BachrachBlog

Have you ever wondered why some financial advisors have the kind of businesses they want, while others don’t? It’s really no big mystery. They simply took three steps back and made the important choices that led them to their current success.

To create the business you want, start by taking the first step back: Decide what kind of life you want. Do you know exactly how you want to spend the next 10, 20, or 30 years? When you decide how you want your life to look and why, you’re ready to take the second step and create a financial game plan.

It almost goes without saying that there’s a financial component involved in creating the life you want. Therefore, step two is to figure out how much money you need to live the life you want. You also need to consider the time component: How much time are you willing to invest today in order to earn for your future? Most people are willing to sacrifice some quality of life today so they can achieve a better quality of life in the future, but if that sacrifice gets too big, then their willingness to continue eventually diminishes.

By figuring out how much money you need and how much time you’re willing to work, you’re ready for step three: figuring out how to invest that time. When you know what you want your life to look like and how you’re willing to invest your time, you’ll quickly realize that you don’t have any time to waste.

The good news is that what produces a simpler and better life for you also creates better results and value for your clients. Our experience shows that clients are much better served when you organize a “deliverables team” that is dedicated to making sure your clients achieve their goals regardless of what happens in the market, the economy, or the world. Whether you’re 22 years old and a brand-new advisor, or 65 years old with decades of experience, your personal time in the business will never match the collective wisdom and experience you can put to bear toward your client’s best interest when you assemble a team of competent, professional, trustworthy money managers, financial plan writers, insurance experts, tax professionals, attorneys, etc., to work for you and your clients.

Don’t delude yourself into thinking, “Once I get my arms around all this stuff, my business will really take off.” All that stuff is impossible to “get your arms around.” It’s simply too much stuff, coming from too many sources, and there’s simply not enough time. You have too many clients and too many variables to ever be able to manage in the finite amount of time that you can dedicate to your business without letting the rest of your life falling apart. Do you know why you feel like there’s never enough time? Because there isn’t enough time to run the business you have or are trying to build.

Over the years, 20+ now, I’ve studied a lot, taught a lot, and written a lot about building high-trust client relationships. Lately I’ve found myself saying to our core group of committed advisors who implement the Values-Based Financial Planning™ turn-key business model that, “trust is not the objective, trust is a by-product of the other things that you do, like your behavior, your communication, and the quality of your work.”

 I’ve come to believe that if gaining your clients trust is your objective then the focus is on the wrong place: you. When, of course, the focus should be on them. When your goal is to establish trust it might be to further your agenda, like, “I have to get them to trust me… so they hire me… so they give me assets… so they buy my product or idea, etc, etc. etc.”

Consider this point of view instead:  “I am going to show up relaxed, be authentic, behave with an extremely high level of professionalism, skillfully execute my process for creating a great client interview experience or progress meeting experience, ask great questions, listen with empathy, be well-organized , be respectful of their time by not bragging about myself or my company or boring them with over-explanations of financial concepts and ideas, and be selective about only letting the truly right-fit people join my community of Ideal Clients. And if, in the process of behaving this way, they trust me and hire me, fine. If not, that’s okay too.”

Some advisors try to force things to happen with everyone they meet by using sales, influence, or persuasion tactics to “close the deal.” This is akin to a woman desperately seeking a husband because her “biological clock is ticking” instead of  looking for the right partner with similar goals and values who is best suited for the two them to create a life together of happiness and fulfillment.

I’m in the business of helping successful advisors double-quadruple their business revenue in 4 years or less, so what I’m writing about here is not purely altruistic. You may be concerned that “relaxing” or abandoning a more intense sales focus will diminish your results. Actually, the contrary is true. Which “way of being” do you think is more likely to attract successful people to want to become your clients, the relaxed Trusted Advisor or the intense salesperson? Relaxed doesn’t mean wishy-washy or lacking in passion for helping people make smart choices about their money. It means that you don’t show up with what we used to call “commission breath.”

