Journal of Financial Planning: July 2023
Tammy Breitenbach, ACC, is a Carson Coaching executive business coach. She previously served as the principal consultant of Catalyst Partners, which she founded in 2008 after seven years of director-level experience in financial services. She specializes in providing business counsel and leadership advice to owners of independent RIAs to help them grow more profitable businesses. Carson Coaching is the official coaching partner of the Financial Planning Association.
An adviser I work with recently had a bad feeling about making an ask of an acquaintance to meet with him. He hesitated to ask because he didn’t want to appear like a “salesperson.” I hear this often.
I suggested that if asking for a meeting equaled being a salesperson, then why not change that internal language to reflect what he really was?
I asked: “What’s your own language to describe connecting? What are you?”
“I’m a problem-solver,” he said. “I help people solve for what they want.”
He found his own internal language that redefined the situation from “asking.” He further brainstormed saying: “I hear that you have this big dream—how can I help you to achieve that? I do that for a living, and I’d be glad to take a look at your situation anytime.”
The business development tree for financial advisers can be seen as having two main roots: prospecting and referrals. Opportunities for both surround you. But sometimes limiting beliefs can hold you back from seizing those opportunities—much like the limiting belief that asking to connect means you are a salesperson.
Referrals are an old but proven strategy. The thought of asking for referrals may feel “salesy,” too. But you can set the stage in a way that demonstrates why you’re in this business and attracts people to your “why.” It’s a shift in your mindset.
The bottom line is business development is about building relationships through authentic connection, which builds liking, which in turn builds trust. This article gives tips for creating the right circumstances to get those connections flowing to you.
Shifting Your Mindset to Build Trust for Connection
The current mindset when it comes to prospecting and referrals is that you need them to grow your business. The focus is on you and your growth only.
But if you shift your mindset to helping as many people as you can, now you’re focused on your firm’s vision and purpose—that your team is here to shepherd family wealth and harmony, for example.
That first mindset is all about money, but the second is about impact and service, which prompts thoughts like: Who can I serve the best? Who could I help the most? Who are the natural clients who make it easy for me to do my best work?
Shifting your mindset takes work and intention. Here are my steps:
Step 1: Listen to what you’re telling yourself and change accordingly. What words do you use when you feel nervous or stressed about finding more clients? Are they, “I should? I need to? How in the world will I do this?” Practice replacing that internal dialogue with new, more positive phrasing like: “I’m a problem solver. Today I’m going to meet some wonderful new people with new problems to solve.” Don’t like what’s playing in your head? Record over it.
Step 2: Focus on the right people and set attainable goals. You might feel that you have to ask all your clients for referrals. But that’s overwhelming. You only need to be asking the right people.
Right-size your expectations so it doesn’t feel so overwhelming. Think about it in terms of goal-setting—you set SMART goals (specific, measurable, attainable, relevant, and time-bound). Use that framework here. For example, if you want more clients like your two favorite clients, a SMART goal could be to ask two ideal client families for one referral each by the end of the third quarter 2023. That’s attainable.
Step 3: Think about meetings as conversations. How you talk to other people matters. It’s a conversation, not an ask for something.
Remember your joy about what you do and get to the heart of the value you provide and your why. It makes it much easier to mention your role and your stories in a conversation with people.
Step 4: Let people see who you are to build trust. New business is about creating new relationships. People want to work with someone who is responsible, caring, and has a purpose. Forget the presentation deck or where you’re meeting. Respond to what you’re hearing they need in the moment.
Step 5: Control your environment. Think of your office as your home and your prospects as guests you want to invite in for a chat. As in: “We’d love to have you over and get to know you better.”
Is your office a space pleasant and relaxing for a conversation? Would you feel good visiting as a prospect?
Your environment can positively impact your mental energy for interacting with others, also. If you don’t feel like a rock star when you look around your office or open the door, change it now. Good vibes—yours and theirs—are tangible and they’re worth the investment.
Orchestrate Referral Experiences
We all know that referrals are a keystone of building a business full of ideal clients. In addition to the recurring opportunities where referral conversations typically happen (in review meetings or wowing the new client during onboarding), you can exert an even more controlled entrée for referrals in a few ways:
Facilitate family conversations or summit meetings. Go beyond being the adviser and planner to being the facilitator of crucial conversations for your clients and their loved ones. Become skilled at orchestrating family summit meetings that help clients discuss sensitive topics they won’t on their own—like the kids’ inheritance or helping their aging parents get organized.
Invite your best fans to help you build out. Bill Cates, founder of Referral Coach International, told Michael Kitces on his podcast FA Success that it’s powerful to let your clients feel the excitement of helping you build your business. He said to tell clients, “I’m really excited about building my business this year. I’m looking to add some new families and I’m telling a few close clients who would enjoy joining in support of my efforts.” Then, keep them updated on your activities and progress.
Stop Judging Opportunities
Opportunities to connect are everywhere. But it’s easy to limit our definitions of an opportunity.
A common phrase I hear is: “They already have a financial adviser. It’s just too much to overcome that.” But how can you know their real story? What if they’re not happy with their adviser? Let them be the judge of the opportunity. Open the door and offer to meet without being tied to a specific outcome.
Opportunities also exist in centers of influence off the usual path. Look beyond our related industries and into your own service providers who have trusted relationships with your ideal prospects. An adviser client recently mentioned that her Botox provider sends her great referrals. She has close relationships with affluent clientele who share their personal lives and needs. It’s a great network.
Start Building
With the right mindset and approach, business development can be an enjoyable and fulfilling part of your financial advising practice.
Connect with prospects and clients authentically. Make attainable goals for who and how many connections you can reasonably manage, who match the talent and attention you offer. Come at it from that place of giving, not asking. These things will help you strengthen the roots of your business development tree so it bears and yields great fruit.
