The Bridge: Fall 2019 | RIA Edition

R I A I N D U S T R Y K N O W L E D G E F R O M O A K S T R E E T F U N D I N GÂŽ

a first financial bank company

FALL 2019

Keeping your cool Page 4

A quick 10-step business tune up Page 10

Destination: Refresh

FEATURES

RIA

Fall 2019

Publisher Oak Street Funding Editorial Directors Meghan Milam Beth Saxen Contributing Writer John Walsh

A Quick 10-Step Business Tune-up Back 2 School

10 6

Fall is the time for the go-getters of the world to improve, and the key to that is to always be learning

4 Keeping your cool How other cultures find relief from work stress

14

Destination Refresh Crossword Test your knowledge

Share Your Thoughts If you have any questions, comments or ideas for The Bridge®, let us know. Email us at marketing.box@oakstreetfunding.com or visit us on social media.

Contributing Editor Sharon Robbins Art Director/Designer Aidreen S. Hart Graphic Contributor Beth Winchell The Bridge is a newsletter produced by: Oak Street Funding 8888 Keystone Crossing, Suite 1700 Indianapolis, Indiana 46240 844-343-1411 Loans and lines of credit subject to approval.

Potential borrowers are responsible for their own due diligence on acquisitions. California residents: Loans made pursuant to a California Department of Business Oversight, Finance Lenders License (#6039829). The materials in this paper are for informational purposes only. They are not offered as and do not constitute an offer for a loan, professional or legal advice or legal opinion and should not be used as a substitute for obtaining professional or legal advice. The use of this newsletter, including sending an email, voice mail or any other communication to Oak Street, does not create a relationship of any kind between you and Oak Street.

© 2019 by Oak Street Funding LLC. All rights reserved. Any duplication without prior written permission is strictly prohibited.

Oak Street Funding assumes no responsibility for the conduct or content of the ads, promises made, or the quality/reliability of the products, services, or positions offered in any advertisements or websites. Oak Street Funding does not make any representation as to the accuracy or suitability of any of the information contained in any third party advertisements or websites. Third party advertisements and links to other websites where goods or services are advertised are not endorsements or recommendations by Oak Street Funding of the third party websites, goods or services.

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www.oakstreetfunding.com

LETTER FROM THE FOUNDER/CEO

Destination: REFRESH

As leaders, we all have incredibly full plates. We need to balance operations, production, reputation, excellence, and opportunity along with the back office responsibilities of human resources, accounting, and IT. Somewhere between keeping the company running and finding new sources of revenue, our business’s current state of existence may be overlooked or we continue to do the same thing year after year. But oftentimes, the best opportunities to grow and improve may result from an overhaul.

For this season’s Bridge magazine, “Destination: Refresh,” we focus on what we can do to enhance what we already have. Restore the process.

Work smarter, not harder. Clean house. Think differently. Whether you need to find time to reenergize during your work day, analyze your processes prior to a valuation, or find ways to maximize your team’s performance, investing time to invigorate your company and your team will produce renewed results.

As a business owner and leader, we see the need to periodically relook

Free Webinars on Demand

Our resources are packed with expert advice and best practices.

and refresh on a pretty consistent basis. This may require an investment to leverage opportunities uncovered by your review. Here at Oak Street Funding we understand and provide advisory firms with debt capital for

oakstreetfunding.com/webinars-ria

these opportunities, as well as acquisitions, successions, working capital, and more.

Wishing you future success.

Rick Dennen,

Founder, President & CEO

Oak Street Funding® Vision Statement To be the long-term market leader in commercial financing by delivering unique and diverse product offerings through cutting edge technology and exceptional employees that drive an EXCELLENT client experience.

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your How other cultures find relief from work stress.

Deadlines and goals to meet, performance expectations to measure up to, partners and employees to get along with, hectic commutes, technical difficulties, worries about business success, the struggle to achieve a decent work/life balance — it all adds up to stress.

If you work in a high-pressure career or industry, you already know what it feels like to experience occasional bouts of job-related emotional, mental and sometimes even physical distress. A small amount of stress can actually be a positive motivator, keeping us excited and on our toes, but studies show that Americans are putting in longer hours and working harder now than ever before, and it’s definitely taking a toll.