Think of each client relationship more like a professional marriage. The objectives are for them to have the best possible experience, whether they become a client or not, and for only the “right-fits” to become clients.

Here are a few time-tested ideas for behaving in ways that create the by-product of trust and a few thoughts about not-to-do behaviors that erode trust.

1         Look for “right fit” people to join your client community versus a “they have money therefore I want them” mentality. Create an Ideal Client Profile where the personality element of the people you meet is equally important to the money element in order for them to earn an invitation to join your client community. Notice the difference in how it feels to think of inviting people to do business with you versus “closing the deal.”

2          Ask good questions.

1. Values (What’s important about money to you?)
2. Goals (What are your tangible goals that require money and planning to achieve? How much do you want to have for that goal? By when? What are two or three words that describe what you are thinking and feeling once you have achieved that goal?)
3. Does the idea of having a comprehensive financial plan which gives you a higher probability of achieving your goals and fulfilling your values appeal to you?
4. Would you like to join our client community and have us do this work for you?

3         Listen with empathy. The tendency, especially during an initial client interview with people you may have never met face-to-face, is to think more about what you are going to say next while they are answering your questions. When you do this you don’t really hear what they said, therefore it’s hard to be empathetic to things you weren’t fully present, mentally, to hear. The solution is to have your questions memorized so you don’t have to think about what you are going to ask next, thus allowing you to be fully present and a much more empathic listener.

4         Record your client meetings, especially the initial client interview. I’ve written in this magazine before about recording client meetings and to save you the trouble of searching back issues here’s a script for introducing the recorder.  “I appreciate the investment of time and effort you made to be here today. The fact that you have done so tells me that you must be serious about your money, is that true? (pause for answer) You’ll notice that I’ll ask many relevant questions, take copious notes, and I also record the meeting. (refer to the recorder and pause) The reason I record is because I’m very thorough. (pause) Do you know how you can watch a movie a second or third time and see things you missed the first time?” (Nice long pause for them to respond.) “Well giving you advice about your money so you can achieve your goals is obviously much more important than a movie, so I want to make sure our advice is right for you. If we choose to work together, I’ll listen to this recording at least one more time to make sure to get it right. ” (pause) Ask your first question. (See “ask good questions” above)

5         Give advice with conviction. Salespeople tend to offer alternatives and let the prospect or client choose. Trusted Advisors gather all the information they need, consult with other experts where appropriate, and give the best advice for the client… with conviction. There may be more than one way to achieve a goal, but there is only one best way. Find the best way and give advice with conviction.

6         Tell the truth even if doing so jeopardizes the relationship.  Serious and successful people don’t want to pay good money for a rubber-stamp, yes-person kissing their butts and telling them only what they want to hear. It’s your job to tell the truth, especially when it’s what they need to hear and not what they want to hear.

7         Avoid direct statements or indirect implications that you can do the impossible. Ie: beat the market. The primary determinant of a person achieving their goals is their own behavior. Your job is much more about managing your clients’ choices and actions than it is about managing their money. The bottom line is that there is no guarantee of anything. The best you can do is to help people get their entire financial house in order, make the best choices possible at the time, and be in the strongest position possible to adapt to whatever non-controllable events occur.  The less you play the predict-the-future game the more credible you are.

8         Be inspiring. Focus on helping clients and prospective clients create a compelling vision for their future and become their bridge to make it happen. Being a future vision creator is much more trust-building than being a problem-solver.

9         Avoid the use of the old-school greed appeal: “work with me and you’ll get a better return because our guru has a better beat the market black box.”

10     Avoid the use of the old-school fear tactic: “buy gold (or whatever) now because the big deficits and weak dollar mean inevitable inflation coming to erode your buying power! You could outlive your money and end up a burden to your family, living off community hand-outs, or on the government dole. How would that make you feel?”

