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December 2007

December 26, 2007

New Year Resolutions-Be happy

As we turn the page to 2008, what comes to mind but New Year Resolutions. Many make them but few keep them. Why? Phychologically there are several reasons. One is that they are not our own. They are what someone else thinks would be best for us. Second, they are too ambitious. Too hard to achieve, so we give up easily. Finally they are usually stated in the negative. For example: "I will lose 20 lbs. in the next 3 months". Instead, try stating it as something you own, that is reasonable, achievable, in the positive and in the present. For example: "I am very happy with all the energy I have since I now weigh 175lbs. Because of my conditioning program I will get to see my daughters children get married". Now you have something that connects you to something that is really important to you. Not to someone else. It is stated in the present and is positive. How does this idea of New Year Resolutions translate to the FA Supernova practice? As you put together your business plan for the new year you may want to review your practices physical condition. Are you as lean and mean as you need to be in order to defend your practice against new competition and attract new business from old competitors. Has your practice gotten a bit blotted. No matter how disciplined you are by your Min/Max, unqualified people slip into the practice. What might a resolution look like that would get your practice back on tract. "I have a lean and profitable practice based on high quality service and exceptional results for a qualified clientele of 100 that likes, respects, trusts, and pays me."  What does a typical Min/Max look like? We focus on what we want vs what we don't want. For me I know that based on the Supernova model the most clients that a Supernova FA can have is 100. Your Max# may be different , but it must be something that you can reasonably service. Set too high a number and you will be frustrated and quit  your goal. Your minimum should be whatever it takes to reach your goals, deliver exceptional service and love your practice. For example, I personnally decided in 1973 in my practice that it was critical to make myself happy in order to keep my attitude positive. Therefore all of my clients had to pay me my minimum, like me, trust me, and listenen to me. I knew even then that my attitude was critical to not only the growth of my practice but also the retention of my clients. My clients sensed it when I was down. Everyone wants a leader,coach that is always positive even in the face of real challenges. Cool under fire and always constructive. Great leaders and coaches surround themselves with highly qualified, positive and talented people. Why should your clientele be any different. That is your team and you are the coach. Their results are your results. Pick a bunch of negative losers, no matter what their wealth and you have a losing team that will make your life miserable. On the other hand pick a talented team of positive wealthy people and you'll have fabulous business always ending with a smile. Harder to build but worth it. Try it you'l like it.

Rob....

December 21, 2007

High Quality Service and the Holiday Crush

Can high quality service go hand in hand with retail sales Holiday sales. The answer is yes. In the right stores and you  pay for it. Just go shopping at Costco vs Sears vs Nordstroms. Now compare that experience of in retail to your experience in Financial Services . Full Service vs discount vs no service. What is that service guarantee at your full service firm? At your discount and no service firm. Does it exist? The biggest problem with retail service is expectations? You go to Sears you expect courteous informed salespeople. What do you get? Nothing. You can't find anyone to help you. When you do find them they are stressed out by having to handle too many clients. Cost cutting at Sears has stressed the retail sales staff and is ruining their brand. When you go to Cosco you get what you expect. Low prices and warehouse service. Low expectations that are usually exceeded. What about Nordstrom? High expectations matched by high quality experience. The results of both Costco and Nordstrom  create both a happy sales force and happy clients. Where do Financial Services fit into this mix. Clients are generally happy with Schwab due to low expectations that are exceeded What about full service firms. High expectations by the client without a clear service model= disappointment on both sides. A client came to a full service firm with $1000 and was asked by  his FA what his expectations were for service and contact. He responded "I really only want to be called once..ah..ahh..week". This is Sears's problem. High expectations low margins and low service. FA's better establish a minimum profit margin and and a minimum level of service. Buy a copy of my book, The Supernova Advisor" and find a service model that will work for your business.