Four ideas to generate new business from existing clients

The last few months have involved significant changes for us all. There will be a similar journey as we begin a phased return to ‘normal’ life.

The scale of these adaptations means that many people are going to rely on longstanding relationships in order to support them throughout this transitional period. As a result, many advisers are beginning to see that existing clients are creating the majority of new business as lockdown restrictions continue to ease.

A common concept for many financial advisers, The Pareto Principle (also known as the 80/20 Rule) proposes that roughly 80% of results come from 20% of causes. This concept is a daily reality for most advisers who gain the majority of their business from roughly 20% of their clients.

This idea is likely to further increase in significance as advisers rely more heavily on pre-existing relationships in order to reinvigorate their business in the second half of 2020.

As generating new business from existing clients continues to grow in value, we have highlighted some of the most effective strategies to help re-energise business from your existing client base.


Help clients divide up assets for multiple beneficiaries

Clients are often not just looking to protect their legacy. Many want to ensure that their beneficiaries have strategies in place to make best use of it.

According to new research by Openwork, 63% of parents and grandparents want some form of influence over how their beneficiaries spend their inheritance. For example, a quarter of those questioned want to ensure that their grandchildren benefit from their assets.

This desire to have a say on the long-term impact of their legacy means that many clients want more control in the later life planning process.

The Stellar Growth Inheritance Tax Service gives your clients this control by allowing them to earmark assets for each beneficiary.

On investment, we establish a trading company for each investor and issue them 100% of the share capital. Each investor can set up multiple trading companies. Each of these can be associated with a different beneficiary. As a result, each company can then be easily passed on to the respective person.

This offers your clients control over their estate. Multiple beneficiaries are considered individually whilst still protecting the client’s legacy from Inheritance Tax.

To find out more about setting up a personal trading company with the Stellar Growth IHT Service, click the video link below.

Make use of legislation that clients are often unaware of

The Additional Permitted Subscription (APS) is largely unknown but widely available. It is a highly beneficial allowance for surviving spouses or civil partners of ISA investors.

This legislation grants ISA holders the ability to pass the entire value of their ISA to their partner after death. The APS works in the form of a one-off increased ISA allowance. This is on top of their own £20,000 annual ISA subscription.

As little as 14% of eligible partners in the UK made use of their annual APS allowance in 2017-18.

With nearly £70 billion being sheltered by ISA investors, there is still a general lack of awareness of the APS. This creates a great opportunity for advisers to write new business by touching base with their existing clients that are either confused by the APS allowance or have yet to seek proper financial advice around this area.

If you would like to find out more about the APS and how it could work for your clients, click the link below.

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Utilise technology to involve beneficiaries from the start

By adopting video calls and online paperwork during this crisis, advisers now have the experience and confidence to run meetings virtually.

Utilising this technology allows the next generation to be involved from the earliest opportunity regardless of their location. This in turn means that a wider family financial plan can evolve from day one. As a result, every beneficiary can feel like they are an important part of the process.

Building this connection not only helps improve trust levels between advisers and beneficiaries. It also increases the likelihood that these people will become directs clients of the future.

Existing clients also have added peace of mind. This strategy gives them the security to know the people they care about most are being taken care. These beneficiaries will also have the knowledge to utilise their inheritance in the best way possible.

To find out how you can help your clients and their beneficiaries develop a financial plan that considers the specific needs of everyone involved, click the link below.

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Work with industry experts to expand your service

The thought of a loved one passing is one of the most sensitive topics for many clients. Our Inheritance Tax Services can help take as much of the stress of the process away from beneficiaries as possible. By removing the impact of Inheritance Tax, beneficiaries will gain access to the largest inheritance possible. In other words, this will offer them greater flexibility in the years to come.

In addition to our Business Relief services, we work with a range of carefully selected partner organisations. These collaborations work to provide financial advisers with a holistic approach to later life planning. From trustee and tax advisory services to business succession and blended family services, our partner network gives advisers the connections they need for a truly holistic offering.

By broadening your network and seeking connections with a variety of experts throughout the financial planning industry, you can support your clients in more areas of the estate planning process.

To find out more about our range of partner services, click the link below.

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Working with Stellar to generate new business from existing clients

To learn more about our range of Inheritance Tax Services and how they can help you generate a variety of new business from existing clients, click here or contact an experienced member of the Stellar team on 020 3907 6984.


Written by Jack Dobinson