Tampa, FL (PRWEB) January 23, 2013
The beginning of a new year is often accompanied by new goals, which for business advisors may include the acquisition of more high net worth clients. FPMG, a performance management firm, recommends that advisors with this goal remember this line from a 1926 F. Scott Fitzgerald short story: “Let me tell you about the very rich. They are different from you and me.” There’s a good deal of truth in it—truth that needs to be understood by those who want to serve high net worth clients as business advisors, according to FPMG.
“It might be surprising to learn that the first thing I recommend to business advisors who aspire to serve the wealthy is to be comfortable with how they feel about money, and understand the issues they may have regarding it,” said Denise Federer, Ph.D., FPMG’s founder. “Advisors need to think back to their first experiences with money, as well as the messages they heard about money from their families while they were growing up. Without that ‘baseline,’ it will be quite challenging to serve as an advocate to high net worth clients.”
Once business advisors have a firm grasp of their relationship with money, they then can move on to attempting to meet the high level of expectations that wealthy clients will have. Actually, what high net worth clients want isn’t much different than their less-well-off counterparts, FPMG notes, but the stakes are quite a bit higher, as is the scrutiny.
In a nutshell, high net worth clients desire:
- Objective advice
- Relationship stability
FPMG also notes that the ultra wealthy will also be quite cost-conscious; they didn’t amass fortunes without keeping a sharp eye on the bottom line. And, business advisors can never forget that these coveted clients have plenty of choices when it comes to selecting their advocates, and they talk with one another, so word about good or bad performance quickly gets around.
In addition to overseeing “dollars and cents,” FPMG believes that it’s important for business advisor of high net worth clients to understand the impact decisions made today have on legacies and inheritances. They may need to broaden their view of what wealth is, and address issues such as openness (or lack thereof), difficult family members, and value transfer.
At the core of every relationship is going to be trust, FPMG notes, since those with the most to lose need to have complete confidence in those they select as business advisors. Five of the most important elements of trust are:
- Integrity—having a reputation for honesty
- Competency—being technically knowledgeable and able to provide interpretative data
- Consistency—showing good judgment in all situations
- Loyalty—protecting clients’ interests at all times
- Openness—sharing information freely and being comfortable in your own skin
“One resource I recommend to business advisors who want to enhance their chances of securing high net worth clients is Families of Wealth by Charles Collier,” Federer said. “Among its many takeaways is learning the importance wealthy people place on human, intellectual, social and financial capital. Remember, the rich are different, but knowing how to address their needs as a business advisor is the first step toward developing long-term, lucrative relationships.”
FPMG is a Florida performance management consultancy dedicated to guiding successful people to be their best. Based in Tampa, we help you uncover the non-financial issues that impact the bottom line. FPMG offers consulting for family business problems, financial advisors legacy advising, leadership development, and more.