some of these behaviors you already embrace. Others will need to be acquired. Don’t be overwhelmed. Working on them one at a time over the course of the year will get you there.
Over the coming weeks, we will take a look at each of the 17 providing detail and exercises to help you embrace these qualities.
Friday, January 22, 2010
Advisor Survey
I promised you I would share with you the results of this brief questionnaire. Additionally, I have included some commentary in the hope that you might make better use of this information:
1.My business for 2009 was:
41.9% of those surveyed said their business was “somewhat below expectations.” 25.8% said business was “far below expectations.” This means that approximately 2/3 of those surveyed did not achieve their objectives for 2009.
Commentary
To ensure that this experience is not repeated in 2010, I would urge all of you to complete a thorough analysis of last year’s business. Consider your marketing efforts in detail. Review your business successes and failures. Review all client and strategic alliance relationships. Most importantly, do this from a quantitative perspective. This is always the first step Expanding Horizons takes with its clients. Historians say that without understanding the past, we are doomed to repeat its failures. The exercise of review, if done correctly, will help set direction for you in the coming year.
2. Please indicate the percentage of your 2009 new business in each category (nearest 10%):
a. Life Insurance
b. Assets Under Management
c. Qualified Plans
d. Executive Benefits
e. Planning Fees
f. Other
46.9% of those surveyed found that more than 50% of their business came from life insurance. 66.7% of those surveyed found that assets under management account for less than 30% of their business. Just 22% indicated that more than 50% of business came from gathered assets. Qualified Plans, Executive Benefits and Planning Fees represented less than 10% of revenue for approximately ¾ of those responding.
Commentary
Without exception, life insurance and gathered assets played a major role in the business of the vast majority of advisors I spoke with. Those advisors that focused heavily on the life insurance business demonstrated little regret that they had not placed more emphasis on assets under management. However, the advisor that said they drove business through asset gathering often said they wished they had not “dropped the ball” on the life insurance side of their efforts. One conversation with an advisor yielded a very interesting perspective. He said that he always believed that assets under management was the easiest way to build a steady income stream. He indicated that what he failed to realize was that this approach hurt his business during difficult times because he spent too much time calming clients and far too little time driving new business.
3. Please indicate which of the following were part of your marketing plan in 2009 (Check all that apply):
a. Marketing to existing clients
b. Cold marketing
c. Strategic Alliance Marketing
d. Formal Referral Generation Program
e. Networking
f. Social Media
g. Email Marketing
h. Newsletter
i. Seminars
j. Personal Website Lead Generation
100% of those surveyed said that marketing to existing clients was part of their 2009 business development effort. 84.4% identified Strategic Alliance Marketing as a component of their 2009 plan A few conversations here yielded a “fuzzy understanding” of the detailed elements of these two areas of marketing. Some said they saw client reviews as a means of driving business. Others indicated that periodic meetings with CPA’s and Attorneys Were important to their business. Specific plans and their impact on business Were much harder to identify. 46.9% of those surveyed participated in some kind of networking. 40.6% said that cold marketing played a role in their business. 37.5% identified a newsletter as part of their marketing effort. 34.4% conducted seminars to drive new opportunities. Just 28.1% had a formal referral generation program. Less than 22% of respondents considered social media, email marketing and personal website lead generation to have played a role in their business for 2009
Commentary
The feedback here should not be surprising, but still leaves you wondering why so few advisors have built disciplined marketing plans. Marketing to existing clients should mean identified opportunities with their client base. Additionally, there must be a clearly defined campaign to drive appointments and produce results. Strategic alliances are a much tougher issue. “Hope” which permeates most strategic alliance contact is insufficient to drive business. Again, put a marketing plan in place and execute that plan. Networking probably falls in the same category. What was most striking among these numbers can be found in two different areas. First, it is astounding that only 28.1% of advisors actually believe they have a formal referral generation program. I have always believed that advisors that conquer this element of their marketing program will quickly discover how much easier the rest becomes. Conversations with survey participants yielded an unwavering belief in the importance of referral generation, yet less than 1 in 3 advisors actually take this seriously in their marketing approach. Finally, the playing field is changing. Understanding social media, email and web marketing is critically important to the advisor that intends to market in this next decade.
4. Have you completed formal business goal setting for 2010?
50% of survey participants said that had not completed any formal goal setting for the coming year. Since I did not further clarify the term “formal goal setting,” it is likely that some of those that answered in the affirmative have identified an overall number they would like to achieve, but have done little to break expectations down further.