11     Be a comprehensive financial professional. It’s interesting that most financial advisors claim to be comprehensive. But what does that really mean? What is “comprehensive financial services?” At the very least, comprehensive implies “everything.” Do you really help your clients take care of everything related to their money? How many things is that? I know of one advisor who has done such a great job of defining comprehensive financial services that many advisors look to him for leadership on this subject. Check out www.trustedadvisortoolkit.com for the best information I know of about delivering truly comprehensive financial services.

12     Put the client first.  Duh. I know. It sounds almost silly and certainly cliché. And yet there is a lot of discussion and controversy by the regulators and industry leaders about the fiduciary standard. Am I the only one who finds it absurd that legislation is necessary for our industry to step up and adopt a fiduciary standard? Isn’t that simply always, in all situations, and under all circumstances putting your client’s needs ahead of your own? Isn’t that what you already do? Do you really need a law about that? Apparently the industry does. The good news is that your competition needs somebody else to define integrity for them. And speaking of integrity…

13     Have no conflicts of interest. Notice I didn’t say “disclose conflicts of interest.” Run your business without any conflicts of interest. Why should there be any conflicts of interest to disclose?

Keep in mind that these are not “tactics” to build trust. These are the powerful behaviors of  financial professionals who are very good at what they do and who genuinely care about helping people get their financial house in order, achieve their goals, and fulfill their values.  By behaving at this very high level of professionalism trust is the by-product of that behavior.

The bottom line is that you can’t “technique” your way to trust. You earn it by who you are and what you do.

Besides owning and operating a training and coaching company for financial advisors for over 21 years, I have been a regular consumer of personal and professional development for almost 30 years. In that time I have developed a point of view about how to choose a program and / or a coach.  I was recently asked to comment about how I would advise a friend to make a good choice in this area. Here’s what I recommend.

First of all, let’s examine some distinctions between training and coaching.

Financial advisors tend to participate in training programs, some with support. The support element is often referred to as coaching, largely because coaching has become cool. As in, “Tiger Woods has a coach and so do I.” Because the term coaching has become more fashionable, what are actually training programs are frequently called coaching programs.

Training programs have pre-determined content, processes, and systems which are taught. The participants participate because they want to learn and implement these methods, usually created by a subject matter expert. Over time, the subject matter expert builds out their curriculum to be more comprehensive and develops a team of people to help them run the company, attract new clients / students, and deliver the training and coaching.

Some training programs have a coaching element and some don’t. What matters is that you are getting good content and good coaching so that your results improve.

How do you decide which program is right for you? Here are some questions and ideas to consider in order to make a good decision.

1. If you invest the money they tell you to invest and do what they tell you to do, will you get somewhere you want to be in a reasonable time-frame? In other words, is there a clear and compelling description of where you will you be in, say, 4 years if you actually do everything they teach and coach you to do? If so, is that somewhere you want to be?

2. Does the program last forever?  Some programs brag about how long their participants stay in the program.  Personally, I’m a bit leery of programs who want you to participate for life. That said, I don’t think you ever out-grow self-improvement.  However, as you grow, develop, and achieve your goals it’s likely that you will need a different type of training program or coach to help you grow and develop in other areas of your life.

3. Is the program content specific or general?  If you want to build your business, work with a company that specializes in that.

4. Expensive isn’t necessarily better, but cheap is always a red flag for me. In the area of training and coaching, you do tend to get what you pay for.  Your greatest asset may well be your undeveloped potential. Don’t be skimpy in tapping your potential.

5. Can these people at this company really get you there?  How well do they interview you before they begin “pitching” you their program?   Does their offering seem plausible or too good to be true?   Is there a step-by-step game plan and someone to help you implement? How do you get your questions answered and get supported?

6. While you should see some tangible and measureable results in the first month or two, remember there is no “silver bullet.” My observation is that many advisors jump from program to program looking for something that doesn’t exist:  an easy and inexpensive way to build a highly successful and sustainable financial services business.  Are you being realistic in your expectations?  Will you do whatever it takes to achieve your goals?

