Ep 173: Growing To $250M In 5 Years By Crafting A More Specialized Client Experience with Andrew Leonard
Apr 21, 2020
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Andrew Leonard, founder of Geometric Wealth Advisors, specializes in financial planning for top-tier management consultants. He shares how a single white paper propelled his firm to gain nearly $200 million in net new assets in five years. Andrew discusses the benefits of customizing financial experiences and the emotional challenges of working with analytical clients. He highlights the importance of niche strategies in cash flow planning, tax services, and the role of technology in enhancing client relationships.
Andrew Leonard's firm, Geometric Wealth Advisors, achieved remarkable growth by focusing on a niche market of management consultants, leveraging a targeted white paper for client acquisition.
The firm emphasizes an interactive financial planning process tailored to management consultants, using live presentations and simulations to enhance client engagement and understanding of their financial models.
Geometric Wealth Advisors integrates tax services into their advisory model, providing comprehensive financial planning that improves client convenience and fosters deeper relationships through collaborative partnerships.
Deep dives
Niche Focus and Rapid Growth
Andrew Leonard has successfully developed a niche advisory firm, Geometric Wealth Advisors, focusing on partners at top strategy consulting firms like Bain, McKinsey, and BCG. By catering specifically to high-income management consultants, the firm has accumulated about $250 million in assets under management from around 110 households in just five years. This remarkable growth can be attributed largely to a strategic marketing approach which included writing a targeted white paper that resonated with this unique client base. Leonard's expertise in this field has allowed him to generate substantial organic referrals and client trust, positioning him as a recognized authority within this niche.
Customized Financial Planning Process
The firm emphasizes a highly customized financial planning experience tailored to the needs of management consultants, characterized by live interactive presentations of financial planning models instead of traditional written plans. This approach is designed to appeal to clients who are trained to scrutinize financial models and projections, ensuring that the planning process is engaging and relevant. Leonard utilizes eMoney's Decision Center to simulate various financial scenarios, providing clients with a dynamic understanding of their financial independence and associated trade-offs. By quantifying these trade-offs, the firm aids clients in making informed decisions about major life choices and expenditures.
Leveraging Remote Engagement
Geometric Wealth Advisors operates largely in a remote capacity, servicing clients across the United States while maintaining a personalized touch through in-person meetings initially. The team, spread across seven states, ensures they can engage with clients from major metropolitan areas like Washington, D.C., and New York. Although the firm primarily relies on video conferencing and digital communication for ongoing discussions, this model has proven effective and aligns with the clients’ busy lives. The blend of traditional and modern delivery methods enhances their operational efficiency while also catering to a clientele that values convenience and flexibility.
Challenges in Attracting Talent
While the firm has thrived in attracting clients, a significant challenge has arisen in finding qualified financial advisors who can serve the rapidly growing client base effectively. Leonard emphasizes that the primary concern shifted from gaining clientele to identifying the right talent capable of meeting the specific needs of their niche. The hiring process is more complex, as the firm seeks career changers who not only understand the financial industry but can also relate to the client demographic. This specialized requirement drives the hiring strategy, as Leonard prioritizes advisors with relevant backgrounds over generic advisory qualifications.
Integration of Tax Services
Geometric Wealth Advisors has integrated tax services into their advisory model through a partnership with a CPA specializing in similar clientele. This collaboration allows for comprehensive financial planning that encompasses portfolio management, tax preparation, and ongoing consultations, all included in the clients' fees. By offering seamless integration between financial planning and tax services, the firm enhances client convenience and satisfaction while ensuring better outcomes. Leonard recognizes the potential for bringing tax services in-house as the firm scales, which may further improve the overall client experience.
Using Collective Buying Power
The firm leverages collective buying power by establishing partnerships with private banks and insurance providers to offer clients discounted rates based on their shared profiles. This model benefits high-income clients looking for competitive mortgage rates, effectively illustrating the value of the firm’s service beyond traditional financial planning. Leonard details how the cumulative savings on mortgages and insurance premiums often outweigh the advisory fees charged to clients, creating an attractive economic proposition. Such benefits not only solidify client relationships but also encourage referrals as satisfied clients recommend the services to their peers.
Andrew Leonard is the founder of Geometric Wealth Advisors, an independent RIA that oversees nearly $250 million in AUM for 110 client households. Andrew has settled into a unique niche, which ultimately propelled his firm to organically add almost $200 million dollars of net new assets in just five years—almost entirely from a single white paper he wrote for that niche. Today he joins the show to discuss what customizing the financial process and experience to a particular type of client really entails and how he managed to do so in such an effective way.
Listen in as Andrew shares the unique opportunities and challenges that accompany working with management consultants who are trained to analyze and scrutinize financial models and projections. You will learn about the live presentations he has evolved his practice to focus on, how he is able to connect with clientele that are based all around the country, and the benefits of focusing on a unique niche to accelerate your career.
