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Chapter 2
Focus on Trusted Advisors

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If an advisor can differentiate by the knowledge and relationships that would allow the business being served to flourish, then the discussion changes when a competitor comes knocking, which they will inevitably do. Your competitor contacts a client and identifies current provider price point. If the client says I pay $250,000 for my annual services, the competitor may offer a $50,000 fee reduction; however, if the client explains his risks are lower, profits are greater, and his value increased by $5,000,000 last year, how many competitors can readily offer a 20-to-1 ($5,000,000/$250,000) return on the relationship? Very, very few.

Let's set the stage. A current, past, or future client has needs and wants. She or he has beaten the long odds and operates a thriving $125 million company. Has the company grown due to unique skills offered by its provider(s)? Or, have the providers grown their billings due to having the good fortune of serving a company that operates very successfully? Perhaps the company has mastered client, vendor, and staff relationships with a culture of empowerment, cohesion, and community. Maybe it has levered the knowledge of several clients, vendors, and key staff to develop a unique knowledge-based product or service.


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Equity Value Enhancement

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