Commentary
The definition of insanity is doing the same thing over and over and expecting a different result. To make 2010 a better year than “below expectations,” it all begins with clearly defined goals. When most people consider goals, they start with the annual sales goal. While that is good, it is not enough. The most successful businesses set daily, weekly, monthly, quarterly and annual goals. There must be goals within each component of the marketing plan. Goal setting serves as markers in the road that allow you to make adjustments to achieve the ultimate objective. Failure to do so makes your business very much hit or miss.
5. Please indicate which of the following are part of your marketing plan in 2010:
a. Marketing to existing clients
b. Cold marketing
c. Strategic Alliance Marketing
d. Formal Referral Generation Program
e. Networking
f. Social Media
g. Email Marketing
h. Newsletter
i. Seminars
j. Personal Website Lead Generation
As with question 3, the vast majority, more than 95% said they would market to existing clients (96.9%) and strategic alliances (93.8%). Networking (65.6%), seminars (59.4%) and joint marketing with another advisor (56.3%) were seen as business driving activities. Newsletters and cold marketing were popular with about 1/3 of respondents. It is interesting to note that social media (25.0%), email marketing (34.4%) and personal website lead generation (21.9%) were of minimal interest to advisors as business driving opportunities.
Commentary
What was that definition of insanity? Oh yes, doing the same thing and expecting a different result. Discussions with advisors have led us to the conclusion that most approach marketing with a “this is how I have always done it” mentality. While I would not argue with the choice of activities, it might be wise to ask, “Why do I choose this marketing approach and what can I do to make it more effective?” Someone told me once that they rarely choose what might be the most effective prospecting activities because “they might take us out of our comfort zone.” This may or may not be the case with most advisors, but it is indeed something to consider.
6. Do you keep a formal “pipeline” for projecting future business?
58.6% of survey respondents said they do keep a pipeline for managing their business. Telephone conversations reveal that there are a variety of pipeline tools in use including:
• CRM solutions which include a pipeline (ACT!, Goldmine, etc.)
• Microsoft Excel spreadsheets
• A list of prospects on a sheet of paper
Commentary
A pipeline should be constructed to allow you to make your business more
predictable. In so doing you are able to identify whether you are on track with your goals and reasonably estimate your income. The problem with so many
pipelines is that we are so good at lying to ourselves. I put prospects in the
pipeline who are unlikely to close, but I believe I have a shot. I give
prospects greater value for our pipeline than they should reasonably have. In
short, we are the problem with our pipelines. An effective pipeline must
include at least 3 variables to give the prospect a reality check. Additionally, it is important to have an objective third party help you conduct a reality check
on your pipeline each and every week. Cast off what will never happen and
apply conservative estimates to prospects that remains.
7. How much will you invest in your business development in 2010?
43.8% of those surveyed said they planned on spending more than $10,000 on their business development effort in 2010. 25.0% indicated that they would spend between $5000 and $10,000. It is important to note here that several of the advisors I spoke with thought of their marketing budget more in terms of a percentage of revenue. There seemed to be a consensus of opinion that marketing spending should be somewhere between 1.5% and 3% of sales.
Commentary
I believe that marketing spending must fall in line with the rest of your plan. While it is wise to establish a budget early on, many advisors spend this money on marketing ideas they find throughout the year. The next great system. An ad that will make your phone ring off the hook. A “proven” seminar. I am of the opinion that anything you do can have an impact on your business with the right forethought and planning. Some may say, “How can I plan for our marketing effort if I don’t understand how much I have available to spend?” There is no argument here, except to ask, “How can you decide how to spend your marketing dollars if you don’t have the roadmap for sales?” You will discover that the planning I have described to this point will always make your marketing dollars more wisely spent.
8. In a few sentences, please tell us about your marketing failures over the past few years (These are a representative sample of comments):
Economy is bad so difficult to get an appointment with business owners. Not so
much "failures" as the economic conditions.
Getting qualified leads from CPAs, and attorneys
Starts with me. Enough said.
I hired a guy to do marketing for me with e-relationships, got nothing. He altered it and sent out emails from a list I purchased and then followedd up on those that
opened up the email, got nothing. He got a real job.........
Too much getting ready to get ready. Subscribing to programs that I don't really
use or get any results from using them.
Not enough support! Need a coach!
Tried to be too many things to too many different prospective clients, lack of
focus.
Did not keep life insurance pipeline full; working now to rebuild it
Not following up on plans. No real marketing program!
Persistency and consistency. Staying the course is our biggest downfall.
No specific plan. no extra staff added to run the program, failure to follow up!
Cold calling
Getting referrals has not been to successful. Working with CPAs has not been productive. Surprisingly cold calling is exceeding our expectations
Too low of profile in self promotion.
