By Anthony Glomski and Russ Alan Prince
Your $5-Million High-Net-Worth Practice
We have presented the following equation:
Conviction + Process + Expertise + The COVID-19 Crisis =
$5 Million High-Net-Worth Practice Built Quickly
MORE: Working with the Super-Rich and Single-Family Offices | The Power of Stress Testing | Guiding Clients through COVID | Maximize Referrals from Wealthy Clients | Building a High-Net-Worth Practice During COVID-19 | Setting Financial and Practice Goals During COVID-19
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So, let us review. Working backward …
The COVID-19 Crisis: It is a health and economic disaster that will hopefully disappear very soon. But, while things might get better, it is not going away that quickly, and the ramifications will stay with us for a long time. It will impact the way you do business with the wealthy for years or much longer.
From the business side of things, the crisis has shown many of the wealthy that they have not been as diligent as they could be. Thus, the opportunities for conducting stress tests are considerable. The ability to stand out and pick up a wealthy client from competitors is similarly great. By concentrating on the other components of the equation, you can surely build a $5 million high-net-worth practice.
Expertise: You and your firm’s capabilities, and the professionals you can bring to the table, comprise your expertise. How you structure your expertise is the nature of your high-net-worth practice.
For a great many of the wealthy, the family office model is markedly attractive. The range of services coupled with an exceptional experience that was once limited to the super-rich is in high demand by those without a $500 million net worth. You must also decide whether to adopt a product-neutral or product-inclusive financial product business model.
When it comes to the matter of expertise and the way you structure and run your high-net-worth practice, you are making business decisions. Very likely, your partners will be involved in some – sometimes all – of these business decisions. Whichever way you choose to go, you can build a $5 million high-net-worth practice.
Process: Irrespective of the decisions you make about your high-net-worth practice or how competent and proficient you are, regardless of how capable the other accountants are at your firm, without process, you will likely not have much in the way of business with the wealthy. Your ability to develop and enhance relationships with the wealthy and other professionals is essential to your success.
The Everyone Wins Process is one of the most effective ways to develop and enhance powerful relationships. The focus of the process is solidly on the people you are dealing with. By effectively using the Everyone Wins Process, you can maximize wealthy client relationships and cultivate new wealthy clients, paving the way to your $5 million high-net-worth practice.
Conviction: This is all you. Mastering the Everyone Wins Process to put together your high-net-worth practice takes effort – your effort. Knowing what to do is not the issue. The Everyone Wins Process is highly learnable. Very likely, you are pretty good at it already and may only need to do a little fine-tuning.
Putting a top-performing high-net-worth practice in place is actually mechanical. After you make key decisions, such as whether to provide financial products for compensation or not, the next steps are all straightforward.
What holds accountants back from ever-greater success is almost always themselves. For example, there is a very high probability that you have hundreds of thousands if not a million dollars or more of additional revenue in your book of business that you have yet to uncover. You most likely know other professionals who if you were to help them achieve their self-interest would be thrilled – yes, thrilled – to refer you their wealthy clients.
You have to want to succeed and be willing to make the effort. Combining the other components of the equation with your conviction, you can quickly – because of the COVID-19 crisis – build a $5 million high-net-worth practice.