The Perfect RIA 5 Business Lessons Learned From Disney World [Episode 16]
Although Matt and Micah realize that vacation is a time for much needed R&R, they couldn't help but notice the strong business practices of Disney during their time at Disney World. This episode is the product of their seizing an opportunity to appreciate some intelligent business principles at work. This episode is thus solidified around 5 central tenets from the Disney World business model that were gleaned during their vacation.
----According to both Matt and Micah, the five biggest business takeaways are as follows:
[#1 Voluntary Transactions]
- Disney World is expensive, but they are completely transparent with just how expensive they are. They even have shirts that say "the most expensive day ever." What this creates for those in the amusement park is almost a willingness to participate in the expensive nature of the park. Disney World promises a magical experience with an above average price tag; the biggest part of the experience is willingly forking over the money and getting that return of value that is promised. This is directly applicable to your practice.
[#2 Paid Prospecting]
- Once you pay the cover charge to get inside the amusement park, everything else still costs money. And every ride ends in a gift shop, as Micah states. They really don't give you anything for free. This is directly applicable to advisors who set up introductory meetings for prospecting and who stick to their rules about pricing. After introductory consultations, you won't throw free stuff to the client to get them on board, you demonstrate your ability to provide the client value, and it will cost commensurately.
[#3 Saving Clients' Time Through Skillful Guidance]
- As the episode explores, there are expert guides one can hire at Disney World who walk you through the park and who know the system well enough to provide you the most rides, attractions, and the most efficiency for your buck. Just like your advising practice, one should be a comparable guide for clients.
[#4 Increasing Pricing]
- It is well-known that Disney has no qualms about increasing their prices to line up with their need for profit and growth; so too you need to increase prices to meet goals and to fully bring the quality of work needed for your clients.
[#5 Don't Budge]
- Plain and simple, there are rules in place at Disney that are completely enforced. So too one should not bend to the whims of clients in your practice. Prices shouldn't drop, exceptions should not be made. Communicate to prospect and clients that your business model is concrete and its practices unwavering.
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Matt and Micah's Action Items
- Be aware of what you need to charge to make 50% profitability (remember, this means after all salaries are paid!) in gross revenue a reality for your firm
- Create unwavering rules that are not broken.
- Just like the Disney World guide, guide your clients in a similar manner. Be the time-saving expert they can depend on.
- When you are on vacation, leave the office at home--and yes, that means the email. And when on vacation with your family in particular, being "there" with your family is the most important thing.
More details at: http://theperfectria.com/5-business-lessons-learned-from-disney-world/
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Produced by Simpler Media