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Hosted by Financial Advisor Coach, Ray Sclafani, "Building The Billion Dollar Business" is the ultimate podcast for financial advisors seeking to elevate their practice. Each episode features deep dives into actionable advice and exclusive interviews with top professionals in the financial services industry. Tune in to unlock your potential and build a successful, enduring financial advisory practice.
Ray Sclafani (00:00.142)
you
Welcome to Building the Billion Dollar Business, the podcast where we dive deep into the strategies, insights and stories behind the world's most successful financial advisors and introduce content and actionable ideas to fuel your growth. Together, we'll unlock the methods, tactics and mindset shifts that set the top 1 % apart from the rest. I'm Ray Sglafani and I'll be your host. This may sound silly, but ditch the pitch.
Today's episode is focused around capability decks, their components, and how to bring one together that's powerful and impactful. You know, today with the digital communication in full swing, nearly all prospective clients are a lot more savvy than has always been the case. In fact, instead of a canned sales pitch or a fancy pitch book, clients today want to know what value you and your firm will add to their financial journey. With this in mind,
It is long overdue to ditch the pitch. mean, have you ever heard or witnessed a future client get genuinely excited to listen to your pithy 20 to 30 second elevator speech? Once you're referred or introduced formally to someone else, a far more professional and practical approach is to provide them with a framework of value, the actual benefits of working with your firm. This is where the capability deck comes into play. Advisors who have built billion dollar businesses consistently tell me,
their capability decks are the single most crucial marketing asset their teams have built. In fact, the best in the business actually collect competitor pitch books so they know how to refine and improve their own capability deck. A well-crafted capability deck isn't just a presentation tool, but it's also a dynamic document that serves multiple purposes in a variety of situations. In fact, there are five and I'll outline those in just a moment. This will communicate your firm's unique value proposition
Ray Sclafani (02:00.238)
clearly and consistently to different groups. The term pitch book conjures images of, at least in my mind, of aggressive selling, transactional relationships. By contrast, a capability deck showcases the depth and breadth of your firm's expertise and the value it delivers to others. It's less about selling and more about educating and engaging. an approach that's...
more closely aligned with the way evolving preferences of today's clients are seeking trusted, holistic, integrated advice rather than just a financial sales pitch. A capability that goes beyond traditional pitch books by focusing more on the outcomes clients can expect and your firm's unique processes. It communicates your business philosophy, the client needs your firm addresses, and the comprehensive solutions you provide. And not just the products and services
but also your intellectual process that's tailored for the kinds of clients your firm is built to serve. This demonstrates and amplifies your unique brand and your specialities. Most importantly, it reinforces your firm's value with existing clients and extends your brand to prospective clients and centers of influence. So capability decks are used in several ways and here are the five. First, it helps to foster client engagement. So,
In regular client meetings, you want to consistently reinforce the value your firm provides. This is a powerful reminder of the comprehensive nature of your firm, what you offer and how they align with the client's evolving needs. Let's not forget, most clients can't remember what they had for breakfast. So as your firm evolves and improves and their lives and needs evolve and improve, this just positions you front and center, ready, always and able to communicate what you and your teams do effectively.
Remember, you want to build a very unified and consistent approach across your organization, irrespective of which advisor is speaking with each client. There's great value in building this capability deck not only for the clients, but to keep the team on track. This ensures the clients and the team fully understand and appreciate the depth of your firm's expertise and the way with which you're framing your firm is clearly and consistently communicated.
Ray Sclafani (04:19.692)
The second reason for the pitch book and where you use this really effectively, at least we see this with the clients we're coaching is this also helps to empower client advocacy and generate new introductions from those advocates. So if you can arm these advocates of your firm with the tools they need to share your story and allow them to better act as advocates for your business, you'll generate better quality introductions of the ideal client type.
By giving these advocates the language to effectively introduce your services to their friends and colleagues and neighbors, you'll actually turn satisfied clients into these proactive brand ambassadors. And at ClientWise, we call these loyal client advocates or LCAs. The third purpose of this capability deck where you'll use it is frankly in prospective client meetings where you're looking to educate those potential clients rather than giving them the traditional sales pitch.
