Office décor can color bottom line

Financial adviser Ted Feight used to deck out his office with three-foot tall bodybuilding trophies and a large rug depicting a deer.
DEC 02, 2009
Financial adviser Ted Feight used to deck out his office with three-foot tall bodybuilding trophies and a large rug depicting a deer. But when his wife and son a few months ago suggested that these items may turn off prospective clients, he ditched them — a move he credits with helping him land several new clients. “Physically, I could see a difference in people when they came in,” said Mr. Feight, president of Creative Financial Design, which manages $25 million in assets. “Some were uncomfortable with the deer rug; a lot of people don't like hunting.”

Making a difference

Décor, it seems, does make a difference. Several advisers contacted by InvestmentNews said they have discovered that how they decorate their offices can make or break potential client relationships. And while expenses are a key concern for many advisers in this down market, improvements can cost less than $10,000, interior designers said. In many cases, advisers can make their offices more inviting simply by not displaying art and pictures that are too personal or that might be objectionable to clients — such as nude paintings and hunting artifacts — and keeping things neat. Advisers also need to show their clients that they are professional without being too extravagant, said Judy Feyen, president of Advanced Designs, Grand Rapids, Mich. “They need to look like they're established, and not like they've just moved in, but they also need to look financially responsible,” she said. “The client doesn't want to look around and see a huge TV that might make them concerned that their money isn't being invested properly.” Although advisers may want to show off their accomplishments, they shouldn't cover their entire office with diplomas and awards, Ms. Feyen said. Pictures of the family can also be overdone, she added. A few family pictures are fine, but a collage of children from kindergarten to graduation is too much, she said. Sal Zambito, a senior vice president of business consulting for LPL Financial, said that advisers need to ensure that any location that clients visit is clean. Carpets need to be clean, and any area visible to clients needs to be neat. “There should be an understated elegance without being too opulent,” Mr. Zambito said. “You do want it to be sophisticated and professional, and show a glimpse of the firm.”
When Investor's Capital Management LLC moved into new offices in May 2008, its partners — certified financial planners Rich Chambers, Jennifer Cray and Julie Schatz — wanted a crisp, professional look. The advisory firm manages about $200 million in assets. They hired a professional designer who helped to furnish and decorate the office with new carpeting, furniture, three computers, a copier and printers, paint, doors, window treatments and lighting. It cost nearly $90,000 but was money well spent, Ms. Schatz said. “The $90,000 is an investment to our business,” she said. “We wanted the office to have the right look and feel for clients and us,” Ms. Schatz said. “Since we spend nearly as much time here as at home, the aesthetics are important.” In the lobby, a sign declares the firm's philosophy: “Money is like a bar of soap — the more you handle it, the less you have.” The office fits the partners' personalities without being too personal, Ms. Schatz said. However, in some cases, advisers lose clients when they devote too much of their office décor to their personal interests, said Kenneth Walter, president of Gray & Walter Associates, an interior-design firm. He thinks that advisers need to be cautious about displaying their hobbies and political beliefs. “Why do you have to have so much of that personal stuff out? I think that's a big mistake,” Mr. Walter said.
“I think you should show who you are, but there's a limit,” he said. “There's nothing worse than if you're of a particular political party and all you do is jam it down someone's throat.” Of course, some advisers still choose to show a little personality. Jack Reutemann, a founder and president of Research Financial Strategies, which manages $168 million in assets, said that he proudly displays his grandmother's stuffed-elephant collection from her days in the Republican Party in his waiting room, explaining that he wants his lobby to be comfortable and free of cumbersome stock charts.

Bipartison décor

Over the years, he said, the elephants have been joined by donkeys brought in from his Democratic clients, as well as other stuffed animals, including gorillas and zebras. “It doesn't look like the normal investment broker's lobby; it almost looks like a day care [facility],” Mr. Reutemann said. “What they're seeing is a warm, friendly environment,” he said. “The typical broker has all of these bad-news charts on their walls.” Likewise, CFP Richard Mootz, who runs an eponymous practice with $35 million in assets, said that he also wants to show his personality to his clients — even if it means losing some. He said that he has lost potential clients because he is a hunter and displays wildlife pictures on his walls. But Mr. Mootz said that he enjoys working with clients who share his interests. “I don't want you to judge me because I hunt,” he said. “I've lost quite a few people, and I will lose potential clients because of this, but hopefully, I'll also gain clients that I like.” E-mail Lisa Shidler at [email protected].

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