Agreeable, Profitable and Fun Clients

This assignment is focused on the kind of clients you currently have. Are they:

Agreeable - is your communication amicable, respectful, pleasant? Does the client listen to what you have to say, and do they typically agree with the investment advice you propose? Do you look forward to contact with the client, or do you avoid them? Do you find that you and the client are typically in sync, or more at odds with each other? Is it a harmonious relationship, or one that is more edgy?

Profitable - is the roa on the clients assets in line with your business plan? I would suggest that an acceptable roa range would be 60bps - 1%. Clearly, you have to assess the time spent on the client verses the income the client is generating. After all you are running a business. I'm not suggesting you do things that are unnecessary in order to generate production, however having a cadre of clients that produce no income is not a viable business.

Fun - do you do fun things with your clients? Do you enjoy lunches or dinners; go to sporting events, or the theater or symphony, play golf or tennis, etc? Does the client have a sense of humor, and do you enjoy light hearted moments occasionally? On one hand you are doing serious work and providing well researched and sound advice. On the other hand, nothing says it can't be done in an enjoyable and satisfying manner.

Using the attached chart (Excel spreadsheet), review your top 25 clients for their agreeable, profitable and fun coefficients. If most of your clients fit the profile of the kind of clients you enjoy terrific! If some don't, ask yourself if any changes in behavior on your part could remedy the situation. If the answer is no, consider perhaps that the client may not be a good fit for you and your business.

Once you have completed this phase consider applying the same criteria to the next group of 25 clients, and repeat the process until you've assessed the top 100 client relationships that you have. If 80% of these clients fit the profile great! Weed out the one's that don't fit and ask yourself why they don't. Could changes be made? Could you reset expectations? Should you completely review the portfolio and the relationship and rest the playing field? If yes, move forward. If no, perhaps this client should be encouraged to seek advice elsewhere.

Once you've reviewed your clients and have some specific cases, and if you'd like to discuss possible courses of action, please let me know and we'll arrange a mutually convenient time to do so. Good luck!

Attachment: Top 25 Clients

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