The capabilities deck helps prospective clients grasp the breadth of your services, your unique value, your unique processes, your intellectual property, and all of this fosters greater trust and confidence, which helps these prospective clients to make more informed decisions about working with your firm. The fourth reason for the capability deck and where you'll use this effectively is strengthening team recruitment and training. Now I mentioned this a little bit.
with the advisors in your firm and how they might use this as a training tool. So you build a unified client review strategy and education strategy with clients. But let's not forget all team members, whether you're attracting top talent or training and developing top talent, this capability deck is also going to showcase your firm's culture, values, and development opportunities within your organization. And this can be used as a recruiting tool. It will also serve as a comprehensive onboarding guide.
when new team members come on board to learn about the firm mission, vision, values, and processes, and what differentiates your firm from others in your field. And this ensures that all team members are aligned and communicating consistently with clients. And the fifth reason is this will help you with your professional relationships. know, most advisors are integrating their wealth strategies and moving on beyond just the investment management.
Ray Sclafani (06:39.372)
The investment management seems to be getting more more commoditized with each and every day. And what we're noticing in the RIA channel, especially is firms are looking to expand their services. They're introducing tax services, insurance services, banking services, helping clients with both the liability side, as well as the asset side of their balance sheets. And all of this expansion of services requires partnering with other trusted advisors. For example, you may not be preparing client tax returns. You may not be
the primary trust officer or banker or business valuation specialist when a client is looking to sell their business. But it's cultivating these stronger professional relationships through the education of these other trusted advisors and centers of influence on how your firm complements and integrates with what they provide within your wealth advisory context. This is a central element to building an integrated wealth advising firm. This fosters stronger collaborative relationships.
enhances referral and introduction opportunities, and ensures that these other professionals will actually position your firm effectively to their clients and the teamwork and relationship that's built is just amplified when you do this right. Okay, so let's talk a little bit about the components in your capability decks. There are eight essential components and I want to break these down. So as you're building your deck, you'll understand how to incorporate each of these parts.
and also provide a couple of resources if you want some help, some outside partners that maybe can help design the content, the language, because this might be a branding strategy as a small lift for some firms, but a bigger lift for others. So first, your capability deck should showcase why do you do what you do? Why is your firm in business? I want to draw some inspiration from Simon Sinek's book, Start With Why. You've probably read it or heard about it.
And it's essential to share your firm's mission and values by explaining the purpose that drives your business and why you and your team members are passionate about the work you do. This sets the stage for building relationships based upon trust and shared values and will resonate deeply with clients and team members. I'd consider even playing Simon Sinek's famous Ted talk called How Great Leaders Inspire Action. You'll see this in the show notes.
Ray Sclafani (09:01.038)
Play this at the next team meeting to reinforce this concept to make sure everyone is aligned with firm purpose. The second component is who are you built to serve? It's crucial to clearly define your target market and your niche in such a way so you attract the right clients. Advisors oftentimes focus everywhere. And the problem with the spray and pray approach is you never build a brand and an area of specialization. Mark Hurley,
wrote a series of white papers and studied this particular area quite well. And I think has identified early a big trend in specialization. In fact, I think we're only in the first or second inning of financial advisory practices, niching themselves into specialization, specialized marketplaces. So whether you focused on high net worth individuals, business owners, retirees, you want to be explicit about who your firm is built to serve and sharpen your message and services. Be positioned as a subject matter expert
for one or two or three particular areas. And depending upon the size of your firm, you can take on more than that, but you've got to really dig deep and differentiate yourself. You can't focus everywhere. So by saying no, you create space to attract more clients who are a true fit. Then there's clear messaging around your ideal client profile. That's naturally draws in those who resonate with your firm's strengths. So it's not just the niche, it's the criteria. know, are they individuals who are
well-educated, are they the kind of clients that will do their homework and follow through on the commitments they're making in your client meetings? Are they kind? Do they want you to know their next generation? So are these other attributes that are key beyond just, hey, what do they have in their bank account? Number three, you want to make sure that you're clearly articulating in your capability deck, the known needs of your clients. Now we're going to talk about unknown needs in just a moment, but there's a big difference.
You know, the client shows up and they know exactly what they need. Hey, I need to address income planning strategies. I need to talk about tax strategies for my business. I need help with the trust in the state and will. I know there's a change coming in this high net worth strategy and what the estate tax law is going to say. So I need some help there. Well, all of this, your understanding of these issues demonstrates that you get their concerns and you'll position yourself as a capable partner.
