Many advisors will agree that our industry offers a number of quality and effective tax saving strategies that could help incorporated business owners, especially those that have cash surplus tied up in their operating or holding company(s). Although, they understand how much these strategies can create a significant lift to the estates of these incorporated business owners, the frustration often lies with getting the story out to these prospects. For this reason, many successful advisors have forged relationships with various centers of influence (COIs) with the goal of both enhancing their understanding and appreciation for these tax planning solutions and in return, receive qualified, warm referrals. Some examples of good COIs are accountants (CPA), tax lawyers, estate lawyers, a CFO of a private company that works with the primary business owners or a CFO of a family office. A COI can also be a commercial P&C broker, a commercial lender, or a commercial real estate agent. Regardless of which one you work with, it’s important to equip them with the tools and/or means to be able to identify ideal clients to refer you to. Why not make their job easier by telling them what to look for?
In the fall of 2022, I penned a series of articles that focused on insurance sales opportunities at various stages in the business cycle. In the most recent Sept/Oct 2024 articles, I tackled a handful of sales opportunities that were presented in the mature phase of the business cycle and shared some questions that can assist in starting the conversation to disturb and motivate clients to action (see footnote below for links to these articles). Any of those articles can be shared with your COI to increase their awareness and appreciation for what we can do for their clients. But after this, it’s important to clearly articulate what you’re looking for so they can help you get in front of the right client.
Here's a sample list you can provide them:
Do any of your clients…
have or are a key person that is fundamental to the running and going concern of their business?
have partners (multiple shareholders) ,or have a shareholder agreement? What does it say happens on death? How is it funded?
own a successful business that is generating surplus capital? (Defined as money not needed to support personal lifestyle goals)
hold an investment portfolio inside their company or own a holding company?
have maxed out RRSP and TFSA accounts?
have accumulated wealth they don’t plan on spending?
need/want life insurance, but don’t want to tie up their capital in an insurance policy since they would rather invest this money in their business(es) or other investments?
withdraw or will eventually only withdraw the legislative minimum from their RRIF portfolios.
own secondary property (i.e. Recreational, Rental property) and shares in a corporation(s) that will be passed down to the next generation? (Perm Life can minimize the impact that taxes will have on their ability to transfer their wealth intact to their beneficiaries).
Since your COI is usually preoccupied with their own business, making it easier for them to spot/identify a qualified prospect for you is key to making this productive. Doing so can help create an amazing source of qualified referrals and a develop a relationship that’s mutually beneficial for both you and your COI.
Footnote:
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