How Can CFP’s Beat the Big Guys?
By leadership author and keynote speaker Ross Shafer
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Today, I want to talk to those of you Certified Financial Planners about what you can do to differentiate yourself from the so-called bigger firms. First of all, it may shock you to know that in most industries, BIG fears SMALL. It’s sounds counter-intuitive but if you operate a smaller office, in a local community, you have an enormous advantage. You are a name, and a face, and have a place of business in your community. You know people and people know you; which makes you someone who is accountable. People assume you care about where you live and that you won’t risk your reputation by messing up. Furthermore, if you are a member of your local chamber of commerce or a service organization, you have the opportunity to make a direct contribution of your time and energy to make your community better. And THAT matters to people.
I’m not just talking about writing a check for softball jerseys. I’m saying that your personal participation builds trust and generates an emotional commitment from your neighbors. But that trust comes with a big responsibility on your part because you don’t want to disappoint their expectations. Here’s where differentiation comes in. As you know, a lot of insurance and retirement products look the same. But what is always different is YOU. You are the person providing the products and the advice. The best CFPs are likable – they are very well informed – and they take a consultative approach to financial planning. Yeah, I know. We’ve all heard the term “consultative approach” but what does that mean to your clients? What does the client expect from you? The answer is this: WORLD CLASS EXPERTISE.
I like to compare financial planning to what doctors refer to as THE WEB MD effect. I know you’ve experienced this, too. People feel sick. Then they go online to self diagnose their problem. They see a dozen very common symptoms and convince themselves they know exactly what’s wrong with them. Self diagnosis drives doctors crazy because then they have to spend a lot of time doing what they call “reknitting-the-sweater.” The same thing happens in your business. A client might do a lot of research online and conclude they know how to direct their financial future. But they haven’t made a career out of it like you have. So, to differentiate yourself as the trusted advisor you have to be smarter than the Internet. Know all of the answers you can about every avenue of the financial services industry. Think of yourself as a business consultant. Business consultants consider the R.O.I. of everything. Let’s say you’re meeting with a client who owns a small to medium sized business. Before the meeting do your homework about what it takes to make money in your client’s business. Use your experience with other business clients to show your new client that you understand how the right people, the right processes, and the right gross margins will create more R.O.I. The more money your client makes, the more money they will have to invest with you.
The other big hurdle for a CFP is the constant upheaval in the financial markets because Equities go up and down. Interest rates have peaks and valleys – and news stations are on the constant prowl for any potential crisis. And that’s when your phone lights up. That’s why you must always be the SENSIBLE ONE in the midst of PANIC. Your ability to be calm and unshakeable will be a great relief to your clients.
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