The costs of stress

According to statistics from the American Institute of Stress, more than 80 percent of workers report feeling some amount of stress while on the job, with workload and people issues cited as the biggest stressors. Work-related stress also costs U.S. employers and industries $300 billion annually through accidents, absenteeism, employee turnover, medical and legal liabilities, and workers’ compensation payouts.1 Work stress is personal. While certain professions and geographic job locations do tend toward more inherently stressful conditions than others, your own abilities to manage and cope with stress are the main factors that determine the degree to which it affects you.

How other countries address stress

Employees around the world sometimes seem to do a better job than Americans at finding ways to escape the grind and lower their stress levels.

Take a look at how other cultures unwind.

• Paid vacation is the rule and not the exception in many European Union countries, and workers don’t feel the least bit guilty about using it wisely. In France, for example, labor laws dictate that employees receive a certain amount of paid leave for each month worked, totaling around five weeks each year, in addition to

time off for almost a dozen national holidays.2 This is a stark contrast to the workaholic mindset that exists in the United States, where in 2016 and in 2017, more than half of all working Americans ended the year with unused vacation days left on the table.3 Be sure to take your time off. Leading by example will show your team that vacation is not only a reward, it is a necessity so they don’t get burned out and can come back to work fully recharged.

• Some shops and businesses in Spain may close in the afternoons (particularly during the summer season when the weather can be extremely hot) for the traditional “siesta” — an hour or two to nap and relax, although changes in law and the economy have led to a decline in this cultural practice in recent years.

• In Denmark, the “hygge” lifestyle trend helps soothe frayed nerves through creating cozy environments that nurture frazzled spirits by focusing on pampering and self-care.

Look for ways you might be able to transform your home, your office and your desk into safer havens with items, colors, accessories and materials that evoke feelings of comfort and security.

• The Japanese are proponents of “forest bathing;” spending meditative quiet time in nature has been scientifically proven to lower stress levels, heart rate and blood pressure while boosting overall well-being.4 • A lthough yoga is performed all around the world, the practice is believed to have originated in India. In addition to providing physical health benefits such as increased strength and flexibility, improved muscle tone and cardiovascular support, regular yoga practice has been found to lower blood pressure and stress levels, promote a sense of calm, and support deep sleep and relaxation.5 • Another holistic approach to stress relief and natural healing – massage therapy – dates back thousands of years with roots in Indian, Egyptian and Chinese cultures.6 Today, people the world over enjoy various forms of therapeutic massage to relieve stress, ease muscle stiffness and lower anxiety levels.

• A long the same lines, Russians and Finnish residents attest to the power of sauna; relaxing in small wood rooms at high temperatures to sweat out toxins, sometimes followed by a bracing plunge into freezing cold water to boost circulation.

• Chinese feng shui principles aim to harmonize living and working conditions through environmental aspects that take building orientation, energy flow and the incorporation of natural elements into account. Read up on how it works, then take a look at your desk or office to see what kinds of changes and improvements you might be able to make. Something as simple as moving your desk to a different position, hanging some subject-specific artwork on the walls or tackling those piles of clutter in the corner once and for all may just help you breathe a little easier on the job.

Other ways to reduce work stress Let’s face it: Workplace stress is never going to go away completely.

The good news is there are plenty of ways to re-energize and re-invigorate throughout the day and away from your work setting so that you can come back refreshed, renewed and ready to face new challenges.

First, use your vacation days. Time off away from work provides healthy perspective, giving you time to rest, relax and bond with family and friends.

On the job, build mini-breaks into your daily schedule as often as possible.

Make sure you leave your desk for lunch or take a quick 10-minute walk in the middle of the afternoon. Consider offering your employees access to an on-site fitness center, and encourage them to use it to get some regular exercise. Also, prime your body to combat stress by making sure you’re getting enough sleep and sticking to a fairly healthy diet as much as you can.

You’re going to feel a whole lot better eating a fresh salad or sandwich for lunch than loading up on coffee and candy bars from the vending machine.

Provide and take advantage of employee-assistance programs, or mental health benefits that are available through your insurance policy. These services and supports are completely confidential and equip you with coping tools that can make a huge difference in

how you feel about your job.

Do your best to switch off and leave work stress behind when you end your day. Don’t let lingering worries carry over into your home life; try to focus on being present with your family at dinnertime, not that stack of bills in your in-box that still needs processing.

