- Establishing and defining the financial planner – client relationship
In this step the financial planner, explains his / her services to the client. This means that they explain or document their responsibilities towards the project. Further in the same step he / she also chalks out the responsibilities of the client. The payment and terms and conditions are also negotiated in the same step and the time frames are negotiated as well. Decision making processes, SOPs, Specific Points of contact etc. are also decided at the same time.
- Gathering client data, goal – setting and expectation – defining
In this stage the data related to the financial state of the client’s business is collected. The personal and financial goals are defined. A thorough SWOT analysis will also give an insight into the risk taking capacity and the estimated productivity of the business. This stage is actually where planner gathers all necessary information before advising the client anything.
- Analysis and evaluation of the existing financial status
In this step, the client information is assessed and analyzed. This gives a clear idea about the current status and also helps in deciding what to do in order to achieve client’s business goals. Further, on the basis of the requested services, this stage may include the assessment of liabilities, assets, cash flow, tax strategy, investments, current insurance covers etc.
- Development and presentation of recommendations / alternatives
In this stage, the planner or the finance strategy team offers recommendations to address the business needs. This is based on the provided information in the above stages. These recommendations are reviewed together and then informed choices and decisions are made. Concerns are addressed in this stage and also recommendations are revised as appropriate.
This stage is about implementing and executing the plan. Agreements to decide and negotiate SLAs, carrying out of recommendations etc. are all drafted, finalized and delivered in this stage. In this stage the planner may himself / herself deliver and execute the recommendations or might act as a consultant thus guiding the in – house employees or team to execute. Sometimes the strategy expert may also just act as a coordinator.
This is a stage in which monitoring and evaluating strategies are discussed, finalized and executed. The reporting protocols are also set up in this case. This is the stage that leads to feedbacks and restructuring of the recommendations as and when necessary.