7 Counter Intuitive Lessons Working with Family Office Clients Brought to by Richard C. Wilson of the Miami Family Office & Family Office Club Copyright © 2017
Family Office Club For 10 years running, the Family Office Club is the premier community for more than 1,500 registered family offices managing $1 trillion+ in assets Current Clients: $450M EU Family Office $150M Midwest Family Office $550M real estate Family Office $1.3B Food Industry Family Office $3B+ Multi-Family Office (Executive Search) $200M Senior Living & Apartment Buildings Family Office $250M Diversified Real Estate Single Family Office $50M Hospitality Industry Family Office (Formation & Origination) $2.3B Florida Single Family Office (Formation) In total our clients under contract with us currently manage well over $20B in assets, have over 50,000 doors of multifamily properties and all came to us via the Family Office Club and the strategies suggested in our 5 Step System to Raising Capital.
What are Family Offices?
What is the Scope of this Opportunity?
Step 1: Analyze Before deciding how to position yourself and how to identify and obtain choke points you have to first identify best practices to emulate and the state of the marketplace.
Good artists copy, great artists steal
7-70 Rule Identify 7% of your market and dominate 70% of that space. Apple had 7% market share but 51% of profits Different in a unique way, valuable to customers, that you can be #1 at?
What is Inevitable that you can Expedite
Develop Your 1 Pager Summarize your research for team or partner discussion points Start identifying the brand message, promise, position, what trends do you see What best practices will you steal and how can you patch together the best of all existing offerings for 7% of the overall marketplace that matters? What is your unique DNA that allows you to do something your competition never could?
Step 2: Position After studying your marketplace identify a strong position that once obtained will lead to momentum, investor relationships, and/or deal origination.
The Scarce Authority Combining the power of scarcity and authority makes for a potent capital raising advantage in the hedge fund industry. Scarcity: Limited resources are seen as More valuable. Loss is greater motivator than gain in all cases. Become extremely authoritative, or great USP. Create competition to invest within your fund. “Looking for 3-4 family offices to partner with” Has to be believable – Family Offices.com Example. (Because…)
Best Way to Hunt HNW Prospects: Don’t.
Generic Positioning
Tightly Define Your Sandbox
Maturation= Need for Specialization
Crystal Clear Advantage 2,000+ pitches a year. 86% of investors won’t invest in something they don’t understand. Half of all “passes” on a strategy are due to educational barriers. Geographical & Sandbox Family Focus. Families are fee-sensitive.
Step 3: Architect After defining your position you will need to decide how to plan for building strength in your position and defending it against easy entrance for those that will follow.
Step 3 Architect
Benefits of Investor Funnel Creation Synergy: It is always a lot of work to build a funnel, but planning before hand can save you 100’s of hours. Expertise & Network Growth: Over 5 years you can become more of an expert both in perception and reality than those with double your total experience in the industry, this leads to a massive network of relationships. Niche Saturation: You can fill a small niche with content using a funnel so that you become a “household name” within your sandbox. Productive Relationships: Even if the investor you are meeting with didn’t come to you through the funnel you can use these IP assets to boost credibility and be a genuine resource to them very efficiently.
Step 4: Execute After analyzing the competition, deciding on your positioning, and architecting the strength of that position you move into executing using capital raising best practices.
Create Unfair Advantage Leading Strategic Partners or Board Members Exposure – media companies Built In Flow – work in the space Built in Investor Base – Larger investment shops or wealth management firms Position as the #1 for a specific need or space or geography Private Jet Experience Example
45 Business Development Benchmarks Custom Avatar Competitive Analysis Website Brochure/Infographic – 1 page Logo/Brand Tag Line – 1 line Click to Chat Facebook Company Page Facebook Pin Drops Facebook Lead Gen & Titles Instagram Page LinkedIn Page LinkedIn InMails & Updates Business Cards (Gitomer Test) Upgraded Email Signature Email Auto-Follow Ups Email Opt-In System Website Chat Software Google AdWords Capture Premium Domain Name LinkedIn Groups Acquired Twitter Profile & Posts Whitepapers/Reports Handbook/Guide Amazon Publications Conference Exposure Leveraging Webinars Brand Champions Influential Board Direct Mail Navigating Associations Referral Partners/Affiliates Columns/Newsletter Navigation Public Relations Strategic JV Relationships Professionalized Team Photos Phone/Voicemail Scripts Key Performance Indicators (KPIs) Google Keyword Tool Research Google & Apple Maps Office Location/Impression Shock & Awe Package Podcast Exposure & Hosting Qualified Data Lead Lists Buying Top Media Assets Choke Point Analysis
Power of Actually Listening
Lessons in Local UHNW Networking Identify Top 10 Connectors In Your City Add Value First Position With Branding Identify Top 5 Communities Identify The Gap Generate Press Direct Mail Be Noticed – Ogilvy Strategy (Office Space/Car/Memberships)
Work the System Develop and document your core 5-10 capital raising processes and place them in a operations binder. Assign accountability and update these processes each week so they reflect the ideal reality of how capital raising operates within your firm. Ensure employees own the system and that it is used and “alive” within the organization. Listen to my free audio interview with this author here: http://FamilyOfficesGroup.com/Audio2
Step 5: Iterate After following the first four steps the work is never done, you continue to analyze new niche markets, re-position yourself, and claim more niche sandboxes congruent with your branding.
Final Comment: Speed of Implementation A B CDT (Huge Progress) Example #1: White paper RIA Network Partnership Educational Resources for RIA Network $500k/week in AUM Example #2: Hedge Fund Blog Book CHP Designation Wiley Book CHP Expanded Hedge Fund Marketing Materials.com + Hedge Fund Marketing Mechanics
Final Comment: Speed of Implementation Definition: The focus on instantly applying new ideas, lessons, methods, and tools to gain real life feedback as fast as possible. Benefits: Leapfrog those waiting to conduct more research, stuck in compliance approvals, bogged down in bureaucracy, stopped in their tracks by politics, or lack of hunger for growth. Applied to marketing it means you move up the learning curve 3x faster than your competition and waste less money while doing so. 2009 Conference: 10 speakers all with businesses of $5M – only 1 piece of advice in common.
Conclusion Putting together all of the pieces of your 5 Step Capital Raising System.
7 Counter-Intuitive Lessons Don’t be too creative Stop Chasing Prospects Identify Tides Work in the Business Focus on Unique Ability but Team/Firm Avoid 1 Trick Pony Instead of Closing Focus on Listening Be Crystal Clear on Your Unique Position & Value That Matters: This is intuitive but nobody does it so I guess that makes it common knowledge not commonly followed. Everyone has a weak excuse on why they should dilute their role and value. The counter-intuitive piece is that by saying no to some opportunities you strengthen your position.
Peter Thiel – Anticipating the Future and Controlling the Choke Points that Will Matter
Wilson Holding Company Connect Directly Richard C. Wilson CEO/Founder Wilson Holding Company Direct Line: (305) 333-1155 328 Crandon Blvd. Suite #223 Key Biscayne, FL 33149 Richard@FamilyOffices.com
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