Prolonged work stress over time may manifest in physical symptoms such as frequent headaches, upset stomach and insomnia, and can contribute to other more serious health conditions. If you’re experiencing these or other worrying health symptoms, see your doctor for a checkup.

If work continues to chronically impact your mental, emotional or physical health in negative ways, you may want to consider a change, like delegating more responsibility, retiring, or making a complete career shift into another industry. Even taking small steps like signing up for a professional development workshop or continuing education class can prove empowering and breathe fresh life into your career.

Talk to a Human Resources contact you trust or a career counselor to learn more about your options.

Footnotes 1 https://www.stress.org/workplace-stress 2 https://iclg.com/practice-areas/ employment-and-labour-laws-and-regulations/france 3 https://fortune.com/2017/05/23/ vacation-time-americans-unused/ 4 https://qz.com/804022/ health-benefits-japanese-forest-bathing/ 5 https://www.yogajournal.com/lifestyle/ count-yoga-38-ways-yoga-keeps-fit 6 https://www.allalliedhealthschools.com/massage-therapist/ massage-therapy-history/

If spring is for initiation, summer is for relaxation, and winter is for celebration, then what is the purpose of fall? This question is likely to conjure up images of turkey dinner, pumpkin pie, and Charlie Brown, and while those things may be enjoyable, they hardly represent a seasonal theme.

There’s no autumnal equivalent to spring cleaning or a New Year’s Resolution, and the truth is that – though comprised of many individually good components – fall is, to many, just another stretch on the road to the next year.

However, it doesn’t have to be; autumn, like so much else, is what you make of it. One possibility, evident in this “back-to-school” season, is education. Though self-improvement is not always in itself an effective motivator, this theme is fitting precisely because not everyone will find it alluring; let those who don’t spend the season resting on their laurels. Fall is the time for the go-getters of the world to improve, and the key to that is to always be learning.

Step 1: Evaluation

The first step toward any sort of education is to determine exactly in what areas one needs improvement. Evaluation – whether of oneself or others – is a soft skill in which many otherwise-successful people are lacking. Mastering the field of evaluation is doubly beneficial for our purposes: in addition to being the foundation on which adult education is built, it will itself constitute the learning of an important life skill. But what is the root of evaluation? The answer is simple honesty.

Though it should never pass into the realm of harshness, evaluation should absolutely always be honest and unflinching. Set an objective, a reasonable standard by which to judge your performance, and do just that. Be sure to keep in mind that which you are doing well, but avoid making excuses. Do not wait until Thanksgiving dinner to consider everything that’s being done wrong; being honest will be much more beneficial, and much quicker.

Step 2: Exploration

From there, the next step toward education is to set a course of action. In many fields, periodic education is a commonly required practice and this requirement is, if nothing else, certainly an effective motivator. Difficulty arises, however, from the extensive diversity of these educational programs, which are almost as numerous and varied as the companies which offer them. Whereas one company may offer a veritable array of courses, another is just as likely to offer few or none. In any event, one never knows until one checks, so doing just that is recommended.

For those without any required courses, or for whom such courses were unsatisfactory, the first attempt at seeking out education will likely consist of a quick internet search. Though this course of action may have some success, the results are likely to vary widely depending on the subject. For those whose searches are less than successful, inquiring to one’s management or human resources department about additional education might present other opportunities. You’ll likely be surprised about what your company can offer you, as well as its willingness to pay for it.

Step 3: Motivation

Though these tactics are all well and good, there is one aspect of education which stands above all others in its importance: motivation. Simply put, motivation is the determiner of whether learning falls under self-improvement or chore.

Framing education with effective goal-setting will certify that you never lose sight of your prize. Whether your goal is to learn a new skill, improve in your weak areas, or simply to get a head start on what will be everyone else’s New Year’s resolution, don’t fall like the leaves into the rut of tedium that so many do this time of year.

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We’ll get you there. Stay current.

Visit us at oakstreetfunding.com/events or call 844.343.1411.

