How does a financial plan lead to business?

Here are 10 ways that the time you’ve spent getting to know the client goes a long way towards keeping the business in house.

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Financial planning is beneficial for the consumer.  It also can lift the agent or advisor from salesperson to professional.  Plans should cost money and be portable.  Why?  The reasons are “you get what you pay for” and the recommendations should be able to be implemented by the client elsewhere, if they choose.  The time you’ve spent getting to know the client goes a long way towards keeping the business in house.

How does delivering a financial plan lead to business?

1. It strengthens the bond.  I love this old analogy:  Imagine you visited a doctor, said you had a pain and they reached into their pocket, handed you a vial of pills, said “Take these” and sent you away!  You would think they hadn’t bothered to learn about your situation.

Taking the time to do a plan indicates you are serious about wanting to help this person.It identifies problems.  The prospect might (or might not) have known about the problem or its severity.  The financial plan usually spells it out.  They might not act, but once it’s identified, the problem doesn’t go away until they take action.

2. You see their whole financial picture.  A prospect might say: “Sell me term insurance.”  Is that the right product for them?  Doing a financial plan shows the big picture.  It also lets you know what investments they own in different places.  It’s very different from someone saying “What do you have in this one product?”

3. It’s a logical reason for an insurance review.  Do most people understand what they own?  Probably not.  Do they own the right products for their current situation?  A client might think they have adequate insurance coverage, yet it’s all through policies at work.  What if they don’t work there one day?

4. The opportunity to show what you can do.  It’s tempting to look for low-hanging fruit, telling them “You should look at these other needs too.”  Over time you can likely address all their needs if you bring in relevant specialists.  More products also lead to tighter relationships.

6. There’s free advice too.  Some prospects might think it’s all about selling something.  You can talk about the need to have a will and keeping it updated.  Giving some advice they can implement without cost from you should make them more interested in following your other recommendations.

7. Plans need reviewing.  Financial plans should be dynamic documents.  Portfolios need rebalancing.  How does progress to goals look?  How should fresh money be invested?  Plan reviews are a good time to suggest actions.

8. You become the quarterback.  If you lead the financial planning effort, you are showing the client how all the pieces fit together.  When they have extra money or face a financial decision, you are often their first call.

9. It creates a reason to get to know their accountant.  There’s another important financial person in their life.  Putting a plan together with your client is a good reason to bring their accountant into the picture.  If they are impressed, this could lead to referrals.

10. Financial planning should help clients sleep better.  Retirement planning is an important goal for most people.  Knowing they have a plan plus investments aligned towards making progress on that goal should reduce stress.

Financial planning shouldn’t be thought of as a tool to get an order.  It’s the foundation for a lasting, deep business relationship.

Bryce Sanders is president of Perceptive Business Solutions Inc. He provides HNW client acquisition training for the financial services industry. His book, “Captivating the Wealthy Investor” can be found on Amazon.

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