Ray Sclafani (11:23.01)
But you got to be articulate about these no needs. These are what the client knows they already need to do. These are the obvious ones. But number four in your capability deck are your unknown needs. This highlights potential challenges or needs that frankly, the clients may not have yet considered. The implications of sudden wealth, the complexities of intergenerational wealth transfer, the understanding of the intricacies of a company's stock option policy or retirement plan. All of this positions your firm as a
proactive and insightful subject matter expert. In fact, I've heard advisors tell me that they know the stock option plans, the deferred comp programs better than the HR departments that their clients are employees of. So when prospective clients see you understand all of these nuanced needs and know how to address them effectively, they'll actually be more attracted to your firm. Number five in your capability deck are your solutions.
Your firm solutions are not limited to just products and services. They should also include your unique process. One of my mentors is Dan Sullivan at the strategic coach. He calls this unique process, something that's truly differentiating. So your intellectual process, your intellectual property is about delivering value through a distinct approach tailored for specific client needs and those niches we just talked about.
whether it's investment management, risk assessment, legacy planning, your capability deck should comprehensively detail these integrated offerings and highlight how your unique methodology set your firm apart from everybody in your field. Show how you'll grow with your clients as their needs evolve and understand where they're headed and what they'll need from your firm in the future. In fact, by helping a client figure out what's around the bend,
because you're so steeped in serving those kinds of clients, they'll instantly trust and understand that you and your firm as a guide and a Sherpa can really help them avoid the potholes, but maximize a bigger future. Number six, you want to make sure in your capability deck that your unique client outcome oriented wealth management process is described that the methodologies, the process your firm uses to actually build financial plans and
Ray Sclafani (13:44.11)
take care of all the facets of financial planning, build investment portfolios, how all this comes together, retirement income distribution strategies. All of this might include your approach to all things related to financial planning or any of your own proprietary processes that set you apart from your competitors. Again, your integrated wealth management approach, client driven, outcome driven, unique and differentiated will likely include that unique intellectual process
that we've talked about as well. Number seven, you want to include in your capability deck, your team of other trusted professionals, both internally and externally. So introduce your team, highlight their expertise and their roles. If you collaborate externally with professionals like estate attorneys and tax advisors and business valuation specialists, include them to better showcase your holistic and integrated approach to wealth management. By the way, I'm not a huge fan of this term holistic.
but I hear advisors sort of define comprehensive, integrated, holistic, however you wish to describe what it is that your firm does in a truly comprehensive and integrated way, you wanna make sure you get that message across. Establish a network of other trusted advisors for your clients so they can tap into them from time to time. It also demonstrates that you work with your clients, other trusted advisors as well. And this kind of collaboration provides great benefit and value to the client.
I often hear when advisors do this effectively and include this part in their capability deck and they introduce this to clients and prospective clients, they often hear clients say, you know, I really don't like my accountant. I don't like my CPA. I don't like the estate attorney. Yeah, they're kind of helpful, but do you have one that you would recommend? So you want to be prepared with this laundry list of select professionals that you can tap into for the client benefit. Number eight, last in your capability deck is
Hey, what would clients expect if they were to work with you? End with an overview of the client journey. What is it like to become a client? What's the onboarding process look like? How do you continue to serve the client over time? All of this lifestyle, this client journey, as their life evolves, how you continue to support them and their family multi-generationally, this type of clarity sets future expectations and reinforces trust, especially
Ray Sclafani (16:11.842)
when you deliver on those promises. Okay, so how do you go out building one of these effective capability decks? First off, you want to identify your audience, tailor the content of the deck accordingly. You may serve multiple audiences. And so you want to be able to change out some of the slides based upon the type of professional perhaps that or client or prospective client you may be talking to. While the core message remains the same, the emphasis may shift just a little bit, depending upon who you're speaking to.
whether it's potential clients, advocates as well. Keep it client centric by always focusing on the client's perspective. In other words, less we and more you. Highlight how your services meet their needs, solve their problems and enhance their financial wellbeing. Again, speak about the benefits, not features of your firm if you know what I mean. Use clear, concise, compelling language and avoid jargon.