FINAL THOUGHTS:
There is a belief among those surveyed that 2009 was a difficult year, but 2010 can be successful with the right marketing components in place. With this in mind, I would like to suggest the following process to ensure success:
1. Review the past year. Develop a strong understanding of successes and failures. Analyze existing client and new client business. Quantify your behavior.
2. Establish realistic goals and stretch goals
3. Hone your message and be sure that you are able to convey it with real passion.
4. Define your sales process.
5. Construct a four pronged marketing plan. It is not enough to say I will drive referrals or build stronger strategic alliance relationships. Put a plan and numbers behind your chosen marketing activities.
6. Implement a pipeline that actually helps you accurately predict business and adjust behaviors accordingly.
7. Get some accountability . . . a coach.
8. Eliminate the words “hope” and “wish” from your vocabulary. When you build a plan based on numbers and real process, you will find that your goals are achievable.
There are no magic “systems” to buy that will take you where you want to go. You must create a plan and work the plan. If you would like to talk more about this survey or how you might better implement this approach in your own practice, please give me a call.
Rick Schwartz
Expanding Horizons
303-335-0734
1.My business for 2009 was:
41.9% of those surveyed said their business was “somewhat below expectations.” 25.8% said business was “far below expectations.” This means that approximately 2/3 of those surveyed did not achieve their objectives for 2009.
Commentary
To ensure that this experience is not repeated in 2010, I would urge all of you to complete a thorough analysis of last year’s business. Consider your marketing efforts in detail. Review your business successes and failures. Review all client and strategic alliance relationships. Most importantly, do this from a quantitative perspective. This is always the first step Expanding Horizons takes with its clients. Historians say that without understanding the past, we are doomed to repeat its failures. The exercise of review, if done correctly, will help set direction for you in the coming year.
2. Please indicate the percentage of your 2009 new business in each category (nearest 10%):
a. Life Insurance
b. Assets Under Management
c. Qualified Plans
d. Executive Benefits
e. Planning Fees
f. Other
46.9% of those surveyed found that more than 50% of their business came from life insurance. 66.7% of those surveyed found that assets under management account for less than 30% of their business. Just 22% indicated that more than 50% of business came from gathered assets. Qualified Plans, Executive Benefits and Planning Fees represented less than 10% of revenue for approximately ¾ of those responding.
Commentary
Without exception, life insurance and gathered assets played a major role in the business of the vast majority of advisors I spoke with. Those advisors that focused heavily on the life insurance business demonstrated little regret that they had not placed more emphasis on assets under management. However, the advisor that said they drove business through asset gathering often said they wished they had not “dropped the ball” on the life insurance side of their efforts. One conversation with an advisor yielded a very interesting perspective. He said that he always believed that assets under management was the easiest way to build a steady income stream. He indicated that what he failed to realize was that this approach hurt his business during difficult times because he spent too much time calming clients and far too little time driving new business.
3. Please indicate which of the following were part of your marketing plan in 2009 (Check all that apply):
a. Marketing to existing clients
b. Cold marketing
c. Strategic Alliance Marketing
d. Formal Referral Generation Program
e. Networking
f. Social Media
g. Email Marketing
h. Newsletter
i. Seminars
j. Personal Website Lead Generation
100% of those surveyed said that marketing to existing clients was part of their 2009 business development effort. 84.4% identified Strategic Alliance Marketing as a component of their 2009 plan A few conversations here yielded a “fuzzy understanding” of the detailed elements of these two areas of marketing. Some said they saw client reviews as a means of driving business. Others indicated that periodic meetings with CPA’s and Attorneys Were important to their business. Specific plans and their impact on business Were much harder to identify. 46.9% of those surveyed participated in some kind of networking. 40.6% said that cold marketing played a role in their business. 37.5% identified a newsletter as part of their marketing effort. 34.4% conducted seminars to drive new opportunities. Just 28.1% had a formal referral generation program. Less than 22% of respondents considered social media, email marketing and personal website lead generation to have played a role in their business for 2009
Commentary
The feedback here should not be surprising, but still leaves you wondering why so few advisors have built disciplined marketing plans. Marketing to existing clients should mean identified opportunities with their client base. Additionally, there must be a clearly defined campaign to drive appointments and produce results. Strategic alliances are a much tougher issue. “Hope” which permeates most strategic alliance contact is insufficient to drive business. Again, put a marketing plan in place and execute that plan. Networking probably falls in the same category. What was most striking among these numbers can be found in two different areas. First, it is astounding that only 28.1% of advisors actually believe they have a formal referral generation program. I have always believed that advisors that conquer this element of their marketing program will quickly discover how much easier the rest becomes. Conversations with survey participants yielded an unwavering belief in the importance of referral generation, yet less than 1 in 3 advisors actually take this seriously in their marketing approach. Finally, the playing field is changing. Understanding social media, email and web marketing is critically important to the advisor that intends to market in this next decade.