Empower 2019

IMPACT®2019

Wells Fargo FiNet Forum

MarketCounsel Summit

Bonita Springs, FL • October 21-23, 019 Rick Dennen, President & CEO Susie McEuen, VP Strategic Markets Sales

St. Louis, MO • November 7, 2019 Susie McEuen, VP Strategic Markets Sales

San Diego, CA • November 4-7, 2019 Bruce Warren, VP Strategic Markets Sales Adam Farag, VP Strategic Markets Sales

Miami Beach, FL • December 9-12, 2019 Kirsten Petras, Director of Sales Bruce Warren, VP Strategic Markets Sales 8 4 4 - 3 4 3 - 1 4 1 1 • w w w.o akst reet f u nd i ng .c om | 7

:industry news

Can anyone prevent cybercrime?

Eschew the traditional growth path

In light of recent and widespread data breaches, advisors should instruct their

Advisors are constantly

•S ign up for transactional alerts: find a bank or credit card provided who alerts

seeking new ways to scale their firms, beyond the typical strategies like adding

clients to take proactive steps to prevent falling victim to cybercrime.

•B eware of phishing scams: breaches often include emails and phone numbers, so don’t provide any further personal information or money to an unrecognized contact you to all transactions •P ractice health password hygiene: the less obvious and more secure, the better

clients, increasing AUM, and

•K eep tabs on your credit report: free options exist to monitor credit reports

heightening productivity.

•F reeze your credit report: prevents criminals from opening new credit

In today’s society, there are

accounts

infinite opportunities to growjust think outside the box.

Less well known- but gaining

Push past your plateau

traction- and imaginative

Advisory firms, after enacting strategies and

tactics for growth include:

seeing some good growth, may find themselves

offering global, curated

plateauing. But as the title of a Marshall

experiences for clients;

Goldsmith book suggests, “What Got You Here

building proprietary software

Won’t Get You There.” Fortunately, advisors can

to get the job done your

push beyond the plateau with 3 steps.

way; hiring the best talent and serving a broader client base with a virtual firm; and

1. Rethink: Don’t compare yourself to the competition or follow the rules. Instead, set your own.

2. Retrain: Using the same pitch or accepting any client may not always be the best

helping clients with charitable

growth strategy. Instead, get into better habits, set new goals, and push to stay

giving opportunities.

on track.

3. Redesign: Update your growth plan. Write it down, record it, and create an action plan for accomplishing the vision outlined.

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Pump up profitability with a new niche Enhancing profitability is one of the top fee-based advisors’ concerns, and differentiation to attract new clients in an ever-increasingly competitive environment can be tricky. Keep in mind that 38% of investors do not work with an advisor- that’s a lot of potential new clients. Nearly 6 out of 10 DIY investors prefer to manage their own assets, yet only 2 out of 10 are likely to take action to revise their investment strategy in the next 12 months to get ahead of anticipated adverse effects on their portfolio. Advisors can engage DIY investors and gain new clients if their trust is gained. Advisors can do this though: putting clients first, providing holistic financial planning, protecting

Older employees have valuable

assets against market risk, and protecting against outliving savings.

experience and relationships.

Are you listening?

Younger generations embrace tools and technology. Both are

Studies suggest that people spend 70-

important to a successful firm and

80% of their day engaged in some form

retaining multigenerational wealth.

of communication, and 55% of that time

And with open-mindedness and

is devoted to listening. But are advisors

collaboration, generations can

listening to their clients as closely as they

learn from each other. While

should? After all, 44% of Americans think

cultivating age diversity within

that discussing their financial situation is

a firm and among a client base,

more difficult to discuss than death, politics, and religion. Follow these 4 pillars of active listening and see what you can learn and how you can help your employees and clients:

consider important models, tools, and products including: • Fee structures

1. Seek to understand before you seek to be understood

• Technology

2. Be nonjudgmental

• Values and giving

3. Give your undivided attention to the speaker 4. Use silence effectively

Age diversity among employees drives firm value

• Balanced approach

https://www.financial-planning.com/news/5-innovative-strategies-to-scale-a-practice https://www.kiplinger.com/article/credit/T016-C000-S003-capital-one-data-breach-avoid-identity-theft-fraud.html https://www.thinkadvisor.com/2019/08/01/three-steps-to-better-growth/

https://www.fa-mag.com/news/new-pathway-to-profitability--engaging-diy-investors-50872.html?section=40 https://www.wealthmanagement.com/business-planning/how-firms-can-cultivate-age-diversity https://advisornews.com/innarticle/active-listening-helps-clients-feel-valued#.XUM91_JKj4Y

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A Quick 10-Step Business Tune-Up

Take a closer look at your business and find ways to improve.

