What Are Obstacles To Doing Business With HNW Individuals?

“Why can’t they just come to me?” When you seek to build a clientele of HNW individuals, you often need to cultivate them and play by their rules. Many professionals would prefer they walk through the door and ask to become your client. The only way this usually works is when you are the lowest cost provider. This was the model Wal-Mart used for years, but today, even Wal-Mart advertises. You will need to go after the people you want as clients.

You know how to do that. Unfortunately, things often do not proceed at the speed you prefer. Why?

  1. Wealthy people for relationships first. They want to get to know you, then they decide if they will do business with you. Put another way, they want to first determine if they trust you.

Strategy: Cultivate many people simultaneously. You are like a short order cook at a busy breakfast spot. You constantly have several orders on the go. If you focus on one relationship at a time, you might be waiting a very long time.

Opportunity: You know plenty of people. Some of them are HNW individuals you had not initially classified as possible clients. They have gotten to know and trust you. They have likely “Tried you on for size” in their mind. Ask them to become clients.

  1. Wealthy people work on their timetable, not yours. Tax filings have deadlines, although it is possible to get extensions in some cases. If there is not a time pressure present, HNW individuals may have more pressing things on their mind. Fortune mentioned 55% of Millennials surveyed spend more time planning a vacation than their retirement. (1) They have other things on their mind competing for their attention.

Strategy: Continue to encounter them in social situations. When they are ready to take action, you want to be the first name that comes to mind.

Opportunity: If you have talked about business before and there wasn’t a time pressure present, are there times when time pressure can enter into the conversation? If they started a business on the side and file taxes for that business separately, have they setup an additional retirement account connected to the business? When is the deadline?

  1. The wealthy pay attention to your image. You know plenty of local people who are in sales. Do you know any who come across as predatory? Of course, you do. If not, Danny DeVito’s character in Taxi, calling the recently bereaved, is a good example! Many wealthy people are involved in community organizations to give back. You are involved too, but if your involvement is seen only in the context of getting business for yourself, this reflects badly on you.

Strategy: Use a light touch. You are kind on the surface, but efficient when following up business opportunities that have revealed themselves.

Opportunity: Be seen as a conscious community organization member, a “worker bee.” It’s likely wealthier members will see you as doing things they wished they had the time to do. They may want to reward you by sending some business your way.

Getting business through your involvement in community organizations has a long lead time. The rewards can be significant.

  1. https://fortune.com/2022/07/01/vacation-versus-retirement-planning-millennials/

Related: Do Professionals Need To Look For More Clients?