4. Have you completed formal business goal setting for 2010?
50% of survey participants said that had not completed any formal goal setting for the coming year. Since I did not further clarify the term “formal goal setting,” it is likely that some of those that answered in the affirmative have identified an overall number they would like to achieve, but have done little to break expectations down further.
Commentary
The definition of insanity is doing the same thing over and over and expecting a different result. To make 2010 a better year than “below expectations,” it all begins with clearly defined goals. When most people consider goals, they start with the annual sales goal. While that is good, it is not enough. The most successful businesses set daily, weekly, monthly, quarterly and annual goals. There must be goals within each component of the marketing plan. Goal setting serves as markers in the road that allow you to make adjustments to achieve the ultimate objective. Failure to do so makes your business very much hit or miss.
5. Please indicate which of the following are part of your marketing plan in 2010:
a. Marketing to existing clients
b. Cold marketing
c. Strategic Alliance Marketing
d. Formal Referral Generation Program
e. Networking
f. Social Media
g. Email Marketing
h. Newsletter
i. Seminars
j. Personal Website Lead Generation
As with question 3, the vast majority, more than 95% said they would market to existing clients (96.9%) and strategic alliances (93.8%). Networking (65.6%), seminars (59.4%) and joint marketing with another advisor (56.3%) were seen as business driving activities. Newsletters and cold marketing were popular with about 1/3 of respondents. It is interesting to note that social media (25.0%), email marketing (34.4%) and personal website lead generation (21.9%) were of minimal interest to advisors as business driving opportunities.
Commentary
What was that definition of insanity? Oh yes, doing the same thing and expecting a different result. Discussions with advisors have led us to the conclusion that most approach marketing with a “this is how I have always done it” mentality. While I would not argue with the choice of activities, it might be wise to ask, “Why do I choose this marketing approach and what can I do to make it more effective?” Someone told me once that they rarely choose what might be the most effective prospecting activities because “they might take us out of our comfort zone.” This may or may not be the case with most advisors, but it is indeed something to consider.
6. Do you keep a formal “pipeline” for projecting future business?
58.6% of survey respondents said they do keep a pipeline for managing their business. Telephone conversations reveal that there are a variety of pipeline tools in use including:
• CRM solutions which include a pipeline (ACT!, Goldmine, etc.)
• Microsoft Excel spreadsheets
• A list of prospects on a sheet of paper
Commentary
A pipeline should be constructed to allow you to make your business more
predictable. In so doing you are able to identify whether you are on track with your goals and reasonably estimate your income. The problem with so many
pipelines is that we are so good at lying to ourselves. I put prospects in the
pipeline who are unlikely to close, but I believe I have a shot. I give
prospects greater value for our pipeline than they should reasonably have. In
short, we are the problem with our pipelines. An effective pipeline must
include at least 3 variables to give the prospect a reality check. Additionally, it is important to have an objective third party help you conduct a reality check
on your pipeline each and every week. Cast off what will never happen and
apply conservative estimates to prospects that remains.
7. How much will you invest in your business development in 2010?
43.8% of those surveyed said they planned on spending more than $10,000 on their business development effort in 2010. 25.0% indicated that they would spend between $5000 and $10,000. It is important to note here that several of the advisors I spoke with thought of their marketing budget more in terms of a percentage of revenue. There seemed to be a consensus of opinion that marketing spending should be somewhere between 1.5% and 3% of sales.
Commentary
I believe that marketing spending must fall in line with the rest of your plan. While it is wise to establish a budget early on, many advisors spend this money on marketing ideas they find throughout the year. The next great system. An ad that will make your phone ring off the hook. A “proven” seminar. I am of the opinion that anything you do can have an impact on your business with the right forethought and planning. Some may say, “How can I plan for our marketing effort if I don’t understand how much I have available to spend?” There is no argument here, except to ask, “How can you decide how to spend your marketing dollars if you don’t have the roadmap for sales?” You will discover that the planning I have described to this point will always make your marketing dollars more wisely spent.
8. In a few sentences, please tell us about your marketing failures over the past few years (These are a representative sample of comments):
Economy is bad so difficult to get an appointment with business owners. Not so
much "failures" as the economic conditions.
Getting qualified leads from CPAs, and attorneys
Starts with me. Enough said.
I hired a guy to do marketing for me with e-relationships, got nothing. He altered it and sent out emails from a list I purchased and then followedd up on those that
opened up the email, got nothing. He got a real job.........
Too much getting ready to get ready. Subscribing to programs that I don't really
use or get any results from using them.
