Understanding the Virtual Family Office Framework
Following the principles of "Who Not How" by Dan Sullivan and Dr. Benjamin Hardy, successful financial advisors focus on building relationships rather than trying to become experts in every area. The key is identifying and connecting with professionals who excel in their respective fields.
Two-Tier Relationship Structure
Local Team Composition
A strong local professional network should include competent professionals such as:
- Business attorneys
- Estate planning attorneys
- Business bankers
- Real estate agents
- Mortgage professionals
- Insurance specialists
- Payroll experts
- Tax professionals
These professionals form the foundation of your virtual family office (VFO) network, providing essential services to your high-net-worth clients.
Building Strategic Local Relationships
The process of developing your local network requires systematic approach and consistent communication:
Initial Engagement Strategy
- Schedule regular meetings (virtual or in-person)
- Explain your VFO concept thoroughly
- Maintain monthly communication
- Share relevant content and insights
- Make strategic introductions
Value-First Approach
Before seeking anything in return, focus on delivering value through:
- Client introductions
- Professional networking opportunities
- Resource sharing
- Educational content
- Strategic partnerships
The Introduction Framework
Client-Focused Introductions
Use this approach when connecting clients with local experts: "I have a great business banker I'd love to introduce you to. They're proactive with their clients, and I think you'd benefit from the relationship. I'll send an email introduction after our meeting."
Professional Network Expansion
For professional-to-professional introductions: "I know an exceptional business attorney who would be valuable to know. Would you be interested in meeting over coffee to explore potential synergies?"
Effective VFO Communication Script
When explaining your virtual family office to potential team members, emphasize:
Market Evolution
"I've been reflecting on our clients' needs and the increasing complexity of the tax code, investment markets, and overall financial landscape."
Collaborative Approach
"Clients are best served when they have a coordinated team of professionals providing proactive, holistic planning, rather than working in silos."
Value Proposition
Highlight the five key disciplines your VFO addresses:
- Wealth management services
- Risk mitigation strategies
- Legal planning solutions
- Tax planning expertise
- Business advisory services
Implementation Strategy
Building Momentum
- Start with 3-5 key relationships
- Communicate consistently
- Track introductions and outcomes
- Monitor relationship development
- Measure client satisfaction
Professional Development
- Attend industry events
- Join professional associations
- Participate in continuing education
- Stay current with market trends
- Network with other VFO advisors
Measuring Success
Track key metrics such as:
- Number of active professional relationships
- Client introductions made and received
- Revenue from collaborative projects
- Client retention rates
- Cross-referral success rates
Creating Long-term Value
The VFO model delivers multiple benefits:
- Enhanced client relationships
- Increased retention rates
- Differentiated service offering
- Expanded revenue opportunities
- Stronger professional network
Remember to develop these relationships gradually and focus on consistent value delivery before seeking reciprocal benefits.
