High net worth individuals In my recent guest lecture on selling to high net worth individuals (HNIs) I stressed on recognizing differentiation. Small start-up businesses usually longed for the attention of HNIs. Whether the entrepreneur locks in an HNI as a investor or as a customer, the amount of influence that the HNI would possibly pass on to the business could be tremendous.
HNIs are defined as individuals who have more than US$1 million in liquid assets, not including his primary residence. From both investment and sales perspectives, the HNI would ask the question, “ Why must I involve?”
Before meeting the HNI the entrepreneur should prepare himself for two possible scenarios: he may either get a straight rejection without much ado, or, he would need to prepare answers to a string questions.
Respect for other people’s values
From the financial side, profits and return on investment are definite. When profits are a certainty, the next question would be what is the level of returns that the HNI is look for? These are questions which cannot be left unanswered. These answers cannot be found in the entrepreneur’s balance sheets. The HNI’s financial background and his pattern of investments could produce some insights. The entrepreneur would need to conduct a background scan on the HNI before setting the first appointment.
Google provides much public information that one can sieve through for answers to questions such as what would draw the HNI out of his hermitage?
In one occasion, one of the directors of a company had to bring the contract of appointment to Hong Kong in order to recruit a Malaysian working there. There was no assurance that the new recruit’s presence could bring in millions for the company. What was important was the demonstration of respect for what that person stood for and his values.
Personal brand strategies
Individuals, too have brand strategies, particularly with women. From the costume jewelry she adorns and the absence of loud beads and bobbles should signal one’s attention to her meticulousness in execution, albeit in the office. An entrepreneur who intends to bump his way through start-up would not interest an investor of this character.
On a personal note, I am rather unkind to excuses. Staff were always advised to iron out excuses before coming to me for variations in specifications and time lines. When faced with petty arguments, my first reaction would be to walk away. I do not spend time on such activities.
People problems in organizations are the biggest obstacle to business development. An employer’s attention to the values of his staff and maximizing them to the organizations’ advantage is a skill easier said than done.
Work environment
When a room was carved from somewhere where no room could possibly have been built, for the new Director of Graduate Business School, it was the talk of the institution. After 30 months of progress and quick expansion, the CEO’s bold step in matching environment with the personal qualities of his choice of candidate paid off handsomely.
Bosses often overlooked the work environment of employees of potential. My personal experience caused me to use my car booth as filing cabinet. But that was because I had to manage operations in different towns. Back at the headquarters, I had the luxury of working till well past midnight or coming in as early as 5a.m. in the morning.
Offices practicing open concepts leave very little room for confidential discussions. I assigned a room to a HR executive but not to the credit control manager. The complaint went all the way up to the Group MD. My explanation was very simple: it would be a waste of time for the HR executive to keep walking in and out of small meeting rooms to conduct first interviews. Furthermore, she dealt with confidential information throughout the day. On the other hand, the credit control department was in a controlled location where security of information was assured.
During my first visit to Silicon Valley in the US, I came across an office which remained open 24 hours in order that the trends of thought and innovation of the programmers could flow unrestrained.
Breaking out of traditional
In UPS, delivery precision was crucial to the company’s bottom line. The human resource philosophy to managers across the company stated, “ How UPS handle packages starts with how to handle its people”. The company created “preferred customer associates” - managers with team-mates to serve special groups of customers. A local logistics company followed this policy very closely. All his customers were special. His service became a “personalized” service to a handful of special clients.
At the service provider’s end, Management need to condone to the non-conforming behavior of this group of employees in order for them to meet the special clients’ peculiarities. McKinsey called such a step breaking out of primitive tools in management.
This also outlawed cloning within the organization. In order to succeed under such environments, companies need to quickly identify the people with such values and then, whether as employer or partner, will need to respect their values.
Selling perfume to a lady of lace
Perfumes are a lady’s companion. Blue Grass? Pleasures? Love in Paris? What has she on her dressing table? Besides the scent, external appearance of the bottle is equally important. Would it be the gold lettering on black? Could it be the pair of doves in flight in Nina Ricci’s L’Air du Temp? Hermes’ 24 Faubourg puts it irresistibly. “Where sensuality and feminity live side by side”. If you have identified feminity as the key, would you offer this lady of lace the scent of raw hide?