Not enough support! Need a coach!
Tried to be too many things to too many different prospective clients, lack of
focus.
Did not keep life insurance pipeline full; working now to rebuild it
Not following up on plans. No real marketing program!
Persistency and consistency. Staying the course is our biggest downfall.
No specific plan. no extra staff added to run the program, failure to follow up!
Cold calling
Getting referrals has not been to successful. Working with CPAs has not been productive. Surprisingly cold calling is exceeding our expectations
Too low of profile in self promotion.
FINAL THOUGHTS:
There is a belief among those surveyed that 2009 was a difficult year, but 2010 can be successful with the right marketing components in place. With this in mind, I would like to suggest the following process to ensure success:
1. Review the past year. Develop a strong understanding of successes and failures. Analyze existing client and new client business. Quantify your behavior.
2. Establish realistic goals and stretch goals
3. Hone your message and be sure that you are able to convey it with real passion.
4. Define your sales process.
5. Construct a four pronged marketing plan. It is not enough to say I will drive referrals or build stronger strategic alliance relationships. Put a plan and numbers behind your chosen marketing activities.
6. Implement a pipeline that actually helps you accurately predict business and adjust behaviors accordingly.
7. Get some accountability . . . a coach.
8. Eliminate the words “hope” and “wish” from your vocabulary. When you build a plan based on numbers and real process, you will find that your goals are achievable.
There are no magic “systems” to buy that will take you where you want to go. You must create a plan and work the plan. If you would like to talk more about this survey or how you might better implement this approach in your own practice, please give me a call.
Rick Schwartz
Expanding Horizons
303-335-0734
Monday, November 23, 2009
Integrity For Financial Services Professionals
Integrity is: Doing the right thing because it is the right thing to do.
Integrity is NOT: simply standing by your own ideals just to be rigid.
The dictionary defines integrity as: Adherence to a strict moral or ethical code.
Adherence to strict moral and ethical reasoning is different than sticking by something you just believe in solidly or choose for you desires. Moral and ethical codes have within them a sense that these ideal transcend individualized agendas and instead are codes which apply to a wider group than just yourself.
Why do I bring up integrity? Because all too often we get so focused on our own agenda, our own goals that we forget to take time to verify if we are doing "what is right" for the client.
Becoming wealthy can be quite a noble venture-- especially when the one becoming wealthy plans on using that wealth to assist others. But, gaining wealth my dishonesty, or any other means of compromising ones character, does not justify the end result.
An example of living on target for integrity's sake is : Andrew Carnegie. Andrew Carnegie became America's richest immigrated citizen after years and years of hard work. At age 65 he sold his company and devoted his remaining years to giving away his wealth. He funded the building of over 2,000 libraries within the English speaking world. Carnegie gave away somewhere close to $350 million total to those needing various forms of assistance.
One reason I like Andrew Carnegie: he was honest about hard work. He was once interviewed and asked if he had ever had a clue his life would turn out the way that it had. His response was something to the effect that had he known all that lay before him -- he might never have been able to get up on any given day. BUT you see-- he did get up. And he did what was before him each and everyday, for the right reasons and to the best of his ability.
Again, integrity means doing the right thing simply because it is the right thing to do.
Integrity is NOT: simply standing by your own ideals just to be rigid.
The dictionary defines integrity as: Adherence to a strict moral or ethical code.
Adherence to strict moral and ethical reasoning is different than sticking by something you just believe in solidly or choose for you desires. Moral and ethical codes have within them a sense that these ideal transcend individualized agendas and instead are codes which apply to a wider group than just yourself.
Why do I bring up integrity? Because all too often we get so focused on our own agenda, our own goals that we forget to take time to verify if we are doing "what is right" for the client.
Becoming wealthy can be quite a noble venture-- especially when the one becoming wealthy plans on using that wealth to assist others. But, gaining wealth my dishonesty, or any other means of compromising ones character, does not justify the end result.
An example of living on target for integrity's sake is : Andrew Carnegie. Andrew Carnegie became America's richest immigrated citizen after years and years of hard work. At age 65 he sold his company and devoted his remaining years to giving away his wealth. He funded the building of over 2,000 libraries within the English speaking world. Carnegie gave away somewhere close to $350 million total to those needing various forms of assistance.
One reason I like Andrew Carnegie: he was honest about hard work. He was once interviewed and asked if he had ever had a clue his life would turn out the way that it had. His response was something to the effect that had he known all that lay before him -- he might never have been able to get up on any given day. BUT you see-- he did get up. And he did what was before him each and everyday, for the right reasons and to the best of his ability.
Again, integrity means doing the right thing simply because it is the right thing to do.