Whether you’ve started to think about selling or merging your business or are experiencing flat to little growth, it’s always a good idea to look for ways to do things better.

Taking a critical look at your current operations and finding ways to finetune what you do will not only provide immediate rewards, it will also help you increase the value of your business.

The ten steps we’ve outlined here are important for businesses that are contemplating a sale or merger, but they’re every bit as applicable to businesses that want to continue operating for the foreseeable future.

The end of the year is a great time to take stock of what you’re doing, make a plan, and put improvements in place.

1 Take a fresh look at old plans

Far too many business plans and other strategic documents simply gather dust. After spending countless hours developing plans, the owners rarely if ever pull them back out for a review.

Take a day to pull out your plans and look at them with fresh eyes. While your business and your market may have changed since you developed your plan, odds are there are some excellent ideas you’ve never pursued. You can implement those ideas (or today’s equivalents), or you can completely update your plans. Either way, taking those great ideas and putting them into action can help you grow your business. 1

2 Boost your profitability

One of the easiest ways to increase profitability is looking for areas where you can cut costs or create efficiencies.

Sometimes it’s just a matter of looking at longtime practices and processes in a new way. Perhaps you could purchase heavily used items in bulk. Maybe you’re printing copies of documents you don’t really need or that you could save digitally, so you’re wasting ink and paper and taking up storage space. 2

3 Increase cash flow

Profits are important, but cash flow is an important factor to consider.

Strong and growing cash flow is a sign your business has been well-managed, and its customer relationships are healthy. Historical results are important. 3

4 Measure performance

You don’t know how healthy your business really is – and you can’t prove it if you’re not properly measuring it.

Develop key performance indicators (KPIs) that are appropriate for your industry and businesses like yours and track them religiously. Good KPIs not only tell you when things are going well; they can provide an early warning of trouble that’s ahead so you can take timely corrective measures. 4

5 Choose metrics that matter

Tracking the KPIs that matter most to prospective buyers or merger partners will help you get the most value when the time comes. Learn what matters to them and add those factors to your tracking. It may also be worthwhile to obtain regular thirdparty audits or other financial reviews.

Getting outside validation can be a wise investment. Not only will that tell a prospective buyer that you pay attention to what’s important, but it will increase their confidence in your books and the story they tell. 5

6 Romance your customers

You don’t mean to take existing customers for granted, but that’s what tends to happen. When people are prospects or new customers, you go out of your way to treat them well and let them know how much you value their business. Fast-forward several years, and you assume they’ll always be customers, so you may not pay as much attention – until they leave for a competitor. Rekindling your

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relationship with existing customers will keep them around, so you’ll continue to gain revenue from them.

You may also discover they have other needs you can address or products to cross-sell, further strengthening the relationship and increasing revenue. 6

7 Keep employees happy

Your employees are a critical element in the ongoing success of your business, and if you’re contemplating a sale or merger, the new owner will likely appreciate a stable workforce that will stick around at least through the transition. Talk with your team to gauge their satisfaction. Benefits such as equity ownership with vesting over time and bonuses based on the profitability of the business will encourage them to work harder. But first be sure you talk with them to learn what matters most. You may think a benefit is appealing, but if they don’t, it won’t do you any good. 7

8 Step up marketing

When was the last time you considered going after a new market or trying a different marketing channel or approach? Explore ways for expanding your marketing efforts. In the short run, you may see increased revenues, but more important, a prospective buyer or merger partner will find a growing business more attractive and valuable. 8

9 Update your website

Your financials are important, but so is your company’s image, and one of the first places a prospective client, buyer, or merger partner will go is to your website. Like it or not, what they see will color what they think of your business. If your site is dynamic, contemporary, and professional, that’s how they’ll see you. If it’s clunky or outdated (with telltale signs like a “news” page that hasn’t been updated

The end of the year is a great time to take stock of what you’re doing, make a plan, and put improvements in place. since 2016), they may wonder how serious you really are. 9

10 Clean up the place

Building off that concept of first impressions, does your office look like it hasn’t been cleaned in a month or redecorated in the last decade? Are old forms and paperwork stacked up all over the place? Does everyone sit on broken-down office chairs? Is there a 2012 Chamber of Commerce decal in the window? No matter how well managed your business may be, if it looks like a mess, prospective buyers and customers are going to wonder if they can trust you. Even a fresh coat of paint can make a significant difference.

