6 Client Types You Need to Be Targeting in Your HNWI Prospecting- Part 1 of a 2 part series

For nearly three years you’ve been hearing from me on the need for a client type approach to new client acquisition.  We are in the midst of a massive shift in generational wealth and Wealth Management firms need to be ready for the millennial-like client who will be looking for their own brand of relationship with you. Those in client facing roles must shift their focus – private client advisors on whole are not achieving their appropriate share of wallet with clients, relying too heavily on AUM and pressing issues of the day. I actually write about this in my book Taming the Four Headed Dragon – current clients, compliance and events are crowding out the time needed for a dedicated prospecting effort.
 
So to make things easier (As BWST always does), I've provided a window into six client types. Each come with their unique problems or aspirations not yet met. I've also provided some nuances to be mindful of when surfacing opportunity during your prospecting. The first set of client types will be those associated with CREATED wealth. (Part 2 will address prospects associated with INHERITED wealth). Source of wealth is hugely important when making connections with HNW prospects:
 
Client Type #1 - The Serial Entrepreneur
Potential Problem Areas

• Always putting capital back into the business
• Low liquidity; need for credit to build the business
• Has not addressed wealth transfer
• Perception that there’s no time, light on planning

Prospecting Opportunity

• Give them permission to take care of their future and the family
• Recommend retirement, education funding, real estate investments
• Know that they’re always looking for the next investment, be ready with ideas
• Secure financing options for expansion

 
Client Type #2 - The Mature Business Owner
Potential Problem Areas

• Often concerned family is not interested in carrying on in the business.
• Ideas to scale or exit the business; use of proceeds
• Unclear around business succession planning
• Hesitant to take money out of the business, release control
• Uncoordinated team of advisors

Prospecting Opportunity

• Sell a coordinated team of advisors and the full firm
• Commercial banking to manage the balance sheet of an entire family business
• Structuring support: title, contracts, controls
• Next generation planning
• Credit

 
Client Type #3 - The C-Suite Executive
Potential Problem Areas

• Concentrated wealth (in their company stock)
• Many ask if they're giving enough away
• Information overload
• Liquidity events that don't signal the market
• Taxation of stock options
• Volume restrictions

Prospecting Opportunity

• Emotional distance and discipline
• Legal support
• Risk Planning
• Coordinated advisor team
• Philanthropic advisement, board recommendations

For more ideas to support an effective client-type prospecting strategy with High Net Worth individuals, sign up here for a link to the corresponding chapter in my book, Taming the Four Headed Dragon (https://www.4headeddragon.com)