Tuesday, October 20, 2009
Great Article from Bob Rhyme
Six secrets to small-biz financial security
How to draw the line between personal and professional
By Bob Rhyme
For a small business owner, it can be hard to draw the line between what’s professional and what’s personal. After all, you’ve used countless hours and resources of your own to build your business. But when the lines between your business and personal finances blur, there can be problems and confusion.
To avoid potential headaches, consider these important points when evaluating your financial position.
Be realistic about all of your finances. As with any financial matter, planning is of the utmost importance. Consider where you want to go in both your professional and personal lives and how you will get there.
You need a plan to grow your business, so set concrete goals for growth through the years. You’ll also need a plan for retirement to ensure that you’ll have the resources to live your desired lifestyle once you finish working. By employing a team of experts who are well versed in both the personal and business side -accountants, attorneys, bankers, financial planners-you will be more likely to realize your goals and maximize value.
Try not to overdo personal expenses at the expense of your business. Many business owners run personal costs through the company as business expenses to reduce taxes on their individual return.
Running the cost of cars, vacation homes or non-business travel expenses through the business can reduce the value of the business by showing less profitability. Remember, businesses are generally valued at a multiple of the company’s net-profit.
Avoid using your business as your personal piggy bank. Just as you should curb the impulse to run personal costs through your company, don’t use the company as a mine for your personal finances. Keep your overall compensation reasonable to make sure your business remains well-capitalized. This will help you grow the business over time and facilitate any future sale.
Think about diversifying your assets. For many business owners, the business is their biggest asset-possibly up to 80-90 percent of their net worth. But it’s important to diversify your assets.
Over time, try to build a portfolio with a good mix of assets by making the most effective use of qualified and non-qualified retirement plans as well as potential use of business real-estate. This will provide more security to your portfolio by reducing the likelihood that all of your proverbial eggs are in one basket.
Share your growth of profits with key people most responsible for that growth. Consider implementing a plan that retains and rewards the key management team for their role in growing your company.
Make sure the benefits in the plan vest at the same time you are prepared to exit the company. Benefits offered to key people can be informally financed with a variety of financial tools including Corporate Owned Life Insurance (COLI).
Use legitimate tax strategies within the business to help your personal finances. You can use a number of options within the business structure to provide for your personal finance needs and those of your employees, which in turn can help attract the best people and grow the company.
In addition to offering a qualified retirement plan, consider adding a non-qualified plan, for your top level people to attract, retain and motivate. Consider using benefits like long term care and life insurance as well. Long term care benefits for yourself, your spouse and key management may offer significant tax advantages due to recent legislation.
If you want to provide key employees life insurance, consider using specifically designed life insurance policies that contain both base premium and additional premiums as a method of accumulating tax-deferred savings for use in retirement.
If you take good care of your business, it can take care of you by providing a sense of freedom and accomplishment, as well as income and a strong asset on your balance sheet. And while your business is tied to your private life, maintaining a balance can be the best way to maximize not only your finances, but your happiness.
This article was prepared by Northwestern Mutual with the cooperation of Bob Rhyme, CLU, ChFC, AEP. Rhyme is a Wealth Management Advisor with Northwestern Mutual-Denver, a subsidiary of The Northwestern Mutual Life Insurance Company, Milwaukee Wisconsin.
How to draw the line between personal and professional
By Bob Rhyme
For a small business owner, it can be hard to draw the line between what’s professional and what’s personal. After all, you’ve used countless hours and resources of your own to build your business. But when the lines between your business and personal finances blur, there can be problems and confusion.
To avoid potential headaches, consider these important points when evaluating your financial position.
Be realistic about all of your finances. As with any financial matter, planning is of the utmost importance. Consider where you want to go in both your professional and personal lives and how you will get there.
You need a plan to grow your business, so set concrete goals for growth through the years. You’ll also need a plan for retirement to ensure that you’ll have the resources to live your desired lifestyle once you finish working. By employing a team of experts who are well versed in both the personal and business side -accountants, attorneys, bankers, financial planners-you will be more likely to realize your goals and maximize value.
Try not to overdo personal expenses at the expense of your business. Many business owners run personal costs through the company as business expenses to reduce taxes on their individual return.
Running the cost of cars, vacation homes or non-business travel expenses through the business can reduce the value of the business by showing less profitability. Remember, businesses are generally valued at a multiple of the company’s net-profit.
Avoid using your business as your personal piggy bank. Just as you should curb the impulse to run personal costs through your company, don’t use the company as a mine for your personal finances. Keep your overall compensation reasonable to make sure your business remains well-capitalized. This will help you grow the business over time and facilitate any future sale.
