Process

Step 1. Learn more about the reports.

Review the Sample Business Valuation & Planning Report and Sample Buy-Sell Review Summary Report to get familiar with the components in these reports.

Step 2. Approach clients and prospects.

Send the Business Valuation approach email to point out how the value of a business influences so many aspects of a business and its owner’s future. Or mail the approach letter to help your clients understand how these services can help them secure their financial futures. The approach brochure can also be mailed or used as a leave-behind when approaching business owners about this complimentary service.

What to say:

Opening Option 1 after sending pre-approach brochure: Mr./Ms. business owner, my name is [name] with [Principal^®] or [DBA]. I recently sent you a [letter], [email], [brochure] outlining the customized business planning services I offer that can help you identify the value of your business for planning and protection purposes. Informal business valuations and buy-sell reviews have become popular planning tools with my business-owner clients. Skip the next paragraph.

Opening Option 2 in person or via cold call: Mr./Ms. business owner, my name is [name] with [Principal^®] or [DBA]. I’d like to share with you the customized business planning services I offer that can help you identify the value of your business for planning and protection purposes. My business owner clients have found these services to be beneficial planning tools. Principal has a team of CPAs, attorneys and financial consultants that have already provided these services to business owners like you across the country.

My business clients are always interested to see the impact the economy and their business operations have had on their businesses over the past few years. Offering these services at no cost allows me to provide immediate value and help them quickly identify their financial priorities—both at the business and personal level.

Many business owners express frustration about being contacted by financial professionals who are looking for problems to fit with the solutions they offer. For example, they might say, “Let me look at your 401(k)” or “Let’s look at your health insurance premiums this year”. They seem to focus on what they have to offer instead of identifying your priorities. The business planning services I offer help business owners like you do just that—identify your top priorities.

Obviously, some of the top concerns for most business owners are:

• Growing their businesses
• Effectively managing changes in their businesses
• Eventually retiring from or transitioning out of their businesses—on their own terms

The complimentary business planning services I offer can help you focus on your priorities, whether they involve preparing for retirement, identifying who will manage your business should an unexpected change occur, or helping you protect the integrity and value of your business as you transition out. All of these things usually start with having a good idea of the value of your business today, updating the value over time, and having a plan in place for managing that process through your intended retirement or transition out of your business.

If I could have just 20 minutes of your time [now], [later this week] or [early next week] to share samples of our business planning services reports with you, I believe you will find them to be valuable tools for your business. All we need to get started are the latest three full years of your company tax returns, your buy-sell agreement if you have one, and the answers to a few simple questions. What time works best for you?

Step 3. First meeting fact-finding session.

Complete the digital Request for Proposal:

• Collect a copy of existing buy-sell agreement.
• Collect a copy of existing buy-sell agreement.
• Ask about any existing insurance.

Present the Sample Informal Business Valuation Report. This piece will allow you to give an overview of the value provided by this informal valuation service. If the client has a buy-sell agreement in place, present the Sample Buy-Sell Review Summary Report to offer the buy-sell review service as well.

Step 4. Request a proposal.

Submit the completed digital RFP from Step 3. When you receive the reports, review the results with the consultant who prepared your report. Call the Business and Advanced Solutions hotline, 833-803-8345, to schedule a call.

Step 5. Presenting the proposal and completing applications.

• Present the completed Informal Business Valuation and Business Planning Report to the client.
• Schedule a conference call if you would like Business and Advanced Solutions to assist with the discussion of your client’s IBV and/or the buy-sell review reports.
• Review and rank the planning considerations at the back of the report.
• Be sure to take applications for life (term and permanent) and disability insurance so you can get underwriting started right away.

Step 6. Submitting the business.

Always complete and submit the Business Submission Checklist when submitting your business cases.

Emails and infographics

Approach emails:

• Financial professional use: Boost sales with informal business valuations (OFT)
• Use with clients: Importance of reviewing a buy-sell agreement (OFT)
• Use with clients: Importance of an accurate business value (OFT)

Client infographics:

• Buy-sell review retirement planning (PDF)
• Buy-sell agreement funding (PDF)
• Buy-sell agreement & business valuation (PDF)