BachrachBlog

Have you noticed that some of the things that are good for you aren’t necessarily pleasant? Not everyone loves to exercise. Many people would prefer to not eat well. (It might surprise you to discover my 3 favorite food groups are In-N-Out burgers, pizza, and Taco Bell.) I don’t have personal experience raising children, but I’m going to go out on a limb and guess that it would be easier to be your kids’ buddy than to be a good parent. Some of things you have to do in order to earn the living you want may not be pleasant either.

It might be one of the most challenging things for humans to deal with and, certainly, one of the comments that I hear on a regular basis from the advisors we train and coach. “I’m failing in ___________ area because it’s just not comfortable or not something I enjoy.”

What do you say to a client when something their goals require is unpleasant or uncomfortable? “I just don’t find writing those insurance premium checks much fun.” “Do we really have to save that much every month? It would be more fun to spend it all now.” Can you just skip these things and get the same results? What do you say to a child about eating their vegetables or doing their homework when they don’t feel like it? Can you just skip vegetables and homework and have your life turn out just fine? What do you say to a friend or family member about exercising, eating well, and generally taking good care of their health? What if it’s just not fun or comfortable or enjoyable or pleasant?

You’ve heard the saying you are only as strong as your weakest link. That’s definitely true for running a business. You are the CEO of your Financial Planning business and not everything that makes your business successful will be pleasant.

In Dr. Scott Peck’s landmark book, The Road Less Traveled, he begins the first chapter with this, “Life is difficult. This is a great truth, one of the greatest truths. It is a great truth because once we truly see this truth, we transcend it. Once we truly know that life is difficult – once we truly understand and accept it – then life is no longer difficult. Because once it is accepted, the fact that life is difficult no longer matters.”

Read that paragraph as many times as you need to until you really get it.

Where do most businesses break down? That’s right, client acquisition. Why? Lack of a good system? Inconsistent execution? Weak people skills? All three?

What is the best method for acquiring new Ideal Clients? According to those people you would like to acquire, it’s by referral. Yet most advisors manage to get through their entire careers knowing this to be true, but never approaching mastery of this basic skill. Why? Back to square one: it’s not comfortable or enjoyable. Vegetables? Exercise? Homework? Insurance premiums? Saving? Bummer.

Life is difficult. And once you accept that…

Asking for referrals, making follow-up calls, conducting phone conversations, and scheduling appointments may be difficult for you. Once you accept this truth it no longer matters. It becomes something you just do. And if you’re not willing to do what is difficult in your life then how do you earn the right to advise others to do what’s difficult in their lives? Let your integrity be your inspiration for doing the things in your life that you find difficult so you earn the right to give advice to others to do the things they need to do that might be difficult for them. This is what it means to be a Trusted Advisor.

“Too many people see change as what other people need to do” – David Zach

“Daddy or Mommy, if you don’t ask for referrals and make your calls, do I have to eat my vegetables and do my homework?” Seems silly from this point of view, doesn’t it?

The bottom line is that you have to let go of the fantasy that every element of running your business is going to be enjoyable. If comfort is your goal then success in business is not in your future. There is no silver bullet. Some aspects of being a business owner just suck. Deal with it. Some things are just not fun and the time and effort spent worrying about is unproductive. Put on your big boy or big girl pants and get on with the work your goals require to achieve them. Getting results is fun.

It’s become a popular idea in recent years that you should focus on your strengths and delegate your weaknesses. And this is a great idea, where it’s possible. And what’s possible is defined by your goals, not by your likes and dislikes. When building your Ideal Client Community you simply can’t delegate the relationship-building and relationship-management part. Asking for referrals and following-up with the people to whom you are referred is your job.

If you were single and a friend referred you to someone for a date, you wouldn’t have your secretary call to make the date, would you? If you would, this could explain why you’re single. There are certain calls YOU have to make. Following up on referrals is one of them.

Over 21 years of coaching and training Financial Advisors, there is another interesting dynamic I witness. I call it the consensus-versus-wisdom phenomenon. This is well-illustrated by the group of fat people who get together and decide that exercise is bullshit and agree that a trip to the all-you-can-eat buffet is a better use of time. While they all may agree, creating consensus. Their choice clearly isn’t wise, presuming being healthy matters to them. Obviously silly when I put it that way, but what about when a group of financial advisors have a “meeting of the minds” and decide the method must be flawed because they aren’t doing the work required to be successful? Don’t blame the method for poor execution.