1. Are you ready for serious coaching?
2. Another observation, as both a serious student and serious trainer / coach, is that almost every program works. I may have philosophical differences or even ethical concerns with some of the training and coaching programs in our industry, but they all produce some or all of the results they promise, IF the advisor actually implements. As I mentioned earlier, many advisors don’t follow through well.  Thomas Edison once said, “Many of life’s failures are people who did not realize how close they were to success when they gave up.”
3. This is sometimes the fault of the advisor because some advisors are simply not coachable. And this is also sometimes the fault of the training company and / or coach because they aren’t holding advisors accountable to implement.
4. Why would a person who is not coachable enroll in a coaching program? I don’t know, but it happens more frequently than you might think.  And who wants to admit they’re not coachable?
   1. Is there real accountability to implement?
   2. Since the biggest obstacle to our success is always ourselves, do you have a coach who is really, truly willing to hold you accountable to the activities necessary to achieve your goals?
   3. Is there enough “tough love” to keep you on track to do the work required or is the “coach” really a salesperson who is unwilling to risk losing your revenue stream so they hold back in what they say to you?
   4. This can be a fine line, but you really want a coach who will tell you the truth and hold you accountable to do the work YOUR goals require to achieve them, not withhold the truth you need to hear that might inspire you and jolt you into action to do what needs to be done, even if it’s uncomfortable.  Norman Vincent Peale, the author of The Power of Positive Thinking said, “Most people would rather be ruined with praise than saved by criticism.” If your coach is just blowing smoke it should be obvious. You want someone who helps you move outside your comfort zone because it’s not possible to be successful and be comfortable. You want, and probably need, a coach who combines inspiration and “tough love” so you stay on track.
      1. Industry specific?
      2. That’s my preference, but there are  good programs and coaches that are not financial services industry specific.  The argument for non-industry specific is that you can learn things from people in a variety of industries. Unfortunately, what you learn from other industries can be very mass-marketing oriented and a  more product-centric sales approach. I don’t believe that financial services should be “sold” like copy machines, for example. Another drawback is that you can end up investing your time and money to educate your coach about your business.
         1. How do you begin?
         2. You’re probably already aware of the better known and effective coaching programs in the financial services industry and have colleagues in those programs.  If not, they are not hard to find.
         3. You might first want to go to their websites, read their value propositions, and determine which resonate with you.
         4. Call and ask a question like, “I’m considering enrolling in a training / coaching program. How will you help me make a good decision about whether or not your program is right for me?” What happens next will speak volumes and help you make a good decision. Is there even a process to help you make a good decision or just a sales pitch? Their process should be a reflection of what they are teaching / coaching. If it’s not, what does this say about the program? In my opinion, you want to do business with companies and people who walk their talk.
         5. Do they ask good questions and really listen?
         6. Do you feel like the individual you are speaking with truly cares about you as a person and not just as a prospect?
         7. When it is time to “present” their program do they do so in the context of your goals and your values or does it feel like a generic features and benefits presentation to you?
         8. Is the person you are talking to the person you are going to work with to help you implement the program if you ultimately enroll? Or do you get a salesperson to enroll you and only after you are in the program do you meet your coach, if there is one?
            1. Ultimately, the best way to evaluate a program is probably some form of personal experience. Just because the program has a great reputation or your friend or colleague loves a program doesn’t mean it’s right for you. Do your own due diligence and be careful of getting involved because “everyone is doing it.” That’s how Bernie Madoff duped all those supposedly smart people.
            2. You might want some sort of less expensive and less time-consuming real-world evaluation process to help you make a good decision before you have to plunk down more serious money to be involved.

The bottom line is that personal and professional development is a good thing. Among other things, it helps you learn from the experience of others. As Eleanor Roosevelt said, “Learn from the mistakes of others. You can’t live long enough to make them all yourself.”