Think about diversifying your assets. For many business owners, the business is their biggest asset-possibly up to 80-90 percent of their net worth. But it’s important to diversify your assets.
Over time, try to build a portfolio with a good mix of assets by making the most effective use of qualified and non-qualified retirement plans as well as potential use of business real-estate. This will provide more security to your portfolio by reducing the likelihood that all of your proverbial eggs are in one basket.
Share your growth of profits with key people most responsible for that growth. Consider implementing a plan that retains and rewards the key management team for their role in growing your company.
Make sure the benefits in the plan vest at the same time you are prepared to exit the company. Benefits offered to key people can be informally financed with a variety of financial tools including Corporate Owned Life Insurance (COLI).
Use legitimate tax strategies within the business to help your personal finances. You can use a number of options within the business structure to provide for your personal finance needs and those of your employees, which in turn can help attract the best people and grow the company.
In addition to offering a qualified retirement plan, consider adding a non-qualified plan, for your top level people to attract, retain and motivate. Consider using benefits like long term care and life insurance as well. Long term care benefits for yourself, your spouse and key management may offer significant tax advantages due to recent legislation.
If you want to provide key employees life insurance, consider using specifically designed life insurance policies that contain both base premium and additional premiums as a method of accumulating tax-deferred savings for use in retirement.
If you take good care of your business, it can take care of you by providing a sense of freedom and accomplishment, as well as income and a strong asset on your balance sheet. And while your business is tied to your private life, maintaining a balance can be the best way to maximize not only your finances, but your happiness.
This article was prepared by Northwestern Mutual with the cooperation of Bob Rhyme, CLU, ChFC, AEP. Rhyme is a Wealth Management Advisor with Northwestern Mutual-Denver, a subsidiary of The Northwestern Mutual Life Insurance Company, Milwaukee Wisconsin.
Monday, October 5, 2009
Defining Your Prospecting System
Step 1: ____________________
This is usually your first opportunity to introduce what you do and schedule time to learn more about your prospective client. This will likely be a brief meeting where you present a basic introduction to your services and request an opportunity to learn about your prospect’s needs.
Step 1a: ___________________
Many people choose to add an intermediary step here. This is not quite “fact finding,” but more of a get to know you session, arriving at some acknowledgement of PAIN. More simply, the prospect indicates that there is indeed a problem and they are interested in allowing you to explore further via a more detailed discovery meeting.
Step 2: ____________________
The “All About Your Prospect” meeting. This meeting is often referred to as “Discovery” or “Fact Finding.” The purpose of this meeting is to determine whether you, your company and your services are right for the prospective client. You determine whether the prospective client is right for you and your business. If right for each other, the only remaining question is what if any services you might provide.
Step 3: ____________________
Once you have gathered sufficient data to determine the right product or service to present, your next step is often to prepare and present the solution you believe will achieve your prospect’s desired goals. This meeting is about getting a decision.
Step 4: ____________________
The prospect has acknowledged the problem. You have presented a solution and they agree that it is the right solution. You are engaged. Now you must deliver. This step is often called implementation. It is the step that is necessary if you are going to get paid.
This is usually your first opportunity to introduce what you do and schedule time to learn more about your prospective client. This will likely be a brief meeting where you present a basic introduction to your services and request an opportunity to learn about your prospect’s needs.
Step 1a: ___________________
Many people choose to add an intermediary step here. This is not quite “fact finding,” but more of a get to know you session, arriving at some acknowledgement of PAIN. More simply, the prospect indicates that there is indeed a problem and they are interested in allowing you to explore further via a more detailed discovery meeting.
Step 2: ____________________
The “All About Your Prospect” meeting. This meeting is often referred to as “Discovery” or “Fact Finding.” The purpose of this meeting is to determine whether you, your company and your services are right for the prospective client. You determine whether the prospective client is right for you and your business. If right for each other, the only remaining question is what if any services you might provide.
Step 3: ____________________
Once you have gathered sufficient data to determine the right product or service to present, your next step is often to prepare and present the solution you believe will achieve your prospect’s desired goals. This meeting is about getting a decision.
Step 4: ____________________
The prospect has acknowledged the problem. You have presented a solution and they agree that it is the right solution. You are engaged. Now you must deliver. This step is often called implementation. It is the step that is necessary if you are going to get paid.
Thursday, October 1, 2009
You Can Predict Your Sales Success!
The most difficult thing about our business is predicting the future. How much money will I make this week, this month or this year? How many prospects do I need in my “pipeline” to ensure that I achieve my financial goals? Where am I in the process with each prospect? Creating and managing a pipeline is integral to your continued success.
