WHAT IS DIFFERENT ABOUT WHAT YOU’RE DOING?
One of our advisors, for whom I have great respect, inquired about the tools available through LSIA for distinguishing a financial practice. In the current world we work, everyone is getting better and better at conducting their business. Growth of 2% a year is the average and if you’re not keeping up then you risk becoming obsolete. A fragmented market doesn’t help much either. With so many firms competing for your clients, existing and potential, your message will certainly get lost in the cacophony of declarations heard daily, all sounding very much alike. Hard to count these days the number of firms doing $4.95 trades. And do you really want to add value through pricing? Everyone knows the script, and without scale (it helps to be bigger) or a targeted clientele (these are the clients who are with you now), you’re wasting money and effort. Ask yourself, what is different about what you’re doing? You’re going to need an answer sooner or later to remain relevant.
You need to differentiate yourself and I’m not talking about sending out birthday or anniversary cards once a year. Remember, everyone knows the script, but you must make clear what makes you different. Consider the following. First, with clients, think about finding the right client for your practice and how do you attract that type of client. “Being selective about clients can actually make growth easier,” according to Blair duQuesnay of ThirtyNorth. “Talk to your ideal client and find out what they like. What is it they value most about what you’re doing for them?”
Defining what you value as an advisor is often the first step in defining and communicating what makes you different from the competition. Have a vision and a story. Next, consider scale. Small fragmented markets are ripe with inefficiencies. Removing waste and adding capacity can free up resources that can be used to better define who and what you are. It allows you to take on the type of client most suited for your practice and not feel compelled to make a client out of everyone who walks through your door. And, lastly, think about your investment lineup. I like Salt Creek. The Salt Creek platform is a differentiated offering. LSIA is the only place any client can access this unique, actively managed fund of funds. As fiduciaries working within the framework of an ever-changing regulatory environment, we have what we feel is an excellent offering. The analysis and development that each quarterly rebalance brings meets any of the rigorous requirements now being demanded of fiduciaries.
At the end of the day, your business is about people (clients and staff), product (those strategies and tools you use to meet client goals), and profit. Success in all three is the desirable outcome and perhaps the only outcome.
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