Cleaning up and redecorating can also boost your team’s morale. 10 Footnotes 1 Rodriguez, George, “10 Ways to Improve Your Business Operations,” powerhomebiz.com, April 4, 2013.

2 House, Bob, “6 Ways to Increase the Value of Your Business Before You Sell,” inc.com, August 26, 2014.

3 Carvalho, John, “How to Increase the Value of Your Business – Even If You’re Not Selling,” divestopedia.com, August 29, 2018.

4 Rodriguez, op. cit.

5 Christensen, Carl, “How to Increase the Value of Your Business Before Selling,” investmentbank.com, undated 6 Rodriguez, op. cit.

7 House, op. cit.

8 Rodriguez, op. cit.

9 House, op. cit.

10 House, op. cit.

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Get to Know DAN STACH

Dan Stach is a Portfolio Manager at Oak Street Funding.

If you obtain a loan from Oak Street Funding, you may work with Dan or one of his colleagues. Here he describes his role and the process after a loan funds.

How do you build a relationship with a new Oak Street Funding client?

Because of this, I sometimes encounter unintentional It starts a few days prior to funding. There is usually a lot of resistance. People can be resistant to our process for two reasons: activity because the loan officer, underwriter, and borrower are 1 Clients aren’t used to our process. When someone isn’t used busy wrapping things up. My relationship starts with a client to something, there could be some initial resistance. Also, during the pre-close call. many clients are extremely busy and adding something to Basically, I work with a client to service their loan post-closing. their day may seem troublesome.

Going through the first month or two of a new loan can create a bit of anxiety. It’s a transition time where I take the opportunity 2 Clients don’t see a benefit to our process, as in “you’re asking for these things, and you say it’s required, but I don’t to get to know each borrower. Questions go both ways, such as think it’s worth it.” “what can I do for you, what do you need to send me.” I build that give and take relationship and get into a monthly routine That’s where I have to describe the benefits and make our with each borrower, and I will always answer any questions or process as easy as possible so clients can understand how our requests a client has. process does benefit them.

What are some common questions you answer What do you like about being a portfolio manager? for clients?

I love being able to develop that relationship with someone, A big part of what I do involves helping clients by answering get to know them personally, and help them as much as I can. their questions, such as: That’s one of my biggest focuses- to help people. If it’s going to • How does the process work?

• What is a cash collateral account?

• What is my rate and how does it change?

• What are my terms and maturity date?

• Did you get my deposit?

• When will I get my sweepbacks or commissions?

What are some misconceptions you believe clients may have about the process post-funding?

Sometimes I think clients feel like I’m going to be a pain, like I’m just this guy who calls to say, [bangs table] “Give me these documents! I need them now and I’m not going to listen to you!”

This is often the initial expectation; but that is not me at all. I care about each client’s business, and I care that they are doing well.

I‘m not here to be the “bad guy”, but I want to make sure all your documentation is submitted on time.

I think people have these negative connotations because as consumers, anytime we’ve had an issue on an auto loan, for example, we’ve had to find contact information online, and call a random customer support person who doesn’t really help.

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make their day better, their life easier, then I want to do it. In addition to building client relationships, I enjoy digging into the ins and outs of a loan- terms, loan documents, analyzing data, understanding a client’s business, and projecting future successes.

I also enjoy leading and working with my team here.

What do you want a potential client to know about working with you?

I want them to know that we are here to support them. Sure, we want to sell loans, but this goes hand in hand with our desire to see you grow and the industry grow as a whole.

Just know I care and want every client to do well. I can guarantee that a client’s customer service experience with me will be better than 99% of their experiences anywhere else. Any client can pick up the phone and call us and they will reach someone immediately nine times out of ten, and if not, they will get a response within a couple of hours.

Clients are the most important thing. They aren’t just another number to us. Each client will have a totally personalized experience.

h s e r f e R When you received Jerry Peterson’s call this morning, you were stunned. He’s been a client and friend for years, but he was letting you know he’s moved his business to a competitor’s firm. No hard feelings, you understand.1 Your first reaction may be anger toward the competitor, or even Jerry, but it’s more likely you should blame the face in the mirror. When you lose a client, you may not have done anything wrong. You just didn’t do anything to outwardly convince them you wanted to keep their business. If current clients feel neglected and one of your competitors makes them feel wanted, they may switch.

