by George Ray

In my last post we talked about building a positioning statement using as three-step approach (go here if you missed it) that starts a conversation with a potential prospect.  When suggesting that financial advisers use this approach, I often get two big questions that are valid, and should be addressed.  The first question deals with why I recommend the three-step approach specifically for financial advisers, and the second question is concerned with the fear of closing off the conversation by offering only one specific problem that you can solve.  Let’s take a look at each of these questions.

Question One: An adviser said, “George, why should I say to someone ‘You know how most people have this problem? Well, what I do to solve it is this.  And, the reason I do that is because they will feel like this after I’ve helped them.’ That seems like an awfully long and hard way to answer the question ‘So, what do you do?’. Why couldn’t I just say that I’m a financial adviser, a financial planner, or a wealth manager?”

You’re assuming that most people know what a financial adviser or financial planner really is, and what he actually does.  But, get 20 financial advisers together in a room and ask them about the services that they provide to their clients.  Ask them to describe their businesses.  You’ll likely get twenty different answers.  So, if we can’t agree on what we do and how we do it, why would we expect anyone else to understand our jobs?  That’s why describing a problem, the solution to the problem, and the emotion that results can be an ideal solution.  It focuses the discussion where you want it to go, and helps to explain what you do as an adviser (not what all other advisers do). However, this method really works best when you have a job that isn’t well understood (like a financial planner), or may have a lot of variation to it  (like a financial planner).  It doesn’t work so well for a person who has a job that we know well.  Here’s an example that shows how silly this could be:

Me: So, what do you do?

Guy: Well, you know how when people’s houses catch on fire they need to put it out?

Me: Yes?!

Guy: Well, what I do is drive up in a big red truck with a hose and a ladder and put it out.

Me: Oh?!

Guy: Because when I do people feel much safer and happier.

Me: So, you’re a fireman??

Guy: Yes.

Me: Jeez, why didn’t you just say that? I know what a fireman is. Do you think I’m a moron?

This is a ridiculous conversation.  We have a  pretty good idea of the fireman’s job, so this really isn’t necessary.  Yes, he could have just told me that he was a fireman. But when the job and its duties aren’t as clear (or if you want to clarify them), then the three-step method can help you do that.

Question Two: “George, I don’t like this method because I may introduce a problem that I can solve, but what if the person that I’m talking to doesn’t actually have that problem? Isn’t that the end of the conversation?”. For example:

Guy: So, what do you do?

Me: ‘You know how most small business owners are so busy running their company that they have little time to spend managing their investments?

Guy: ‘Gee, no I don’t. I’m not a small business owner.’

That’s OK, it isn’t end of the conversation. It would have been better to ask ‘So, what do you do?’ to him first, which would help you to decide which problem that you want to tell him that you solve, but In this situation, one of three scenarios is likely to follow:

1.     Firstly, he may disqualify himself for you. OK, so he isn’t a small business owner, and that’s you’re target market, so you’ve just eliminated him as a prospect.  Keep talking if you like — you can relax and have an interesting conversation about another subject that isn’t all about you. Or, if you’re really on a mission to find new business, then move on to someone else.

2.     Secondly, he may ask you for an exception.  “I’m not a small business owner, but I could really use some help with my rather large investment portfolio.  Would you be willing to help me?” Since he doesn’t fit your target, it’s your call on whether you want to make an exception. “Well, I usually just work with business owners, but when you say large, exactly how large is it?”

3.     And lastly, he may offer you a substitute.  “I’m not a small business owner, but my uncle is.  You should really talk to him.” Ask him why, and if he’ll also introduce the two of you.

So, don’t be afraid to build your positioning statement by using this three-step method, and use it consistently when you meet someone who asks ‘So, what do you do?’  You’ll have a better opportunity to explain what it is that you actually do, and how you help people.  Even if it doesn’t land you a new prospect with the guy or gal you’re talking to, you may find that it will still lead you to new business.


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