Because you never brought upbusiness with them, your friends might assume you don't do businesswith friends, have more clients than you can handle or don't offerwhat they need to buy. (Photo: Shutterstock)

Many people like to prospect strangers, because if they say, “Notinterested, buzz off” you never need to see them again. We findtalking business with friends awkward. Here are fivereasons to do it.

1.  They may need help.

An advisor had a friend who lost a parent.The advisor saw an opportunity for business, but held offbecause the friend was grieving.

Weeks turned to months. The relationship cooled. The advisorasked why. The friend explained:  “You knew I was in adifficult situation, coping with financial issues. You could havehelped, but you never offered.”

What's the moral of the story? “Everyone should have the opportunity to sayno.”

2.  They have no clue what youdo. 

Years ago, people's professional titles described onething. Insurance agents sold insurance.  But today, manyprofessions have spread into different fields. Today, your favoriteairline will sell you cruise tickets, book hotels and providerental cars.

Insurance agents offer lots of other financial services. Peoplewon't know unless you tell them.  What's the message? Youdon't know exactly what they do either. Draw them out. This givesyou the opportunity to tell your story.

3. They will buy somewhere else.  Asabove, they don't know what you do. Because you never brought upbusiness, they might assume you don't do business with friends,have more clients than you can handle or don't offer what they needto buy.

How often have you heard: “I never knew you did (x).  Ialways assumed you only did (y).”  Here's themessage:  They may not know how you help people or if youare taking on new clients.

4. Everyone wants to be an importantclient. People shop online, but they don't getpersonal service. Walking into a financial services office mightget them “the broker of the day.”  Are they on their wayup or out the door?

Most people prefer to deal with someone they know, someone whois personally invested in their success.  Here's themessage: “If we ever did business together, I would consider you animportant client.

5.  Keep it in the family. Families have secrets. They don't like the idea of strangersknowing their intimate details.  They also like recyclingmoney, thinking it's better that fees and commissions go to arelative, not a stranger. The message is to try and establishyourself as the family advisor for your friends and relatives.

Bottom line: It's difficult to grow a business if you focus onwho you won't do business with.

Bryce Sanders is president of PerceptiveBusiness Solutions Inc. He provides HNW client acquisition trainingfor the financial services industry. His book, “Captivating the Wealthy Investor” can be foundon Amazon.

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