Blog Posts Via E-Mail


Michael Roby's Book

Click here to learn more about Michael Roby's book, Ultimate Small Cap Business

Subscribe Via Reader

Add to Google Reader or Homepage

Subscribe in NewsGator Online

Subscribe in Rojo

Add to My AOL

Subscribe in Bloglines

Subscribe in NewsAlloy

Posts Tagged ‘Change’

Your Broker-Dealer Just Sold; What’s Next?

Posted By Michael Roby | Friday, August 18th, 2017

Things happen fast in the digital age. In the old days, you received a wire, a letter, or you joined a conference call. Today you might hear about it when you receive a notification on a smartphone.

Your broker-dealer sold to another firm.

We react in a visceral way to events like this. We remind ourselves, “Business is business.” But at some level we feel hurt, maybe even betrayal, to say nothing of the inevitable headaches which come with switching firms! At best, you lose three to six months productivity. So…what’s next?

Take these five positive, proactive steps.

  1. Don’t Panic
  2. Communicate With Clients
  3. Decide What You Want
  4. Negotiate From Strength
  5. Always have “Plan B”

Don’t Panic

“Only 8% of our worry will come to pass. 92% of our worry is wasted. DON’T PANIC” ― Mark Gorman

While change presents challenges, it also presents opportunities for growth. While your BD makes a difference, people do business with you. Contrary to what they would have you think, your BD is not your family and you don’t work for them. Your relationships will continue, but like all relationships you must be intentional in continuing them. Your BD is a vendor; you are their customer. While circumstances exist which are outside your control, what’s important is how you react to them. Be methodical in your approach to the change and keep asking, “How can I use this to grow and improve?”

Communicate With Clients

Do not let your clients hear about this from someone other than you. You get on the phone immediately and tell the client the following:

  • This does not change the nature of our relationship.
  • You continue to be their advisor.
  • You work for them, not the BD.
  • You are doing your due diligence to make certain the new firm provides all the tools you need to take care of your clients’ needs. If they don’t, you will look at other options.

You send out a letter ASAP and force this issue with compliance. This is not marketing; it is client correspondence. Send a simultaneous compliant email. Also, in a compliant manner, post the news release on your social media platforms.

Decide What You Want From A Broker-Dealer

If you ever need to consider your other options, consider what you want and need from the BD Relationship. Rank these factors according to your top five priorities, and put together an RFP. What do you want and need?

  • Additional Compensation
  • Advanced Planning Capabilities
  • Benefits
  • Brand Power
  • Concierge Service For Advisor
  • Contact Management Platform
  • Expense Reimbursement
  • Financial Stability
  • Independence
  • Inter-Firm Networking
  • Intra-Firm Networking
  • Lead Generation
  • Licensing Support
  • Management Opportunities
  • Marketing Support
  • Payout
  • Planning Software
  • Product Selection
  • Public Visibility
  • Recruiting Potential
  • Relocation Opportunities
  • Reputation
  • Sales Management/Leadership
  • Training
  • Trips & Conferences

Be Proactive and Negotiate From Strength

Don’t “wait and see what the new firm has to say.” Explore your options and see what the market will bear. This is a negotiation. Develop your Zone Of Potential Agreement, set the Anchor Point(s), and negotiate.

Always Have A “Plan B”

BD Changes, especially if unanticipated, show the need to always have a Plan B. Even when the dust settles, know your Plan B. While never easy, BD Changes can be an opportunity. You have the ball; run with it!

The Process: Part II

Posted By Michael Roby | Tuesday, January 8th, 2013

Four short months ago I wrote a post called The Process. This post discussed The Alabama Crimson Tide football program coached and run by Nick Saban. Last night, execution of “The Process” resulted in Alabama’s third Bowl Championship Series (BCS) national championship in the last four years.

Born sixty-one years ago in Fairmont, West Virginia, Saban is at the top of the sports world. He appeared on the September 1, 2008 cover of Forbes magazine as “The Most Powerful Coach in Sports”. So what makes this man possibly the best coach in the history of college football? His passion? Standards? His knowledge of the game? Recruiting? Work ethic? His assistants?

The answer is simple; it’s EVERYTHING. Saban’s success is a product of all of these things and more… it’s called THE PROCESS. It’s doing everything according to a predetermined standard, never satisfied with anything less than perfection. Saban does not allow his players to talk of “Repeats” in coming seasons, or to refer to the Alabama Program as a “Dynasty.” He demands focus upon and execution of those things in The Process designed to achieve Alabama Football’s objectives on an hourly, daily, and weekly basis. Alabama’s All-American center Barrett Jones said “it’s all about playing to a standard.”

What lessons can we learn from the Alabama Crimson Tide Football Program that apply to our businesses? While it is not easy, it really is pretty simple. Consider these four steps to maximizing the value of your business:

  1. Define your objectives with the clarity of the crystal in the BCS National Championship Trophy.
  2. Develop a Process that is unique to your business rooted in foundational principles, but also subject to constant, never-ending improvement. Leave no stone unturned.
  3. Execute The Process.
  4. Never, NEVER be satisfied with anything less than perfection.

Congratulation to those associated with Alabama Football. At least for today, we applaud you. At least for today we can say… Roll Tide!

    Work Hard & Have Fun!™

    So What Do I Do NOW?

    Posted By Michael Roby | Tuesday, December 18th, 2012

    It’s the most wonderful time of the year…BUSINESS PLANNING. Advisors across the hemisphere are planning for 2013. However, we tend to forget Business Plans contain four critical elements:

    • The Preparation
    • The Plan
    • What’s Next?
    • What If’s

    “The Preparation” includes gathering all of the information that addresses where you are today; Facts & Figures molded into an analysis of the current situation, along with a description of your “Perfect World.” Perfect World details your dreams, goals, and Now Composite IIIobjectives. “The Plan” provides step by step strategies, tactics, and corresponding activities and timelines for attainment. “What’s Next?” is the question that gets you to focus on what you need to do today – RIGHT NOW –  to make the outcomes you desire come to reality. Why focus on “What’s Next?” Because it is all you have.

    “If you want to make God laugh, tell Him about your plans.” – Woody Allen

    “What If’s” allow you to be nimble, and have options and alternatives. Because situations and circumstances change, you need to be prepared to react and change plans. Don’t do so every time things go against you, but be aware of systemic changes that can affect your plan.

    Happy Holidays, Merry Christmas, Happy New Year, and..

    Work Hard & Have Fun!™