In my Money Marketing article marking 50 years in financial services, I set out some of the lessons I have learned along the way. On reflection, there are three more important ones I missed.
The first is the need to develop, maintain and constantly improve our listening skills.
The second is that we should never assume the people we are talking to fully understand what we are saying or have a specific level of knowledge unless we obtain confirmation either verbally or in writing.
The third is to never assume someone is not interested in engaging with you if you do not hear from them.
I had made assumptions of which I should have checked first. He was, understandably, annoyed
I may consider myself to be a good listener but a recent occasion made me realise that I can sometimes fall short.
I was working with a client who was very precise in his requirements, both verbally and in writing. I presented an option which did not meet the criteria he had set out. I had made assumptions of which I should have checked first. He was, understandably, annoyed.
I talk to a wide variety of financial planning firm owners, from one person/single adviser firm principals to the chief executives of very sizeable firms. It is both simplistic and a flawed assumption to think that those running larger firms somehow have more knowledge of the process for acquiring and selling firms.
I have, in the past, assumed that silence is the same as lack of interest
I have met principals of relatively small firms who have done a lot of research before embarking on the process of selling their business, and so are very knowledgeable, and CEOs of larger firms who have gaps in their knowledge that I would not have expected.
A specific example is the difference between an asset and a share purchase and the tax consequences. I recently encountered a buyer that would only contemplate asset purchases because they had not sought legal advice on how they could mitigate the risks inherent in a share purchase.
They had wrongly assumed a share purchase structure was unworkable and had, consequently, been unsuccessful in acquiring firms they were keen to buy.
Meanwhile, there is a careful line to be walked between being too “laid back” when corresponding with prospective clients and being so persistent as to risk being accused of pestering them.
The maxim I try and remember to consciously follow is: if in doubt, check
I have, in the past, assumed that silence is the same as lack of interest. On occasions, it can be that the person I am in dialogue with there has other priorities I am not aware of.
If I do not follow up, the prospective client could assume I am not sufficiently interested. This happened to me when I was less experienced. With this in mind, I make it my practice to seek confirmation of what a prospective client wants to do before moving them to my “not taken up” file.
These three lessons all lead back to one of the lessons I highlighted in my previous article. Every client is different, and one size certainly does not fit all. The maxim that I therefore try and remember to consciously follow is: if in doubt, check.
Roderic Rennison is a founder and partner of Catalyst Partners