Industry jargon shows up in all these decks when not done well. Technical language that may confuse people or alienate your audience. You got to eliminate all that simple, relatable language will communicate your value proposition far more effectively include visuals, such as charts and graphs and infographics to make your content more engaging and easily understood. think visual aids can help break down complex concepts and keep your audience engaged. By the way, it's okay to have an appendix. So if you're really interested in those
periodic table of elements, the chart about what segment of the markets perform better year after year, or you like the tax charts or, you know, the current SMP over time. You put all that in the appendix. This capability deck should be eight to 10 to 12 slides at the most. And what you'll find is you're going to to regularly update the deck. It isn't a static document. In fact, when you do a capability deck really well, you build one that's smart.
and concise and direct and clear, but comprehensive, you may find that this is the organizational design for your website. You want to keep your deck relevant and practical. The best in the business will update their deck once a quarter. Why? Well, their team members are evolving and growing. There's career paths. know, Janie got her CFP and Billy got his charter private wealth advisor designation with the investment and wealth Institute.
Ray Sclafani (18:35.328)
and we actually have a new CFA on board and by the way, know, John Clime Mount Kilimanjaro and you know, we've, we've hired two more people onto the team. All of that is why you're constantly updating the deck. You want to tell a story, especially with clients, by the way, you know, that client meeting that always begins with, Hey, Mr. Mrs. Lubner, tell me a little bit about your family. How have you been? What have you been up to? And the client, you know, it's a great way to start off a meeting and you reconnect with that client.
And that's great to be able to say to a client, Hey, do you mind if I give you a quick update on what's been happening at our firm? And that kind of stage, when you set that foundation, all of a sudden, clients are really interested in the five or six minutes where you're giving them a little bit of an update about what's been going on with your firm. Again, team members, loyal client advocates, other trusted advisors, and prospective clients. These are all great reasons to use your capability deck wisely. Hey, if you're
thinking this is a great idea. Where do I begin? I may not be the best writer. I'm not really good at designing these kinds of decks. You're going to see in the show notes, there are a couple of AI generated presentation resources that might be really helpful for you. But I've also included in the show notes two firms I'd highly recommend if you're looking for good partners to build your capability deck. First would be Mary Beth Kuzmeski. She actually has a PhD. She knows her marketing stuff.
She's an actual marketing strategist and her firm does a great job serving the advisor community. She's a bestselling author of nine books in marketing and she's the founder and owner of Red Zone Marketing. And she specializes in strategies for standing out so that you can achieve measurable growth. The second firm is RRD. They can create unique and relevant content and beautiful capability decks that resonate with existing clients, prospective clients and other professionals.
Their process and pricing are seamless and transparent. But what I find sets them apart from many marketing firms is their institutional approach for the entrepreneurial advisor, who's obviously got to be wise about where to spend a bunch of money in marketing. They take like an agency approach, but tailored for the small business entrepreneur. So I think RRD or red zone marketing would be two firms to take a look at. know, a strong capability deck will be essential to differentiating your firm.
Ray Sclafani (20:59.328)
admits this crowded marketplace more than a sales tool. These capability decks are comprehensive documents that communicate your unique value proposition. Focusing on education and partnering rather than sales and transactions is an opportunity to foster deeper trust and long-term relationships, ultimately driving business growth and success. So in other words, ditch the pitch and embrace the capability deck. It's a simple step that can ignite
your ability to engage more meaningfully and build a strong foundation for sustainable growth. With each episode, we introduce a few coaching questions to get you to reflect a little closer and deeper on the content that we've shared throughout the episode. So there are three coaching questions perhaps to consider with today's episode. First, what capability deck do you use today? And how could you better create the process to enhance and update yours throughout the course of a year?
Second question is, in what ways could evolving client needs and preferences actually shape what you need to include in your capability deck right now? And the third question is a bigger question, but where do you invest your marketing dollars today? And how could you benefit from investing and building a more robust and useful capability deck that drives better unified communication with the team and with clients, but also helps you grow the business? Well, thanks for tuning in and that's a wrap.
Until next time, this is Ray Sglafani. Keep building, growing and striving for greatness. Together, we'll redefine what's possible in the world of wealth management. Be sure to check back for our latest episode and article.