Strategies for Growth – Both Now and in the Future

Mike McGlothlin, ChFC®, CLU®, CFP®

Your clients aren’t the only ones transitioning to retirement.

Our industry is also experiencing a shift as many advisors think about transitioning their book of business to the next generation or to an outside financial planner. With so much transition, how do you drive value to your business? How do you maximize it and increase revenue?

As we’ve talked about before, increasing clients and assets under management are the first options that most of us consider. And it’s true that increasing clients and AUM will increase growth. But there are some other effective options you should consider.

Let’s start with cross-selling. Expanding your portfolio to include life insurance, asset-based solutions, annuities and other products that produce a recurring trail of renewals. Just like diversifying client portfolios, you can diversify your streams of income, and you can do it by tapping into your existing clients.

In addition to providing a stable base for your revenue, cross-selling will also help build your brand, which is the second solution I want to discuss when it comes to growing your business. More than anything else, YOU are your brand. You are the reason your clients chose your business. When it comes time to pass your business along to the next generation that brand will be a big part of the value. You don’t want your clients to feel abandoned. Planning ahead to include a two- or three-year consulting agreement with the new owner after you sell can help with the transition.

Before you begin any transition, think of where you’d like your business to be in five-10 years. More and more clients are retiring as we witness the greatest shift from workplace to retirement our country has ever seen. Most Americans are relying on their accumulation of assets over the last 30 to 40 years — accumulation that won’t just be AUM after they retire.  

So, when a potential buyer for your book of business is projecting the value of their recurring revenue, they’re going to see a steady accumulation. An Income Alpha strategy can help. (Check out a case study here.) It allows you to look at how guaranteed income might be able to help you sustain your book of business and increase the value of your recurring revenue by as much as 23% to 36%.

Cross-selling, planning for transition and a sound growth strategy are all effective ways to not only grow your business to a High Performing Practice, but also add value to your clients. It’s a chance to set both you and them up for success.

Transformational Tactic

Grow your business and add value to your clients now. It’s the perfect way to start planning for your own transition into retirement when then the time comes.