For those of you that use a CRM (contact management software), you probably have access to a pipeline management tool that will keep you on track. The downside of many CRM’s is that they make this process far more complicated than necessary. Let’s take a moment and talk about the important elements of an effective pipeline:
1. An effective pipeline allows you to define your sales process. Every business has a unique sales process:
a. Initial call
b. Fact finding
c. Sales presentation
d. Follow up
e. Close
Your process might look like this or have some variation. Take a moment and review your successful sales from start to finish. Identify the steps that got the business closed most quickly. Put them on paper.
2. Assign percentages to each step based on the likelihood you will close the business. An initial call might only provide you with a 10% likelihood that you will close the business. While I recognize that this might only be a guess on your part, it is a starting place.
3. Ensure that your pipeline includes at least three variables. Because a pipeline is initially an estimate of your likely sales success, it is important that you have variables that will provide a reality check. These variables should include things like estimated sale, estimated time to close and estimated percent likely hood of close. When you provide these kinds of estimates, you are making your pipeline more “real” or conservative. Conservative is good! It allows you to believe your numbers. Believing your numbers is a big step toward meeting your sales goals.
4. Your pipeline should provide you with data that you can use. There should be a calculation that allows you to see the total real value of your pipeline. This allows you to see the possibilities. Your pipeline should include a metric that allows you to see what your pipeline means to your business each week. In other words, my pipeline is worth $x.xx this week. In other words this is a strong estimate of how much money you will make on average each week over the next few months. Your pipeline should also provide a calculation that allows you to predict your sales over the next year based on the prospects currently in your pipeline.
5. It must be easy to move closed sales out of your pipeline and add new business to it. This information can also be very valuable. Understanding how long it takes to close business, what percentage of your pipeline does not close, and understanding how accurate your estimates of the total sale will allow you to finesse the percentages assigned to each sales step. The end result is an even more accurate estimate of your success week in and week out.
One word of caution, be conservative! If you lie to yourself about the business that is real in your pipeline, it will serve no purpose other than making busy work for you. As questions like:
1. Does this prospect belong in my email?
2. Is this estimate of the total sale too aggressive?
3. Do they really belong in this step of my sales cycle or am I dreaming?
4. Do I think it will really close in this amount of time?
Be tough on yourself and the result will be a very predictable business. I you would like us to customize a pipeline for your business, give me a call.
For those of you that use a CRM (contact management software), you probably have access to a pipeline management tool that will keep you on track. The downside of many CRM’s is that they make this process far more complicated than necessary. Let’s take a moment and talk about the important elements of an effective pipeline:
1. An effective pipeline allows you to define your sales process. Every business has a unique sales process:
a. Initial call
b. Fact finding
c. Sales presentation
d. Follow up
e. Close
Your process might look like this or have some variation. Take a moment and review your successful sales from start to finish. Identify the steps that got the business closed most quickly. Put them on paper.
2. Assign percentages to each step based on the likelihood you will close the business. An initial call might only provide you with a 10% likelihood that you will close the business. While I recognize that this might only be a guess on your part, it is a starting place.
3. Ensure that your pipeline includes at least three variables. Because a pipeline is initially an estimate of your likely sales success, it is important that you have variables that will provide a reality check. These variables should include things like estimated sale, estimated time to close and estimated percent likely hood of close. When you provide these kinds of estimates, you are making your pipeline more “real” or conservative. Conservative is good! It allows you to believe your numbers. Believing your numbers is a big step toward meeting your sales goals.
4. Your pipeline should provide you with data that you can use. There should be a calculation that allows you to see the total real value of your pipeline. This allows you to see the possibilities. Your pipeline should include a metric that allows you to see what your pipeline means to your business each week. In other words, my pipeline is worth $x.xx this week. In other words this is a strong estimate of how much money you will make on average each week over the next few months. Your pipeline should also provide a calculation that allows you to predict your sales over the next year based on the prospects currently in your pipeline.
5. It must be easy to move closed sales out of your pipeline and add new business to it. This information can also be very valuable. Understanding how long it takes to close business, what percentage of your pipeline does not close, and understanding how accurate your estimates of the total sale will allow you to finesse the percentages assigned to each sales step. The end result is an even more accurate estimate of your success week in and week out.
One word of caution, be conservative! If you lie to yourself about the business that is real in your pipeline, it will serve no purpose other than making busy work for you. As questions like:
1. Does this prospect belong in my email?
2. Is this estimate of the total sale too aggressive?
3. Do they really belong in this step of my sales cycle or am I dreaming?
4. Do I think it will really close in this amount of time?
Be tough on yourself and the result will be a very predictable business. I you would like us to customize a pipeline for your business, give me a call.
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