PLANADVISER - May/June 2018 - 49

was struck by Carbone's comparison of Howard Johnson's,
Marriott and Walt Disney. " Howard Johnson's mantra was,
'Cut costs, cut costs, cut costs,'-and they cut themselves
out of the business. Marriott and Disney World are all about
experience, " he observes.
He decided to expand on the success of the educational
seminars and golf outings and build a new, 12,500-squarefoot
office building-complete with a coffeehouse, which
another customer had suggested. This, Spectrum uses as a
meeting space. " With the push of a button, blinds come down
along with two screens and a drop-down projector-and it
turns into a theater, " he says. " It's one of the best ideas we
have ever implemented. If any adviser is thinking about
building a new building, build a coffeehouse. "
Marshall says the economics of constructing a new
building made sense. When he asked a real estate agent to
project how much rent he would be paying in 10 years for his
then-current location, he was told $100,000 annually.
So, Marshall bought land to start afresh. " We are in
Ozaukee County, the 30th wealthiest county in the country,
on the busiest road in the county, where 22,000 cars pass
every day, " he says. " You want to be where the action is.
Other advisers might build in an industrial park. You need
to build on a major thoroughfare. The new building underscores
our brand and serves as an advertisement. It has also
enabled us to attract some of the best talent in the area. "
Additionally, Marshall credits the new building and
coffeehouse with Spectrum's stellar growth. " I joined this
company 22 years ago, and it took us 18 years from that
point to get to $700 million in assets, " he says. " We built the
new building five years ago, and, since then, assets have
grown to $2.2 billion. We have tripled assets and revenue
and about doubled the number of employees to 35. "
Making It Visual
Knowing that customers and prospects would frequent
Spectrum's offices, and leveraging the company's illustrative
approach to investing, Marshall was keen to add elements
that were visually striking. " We close 90% of prospects after
they have come into our office, " he notes. " When they see
our building, they see our commitment to our industry. "
Therefore, in the reception area, visitors see a large
photograph of the 157 attendees at a recent Spectrum
golf outing. " We are precluded from doing testimonials in
our business, but there's nothing wrong with showing 157
smiling faces, " Marshall says.
In the conference room, Spectrum has a timeline with
highlights of its business. " I'm convinced that in the art of
selling, people take in information with their brain, but their
decisions are made with their heart, " he says. " What I like
about this timeline wall is, it's the story of our company. "
For example, the timeline shows that, in 1993, Spectrum
sent its first adviser to the leadership conference that Don
Trone, founder and CEO of 3ethos, holds each year at the
U.S. Military Academy. Since then, Spectrum has sent six
more advisers to the conference. " The cadet code is, 'I will
not lie, cheat or steal or tolerate anyone who does,' " Marshall
says. " I think that is really important in our industry. "
Moreover, the timeline indicates that Spectrum has developed
a succession plan by bringing in six partners. Marshall
and his son, Jonathan, own 86% of the company, and the
partners own the remaining 14%, he says. " Not only has this
created a succession plan, but it has raised the quality of the
other people we have been able to attract, especially on the
sales side, because when they know they are working with a
partner, it makes a difference, " Marshall says.
The Spectrum office also features a map wall, showing
that the firm serves 135 clients in 35 states. And visitors also
can see the area where six part-time retirement coaches
handle calls from 401(k) participants and schedule on-site,
one-on-one meetings with them. " One is a retired CPA,
another a retired guidance counselor, " Marshall says. " They
are fabulous coaches. We look for people who don't need to
work but have a passion to help people. Most of them are
self-made, worth $1 million to $2 million. One of the problems
this industry has faced is providing education and still
being profitable. We have found these part-time retirement
coaches work. "
Capitalize on Novelty
As to the coffeehouse, Spectrum hosts three educational
sessions there each year. In January, meetings discuss the
market; May meetings cover important aspects of retirement,
such as Social Security, long-term care and Medicare
supplements, Marshall says.
In October, Spectrum hosts
motivational speakers, who have included a Navy SEAL, a
U.S. Ranger and a nutritionist. Two sessions are held each
day, for a combined 80 attendees. Spectrum broadcasts the
sessions by WebEx and summarizes them in a quarterly
newsletter it sends to its 23,000 participants.
The coffeehouse venue has been overwhelmingly popular,
and Marshall attributes this to its novelty. " It makes our
company different, " he says. " No matter what business you're
in, you need to differentiate yourself from the masses. We
provide an experience to the customer, and this gives us a
durable competitive advantage. "
The new building has been such a success that Spectrum
is investing another $1 million to add a second story. This
will house, potentially, another 20 employees and accommodate
a second coffeehouse where presentations on the
first floor can be projected simultaneously.
As Marshall puts it, " The bottom line is, 'If you build it,
they will come.' " -Lee Barney
KEY TAKEAWAYS
* Hosting off-site educational and sporting events
can solidify existing customer relationships and
possibly build new ones.
* Bringing customers and prospects into your headquarters
for additional on-site seminars gives them
experience and insight into how you do business,
and positions your company as a thought leader.
planadviser.com may-june 2018 | 49
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