Losing a client hurts your ego, but it has a bigger impact on your firm than you may realize. Experts know that it costs six times more to pick up a new piece of business than it does to gain additional business from existing clients. That makes sense, because you don’t have to spend time educating existing clients about who you are and what you can do. What’s more concerning, though, is that 64 percent of customers who don’t buy from businesses again do so because of what they perceive as indifferent treatment. 2 That’s why it’s so important to make deliberate efforts to re-engage with your clients regularly, so they know you value their business.

For many businesses, one approach at staying connected was inviting key clients out for a round of golf. But as the demographics of your client base change, that’s not always the best approach. With an activity such as golf, you may be missing out on building relationships with non-golfing clients who probably represent an increasing share of your book of business.

One of the most effective ways to maintain and strengthen client relationships is to show your appreciation by delighting them in unexpected ways. Keep in mind that what delights you may not be what’s meaningful to your clients, so you may want to talk to other people in similar demographic groups for ideas.

Among the ideas you might consider are: • Giving a meaningful gift. (Avoid items such as alcohol, flowers, or anything with a religious or political slant.) 3

t n e i l c s p r i u h yo tions rela

• Inviting them to lunch or dinner at a restaurant they like.

You (or your staff) can learn about their favorites through casual conversations. 4 Perhaps you can tie it to their birthday month. You would be surprised at the number of people who are not remembered on their birthdays.

• Donating to a charity or other organization that’s important to them (in their honor). 5 • Scheduling a free workshop with an expert on a topic like estate planning for a small group of clients. 6 • Sending a copy of a favorite book you’ve read, with a personalized note. 7 • Planting a tree in their name through a group like the Arbor Day Foundation. 8 Don’t feel obligated to tie your contact efforts to a certain time of year, such as policy renewals or holidays. The efforts that have the greatest impact are those that are unexpected.

Think of how you feel when you receive something nice that you weren’t expecting and work to create that same feeling among your clients. 9 Re-engaging with your clients is easy, and it’s hard to think of other efforts that offer as much of a return on your investment.

Best of all, you’ll get fewer of those surprise phone calls from departing clients.

Footnotes 1 This story and name are merely fictitious. No identification with an actual persons or situation is intended or should be inferred.

2 “Go On; Spoil Your Customers,” advice4business.com, July 21, 2014.

3 “How to Gift and Spoil Your Clients,” showit.co, undated.

4 Wayshak, Marc, “9 Tricks to Re-Engage Your Customers for Better Retention,” hubspot.com, undated.

5 Parker, Tim, “24 Ways to Thank Your Customers and Employees,” quickbooks.com, undated.

6 ibid.

7 Wayshak, op. cit.

8 Parker, op. cit.

9 showit.co, op. cit.

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ACROSS 4. goodwill

ACROSS: 4. charity 8. hygge 10. indifferent 13. exploration 14. motivation 15. cash flow 17. client 18. Thanksgiving 20. Egyptian DOWN: 1. account 2. .billion 3. siesta 5. Arbor 6. evaluation 7. KPIs 9. portfolio 11. forest bathing 12. retiring 16. yoga 19. happy

8. creating cozy environments 10. not favoring, not unfavoring

Click here to fill in the crossword digitally.

13. investigation; discover 14. what’s my _________?

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15. liquidity indicator

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2

3

5

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17. customer

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9

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18. Fall holiday 20. Cairo resident

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DOWN

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1. cash collateral __________

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2. stress costs $300 ______ 3. afternoon nap

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5. _______ Day Foundation 6. examination; measure 7. business goals/metrics, abbr.

9. collection of accounts

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11. quiet time in nature

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12. ending career 16. balance and flexibility practice 19. sad antonym

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Grow Smarter 10 Steps to a Better Acquisition You’re a smart and ambitious practice owner ready to grow your practice and build your legacy. Acquisitions are a great way to grow fast, but only if they are done right.

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OAK STREET FUNDING IN THE COMMUNITY

In June of 2019, Oak Street Funding hosted a free community event honoring military heroes and first responders to the 9/11 attacks. The featured speakers, best known as the “Horse Soldiers,� provided those in attendance a first-hand, riveting account of their experience fighting in Afghanistan and what it meant to them - then and now.

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