The bottom line is that the most client-centered, cost-effective, time-efficient, and results-producing way to build an Ideal Client Community is by referral. No matter how uncomfortable you find it to be or how many other advisors you can find who are equally inept at building their business by referral, the fact remains: the most client-centered, cost-effective, time-efficient, and results-producing way to build an Ideal Client Community is by referral.

My advice: suck it up, make a REAL commitment to build your Ideal Client Community by referral only, get good at it, and keep doing it until you’re done. The positive feelings from the results will far outweigh any unpleasantness along the path.

It’s a great time to be a Financial Advisor!

I sometimes hear people refer to continuous learning and continuous improvement as though they are the same thing. They are not the same.

Can you learn without improving? Certainly. Can you improve without learning something new? Definitely. Does all learning create improvement? No.

Before you read that next book or attend another webinar or seminar or conference, ask yourself a couple of important questions: “Am I doing this to learn or to improve?” “What will I be able to do to be better as a result of reading this book or attending this webinar or seminar or conference?” “How quickly will I be able to implement what I learn to produce results in one or more key areas of my personal or professional life?”

If we’ve done your Success Road Map®, you can give it the Success Road Map check with questions like: “How will this help me bridge the gap between where I am now and where I want to be with one or more of my success metrics?” “How will this help me achieve me goals?” “How will this impact the fulfillment of my values?” (Go to www.baivbfp.com to learn more about taking advantage of your complimentary Success Road Map® experience.)

Professionals at the highest levels are masters at refining what they know to approach perfection at their craft. Through diligent practice and repetition they become virtuosos. While this term is normally used to describe musicians and singers who operate at the highest levels of technical proficiency, could it apply to you as a Financial Advisor?

In Music in the Western World by Piero Weiss and Richard Taruskin, we find the following definition of virtuoso: “…a virtuoso was, originally, a highly accomplished musician, but by the nineteenth century the term had become restricted to performers, both vocal and instrumental, whose technical accomplishments were so pronounced as to dazzle the public.”

Wouldn’t it be great to be dazzling at the key elements for building your community of Ideal Clients? Ie: Conducting a brilliant initial client interview as well as effectively asking for and receiving referrals. Also, being good enough on the phone, when you make your follow up calls to your referrals, so they call you back, and when you do speak with them you are articulate and compelling. Maybe you have some learning to do. Once you learn how, then continuous improvement applies until you are producing the desired results.

My advice: Learn less. Apply more. Continuously IMPROVE. Get great results. Repeat.

Yes. While I don’t believe there are any secrets to success, there are a couple of simple formulas that can serve as good reminders of what’s necessary to be successful. One of them is Effort x Effectiveness = Results. Simply put, you have to put out a high enough volume of work at a high enough degree of effectiveness in order to achieve your goals. If you feel like you are working hard, but not getting the results you want then you either are not being effective or the amount of time that has elapsed has not yet been enough for the desired results to occur. If you believe you are effective and not achieving results you probably just need to look at your calendar and you will likely discover you are not investing enough time in results-producing activities. You may be busy, but success comes from being busy doing results-producing activities. These two things go hand-in-hand, effort and effectiveness, because you tend to become more effective at those things you do frequently and consistently. This is especially true of the activities required to be a successful financial advisor building an Ideal Client Community. Ie: Serving clients, getting referrals, following-up with referrals on the phone, and conducting the initial client interviews that lead to referrals becoming clients.

A formula which I developed that may help you be more productive is Success = words on-purpose + time on-purpose. My experience is that successful people live and work “on-purpose.” They are good with words and manage their time well. Being on-purpose with time means that you plan your work and you work your plan. The most productive time-planning is when you know your priorities, place them on your calendar as appointments with yourself and others, and honor your calendar. Consider how seldom an unscheduled interruption is more productive than what you would have been doing if you had planned that time to do something highly productive on-purpose.

Far less productive is working from a to-do list. And the least productive way to manage your time is to go work with a mostly blank calendar and attempt to stay focused on the most important tasks throughout the day. Given that life, business, and the financial services industry in particular are distraction-producing machines it is difficult to be successful without managing your time and high-payoff-activities on-purpose.

Can you think of anything in your personal or professional life that would not be enhanced by managing your time and priorities on-purpose?

