By Ian Richards
We all know the massive difference financial planning can make in people's lives, in particular those thinking of leaving the corporate world. Showing these corporate quitters the impact of their choices and the benefits they are giving up while helping them build their reserves so they can launch their business is crucial.
But what about factors that go beyond a monetary value?
Yes, as financial advisers we can give them some certainty and a plan for a new financial future , but how about all the other stuff that comes with leaving the safety net of the employed world? There is panic, doubt, and stress. There are clients who say they want to set up their own business but even after you’ve showed them how to do it financially, something else holds them back.
Fundamentally this is fear, which can have a great impact on what clients end up doing. But as financial advisers, are we the right people to help our clients deal with this fear?
As someone who has recently left a 15 year career in the corporate world to set up a firm from scratch, I am well acquainted with this fear. It normally stems from negative beliefs or thoughts such as:
And that's just a small collection of my greatest hits!
One thing I embarked on before launching my business was working with a Life Coach. I was amazed to discover the mindset blocks we have. Having done a lot of work on this over the last year, it has been invaluable for me in terms of getting me to a position to launch a thriving business.
Like financial planning, changing your mindset is an ongoing process. Negative beliefs often reappear over time, normally just before a big breakthrough or when I'm trying something new.
My own coach Alison Ford of Simply Thrive Wellbeing has seen fear and other negative mindset blocks such as self-limiting beliefs halt clients in their tracks. These blocks will hold them back even if they have the financial resources, the brilliant idea and the failsafe strategy that could propel them to the success they really want.
Alison has worked with countless clients who are seeking an alternative to their traditional employment - something they have more ownership of that they feel truly passionate about. Many of us (Alison included) are choosing the option for self-employment so that we can deliver a service that we know offers great value and outstanding results. For providing the services, we'll create the lifestyle we most want for ourselves and our families.
So, what are the big mindset blocks according to Alison?
"People's mindsets and limiting beliefs are unwittingly their own barrier in these situations," She says. "…These limiting beliefs are covert… so we may be unaware of what's really happening. We may feel we want to create our own business, or take a change in direction, but our brains are wired to see change and newness as something threatening and scary. To keep us safe, we default to previous experiences or limiting ideas such as I'm not clever enough, I'm not strong enough, I can't afford it, what if I fail? and we might question whether it's all worth it.
“The brain then responds by creating stories and thoughts that collude with the underlying beliefs…
"Coaching is a process where anyone considering growth and change can take the opportunity to step back, see their reality as it is, identify their individual blocks and work through them so they are operating from an informed, inspired, and authentically motivated mindset."
I'm not talking about financial coaching or the other elements of coaching that we do as planners in getting clients to understand what is important to them, the type of life they want or helping with finances. I mean the mindset stuff that has significant influence on how we live our lives. Even if I had the time I don't have the expertise to help my clients work through this area. Yet knowing how important your mindset is when launching and developing a successful business should we be introducing someone else into the process?
If our clients can smash the mindset side, leading to a more successful business, better work life balance and ultimately more money, this is going to lead to a better life for them and their families. This is what we are trying to achieve for our clients. I know coaching has achieved this for me and think this could benefit many potential clients.
As ever there are challenges with a new process such as coaching to clients. When do you introduce the Life Coach, should they speak to the client before you, what about people sceptical of coaching? Do we offer as a combined package or should we be referring them as a separate service? What if the Life Coach and Financial Adviser have conflicting views on plans?
I don't think these challenges should stop us exploring the opportunities regarding this. In a world where Vanguard is now offering financial advice at 0.3%, we need to distinguish the service we are offering clients and increase the value we are delivering.
At Work to Live Financial Planning we have an informal relationship whereby we refer clients to life coaches. However, we are currently working on designing a combined service offering (also with an accountant) whereby we can support clients going from the corporate world into a new business venture with all the elements this entails, so they are successful professionally, financially, and most important of all in their personal lives.
I truly believe an element of Life Coaching is the next step in helping our clients reach their potential and getting them the lives they want.
Ian Richards is a Chartered Financial Planner and Founder of Work to Live Financial Planning. He predominantly works with the next generation of clients focusing on freelancers, the self-employed and business owners.
He's on a mission to take the jargon and complexity out of financial advice to help people narrow the gap between the life they want and the one they are living.