Bob Veres commented on Bill’s November article in FA Magazine: “Bachrach says that the important part of the communication process is not the data, it is the validation of the individual client sitting across the desk from you.  Those communication skills are the key to whether clients or prospects trust you and whether they follow your advice.  From there, he offers some quotes from communication gurus.”  Bert Decker, author of You’ve Got To Be Believed To Be Heard, says that the quality of your communication determines the quality of your life.  Patricia Fripp says that “Specificity leads to credibility.”  (In other words, don’t use words like “stuff” for the actual word you’re searching for, or words like “kinda” and “sorta.”  Motivational speaker Giovanni LIvera says “When you connect people to their heart, you connect them to you.”

Dianna Booher, author of Voices of Authority and Communicate With Confidence says that the truth, the whole truth, and nothing but the truth should not be three separate things.  The truth should not include spin, hype, exaggeration or embellishment.

“Bachrach suggests that you review the script for your meetings (do you have a script?), and see if you’re asking purposeful questions and listening with empathy.  Is the conversation valuable for the client?  He says the most successful communicators will record their meetings with clients with digital hand-held recorders.”  (Financial Advisor Magazine, November 2009 issue – p. 48)

To read the article: “Talking the Talk” published in the Financial Advisor, November 2009, go to:
http://www.fa-mag.com/component/content/article/4618.html?issue=115&magazineID=1&Itemid=73

What were the most inspiring moments of the 2010 Winter Olympic Games in Vancouver for you?

Did you watch certain moments and find yourself saying something like, “If he or she can do THAT… what’s possible for me?”

I hope so, because that’s one of the biggest benefits of watching sports that most of us only watch every four years. There are valuable lessons to be learned. Let’s not miss them and, more importantly, apply them to our own lives.

When was the last time you crossed your finish line at the end of the day and screamed with the joy, relief, and satisfaction of knowing you laid it all on the line? Think about Lindsey Vonn after her gold medal downhill run.

Did you watch some of the cross-country skiing or biathlon with amazement as competitor after competitor collapsed as they crossed the finish line wondering what your own life would be like if you pushed your limits just a little farther? I didn’t catch his name, but one of the cross country skiers commented about how his sport is the only one where it’s normal to puke after practice. That’s commitment. I’m not suggesting that you should throw up at the end of good day’s work, but maybe you could leave a little more on the “field of play.” What do you think?

Who will ever forget 24 year-old figure skater Joanne Rochette whose mother, to whom she was very close, passed away unexpectedly shortly after arriving in Vancouver? Instead of packing it in, just four days later she skated with extra inspiration and won the bronze medal. Could there possibly have been a dry eye in the house or living rooms around the world when she looked to the heavens at the conclusion of her program? It’s no wonder she was awarded the Terry Fox award as the athlete who best exemplifies courage and selfless qualities.

My favorite quotes from the games were:

“Before you go to sleep at night ask yourself one question: Did you do every single thing you could today to make sure that you did your best? It’s hard to answer ‘yes’ every single day.” – Apolo Ohno; Short-track speed skater

“The more awkward positions that I become comfortable with, the fewer situations I’ll be uncomfortable with.” – Graham Watanabe; Snowboarder

“I don’t like to look at it as competition. It’s about me conquering myself… me being able to face my own fears, distractions, and weaknesses and say that I overcame them.” – Apolo Ohno; Short-track speed skater

How does this apply to you? What if being a financial advisor was an Olympic Sport?

How good would you have to be to make the team? Where would your client service experience and client acquisition skills have to be in order to compete with the rest of the financial professional “athletes” on the world stage? How good would you and your team have to be to earn a spot on the podium or win the gold medal? These are great questions for you and your team to consider as you continually look for ways to be your best.

Fortunately, being a great financial advisor is not a zero sum game with only one gold medal. And you don’t compete against other financial advisors only against your own potential. There is plenty of business for all of the great financial advisors in the world. As the saying goes, “it’s only crowded at the bottom.”

Take some inspiration from the athletes of the 2010 Winter Olympic Games in Vancouver, Canada and use it as propellant to achieve your next level of success.

Remember… anything is possible.