What about words on-purpose? I sum this up as knowing what to say, how to say it, and when to say it. You could call it being articulate. The financial services profession is all about human interactions. Interacting with your clients, referrals as prospective clients, staff, subject matter experts who help you serve your clients, your company leaders and support personnel. It means talking with people. It means asking good questions. It means being a good listener. It means connecting what people tell you about their needs, wants, goals, and values with your value proposition. You will be most productive when scripted. At the very least you must have talking points you can instantly and effectively articulate. Who wants to trust their financial future to someone who stumbles over their words? It doesn’t matter that you are smart if you don’t sound smart. Politics aside, I find it interesting that President Barack Obama has gotten flack for using the teleprompter and he and his staff get criticized for being on the same page with their talking points. You can laugh if you want, but knowing what to say, how to say it, and when to say propelled him into the Oval Office. What might this do for you?

Can you think of anything in your personal or professional life that would not be enhanced by being able to choose and deliver your words on-purpose?

The bottom line is that success is rarely, if ever, an accident. Successful people use their time and words on-purpose.

Your success has more to do with your people skills than your technical expertise. Of course, it’s a good idea to have both. But in today’s new reality, it’s your people skills that set you apart.

These are the skills that enhance your connection with your existing clients, because you demonstrate empathy for the pain they may be experiencing as they make the mental and emotional transition to their new economic reality. These are the skills that allow you to communicate your advice so it’s acted on. It’s your people skills that help you help your clients adjust their goals or their time horizons. These are the skills that help you engage people in a way that increases the chance that they’ll become your next ideal clients.

How do you develop your people skills if you’re new to the business, or polish them up if you’ve allowed them to get a bit rusty? Here are 3 key things:

1. Ask good questions.

2. Listen with empathy.

3. And when it’s your turn to talk, be able to articulate your ideas and your advice with conviction so your

clients and your prospects respond positively.

Bill Bachrach, as appearing in www.horsesmouth.com 7/31/09

Editorial Note: “Your success has more to do with your people skills than your technical expertise.” It took me many years of experience to learn this truth. –Nancy Lininger, The Consortium

This was excerpted from Nancy Lininger’s Compliance E-News™, published by The Consortium® (Aug. 29, 2009)

As a result of me scheduling an appointment with my billionaire neighbor to ask questions and gain some knowledge, insights, and wisdom to become a better CEO, here are some ideas you might apply in your business. I’m gladly sharing with you some of the nuggets he shared with me that could benefit you. You may find these ideas useful as you decide your course of action during these challenging times.

The 5 most significant, transferrable ideas for being successful are:

1.      A desire not to be controlled by circumstances.

2.      An unwavering determination that nothing was going to prevent me from accomplishing my goals.

3.      The determination to increase my knowledge through study and experience.

4.      Continuous effort.

5.      A passion for helping people.

When he talked about a lifetime dedicated to helping people he got tears in his eyes. His passion for helping people was palpable.

How do you rate yourself in each of the above categories?

What about the rest of your team?

How strong is your desire to NOT be controlled by circumstances? Now is a great time to put that desire into action.

How would you describe your determination to accomplish your goals? Unwavering?

What is the level of your commitment to increase your knowledge through study and experience? Is that just something you do when times are “good?”

Continuous effort? For example, are you continuing to ask for referrals, make contact with new people, and add new Ideal Clients during this unprecedented opportunity to build your business? Or are you justifying your lack of continuous client acquisition effort because you’re too busy holding your existing clients’ hands?

Do you care so much about helping people that you get emotional about it?

Your ability to survive, and even thrive, during challenging times has nothing to do with your technical ability or your tenure. Lots of smart, experienced financial advisors are either considering leaving the business or are squandering this unprecedented opportunity to add new Ideal Clients to their practices.

The single word that exemplifies how my neighbor became a billionaire is DETERMINATION. His “unwavering” comment was also a clue to what it really takes to thrive in any economic environment.

The legendary boxer, Joe Louis, is famous for saying, “everybody wants to go to heaven but nobody is willing to die.” And that’s a good lead in to the other big lesson that was reinforced for me during our 3-hour conversation: there is no “silver bullet.” His success was due to applying fundamental principles over time. He was simply willing to do, consistently and with determination, what most others knew to be true, but just didn’t do it.

It’s a great time to be a Financial Advisor!