{"id":6202,"date":"2021-05-20T10:30:36","date_gmt":"2021-05-20T10:30:36","guid":{"rendered":"https:\/\/emoneyadvisor.com\/?post_type=thought_leadership&p=6202"},"modified":"2024-04-30T18:21:52","modified_gmt":"2024-04-30T18:21:52","slug":"where-to-begin-with-clients-who-are-new-to-planning","status":"publish","type":"thought_leadership","link":"https:\/\/emoneyadvisor.com\/blog\/where-to-begin-with-clients-who-are-new-to-planning\/","title":{"rendered":"Where to Begin with Clients Who Are New to Planning"},"content":{"rendered":"

There’s a lot of advice online for people wondering whether they are ready to begin working with a financial planner. But what if you’re a financial professional trying to determine if you should take on a potential new client that may not have much in the way of investible assets?<\/p>\n

In my book, \u201cMotivate Your Money,” I too provide advice for people who want to work with a financial professional to better plan for their future. But now I’d like to look at some of that advice from the perspective of a financial professional who is deciding which clients they are ready to begin a relationship with.<\/p>\n

The Motivation Factor<\/h2>\n

Taking on younger, less wealthy clients means playing the long game. While spending most of your time working with more established, wealthier clients is what makes your business flourish day to day, bringing on those who are just getting started on their financial journey will build a solid client pipeline for the future.<\/p>\n

What should you look for to help ensure these new clients have the potential to sustain your business in the long term?<\/p>\n

Start with motivation. Throughout my career in the financial services industry, I discovered a common thread among people who were very successful in their financial lives. Not only were they focused on the financial aspects of their lives, but they were also motivated to make sure their personal and business affairs were in line with their financial goals.<\/p>\n

For people to get financially motivated, someone needs to serve as a financial motivator. This is where you come in. They may have had a parent or teacher who has motivated them in their lives, but the complexity of the field of financial services makes it hard for just anyone to be a specialist in all the many interconnected fields of financial planning. You can take these complex strategies and make them easy to understand, implement, and monitor so they remain motivated.<\/p>\n

Early Stages of Involvement<\/h2>\n

Once you think you have found some younger, not yet established clients you feel are a good fit for your practice, how frequently should you connect? This will depend on the client and their income and planning needs. However, keep in mind that with younger clients, transparency and flexibility regarding fees are extremely important.<\/p>\n

Consider the fee structure that would work best with someone who is just starting out. Think about a flat fee cost or hourly rate you could charge for an initial financial plan. Talk to them about what they can afford and how often they would like to connect.\u00a0Look for ways to enhance the relationship\u00a0that don’t add further costs.<\/p>\n

The beauty of finding the appropriately motivated new client and then providing them with a plan to help them maximize the income they have means a greater likelihood of that client becoming a profitable, long-term client for the future.<\/p>\n

Nail the Interview<\/h2>\n

It’s not likely you will be able to pick and choose from the most motivated of the potential new clients you want to work with. They have many options and will likely talk to several people, including your peers, to determine who is the right fit for them. Make sure you understand what they are looking for to secure your position as their new financial professional.<\/p>\n

My guidance for those who are looking for their perfect financial planner is to make sure that person’s financial planning concept or strategy helps them attain three goals. I call it the 3R rule: the concept must be relatable, retainable, and repeatable.<\/p>\n