Reaching more clients with cash flow management

By building an advice model around cash flow management, Pursue Wealth has created a community of ongoing advice clients, reaching out to a younger demographic many advisers find hard to engage.

Sam Robinson and Josh Wingrove began their careers in traditional advice firms, focused on high-net worth individuals and pre-retirees. While they knew they were making a difference, they were also frustrated at not being able to reach younger people like themselves, who they felt would benefit most from professional advice. And so Pursue Wealth was born, with the aim of providing “lifestyle financial advice”.

“Pursue Wealth is all about working with motivated individuals to help them live a fun and fulfilling lifestyle” says Wingrove.

“We started working with people who were like us: under-40s keen to make changes to create a balanced life, making sure that not everything goes towards retirement or investing” adds Robinson.

Their clients have goals common to their demographic – saving for a wedding, having a family, buying their first home or an investment property, travel plans, starting to invest in their future or early retirement. The team at Pursue Wealth act as coaches and mentors to help them get there.

An important point of difference is that they enlist their clients as active participants in the planning process, involved in both the design and implementation of their financial strategies. They’ve also made cash flow management a central element of their advice model. And they’ve ditched suits and ties, along with formality of a traditional practice, while building an engaged community of clients on social media.

Cash management is key

Wingrove and Robinson say sound financial advice starts with cash flow – and that too many advisers don’t place enough focus on cash flow management.

“Cash flow is fundamental. It's like a profit and loss for a business. You don't start planning for things unless you genuinely understand the money in, money out. That is the foundation of any financial strategy” says Robinson.

Clients fill out a detailed income and expenditure questionnaire before their initial “Getting to know the real you” session, creating a clear financial picture that informs their discussion of lifestyle and financial goals. But rather than talking about a budget, Wingrove and Robinson prefer the less onerous-sounding “spending schedule”.

“It’s about looking after your cash, not about restricting what you can do” says Robinson, who believes clients respond much more positively when you talk their language.

The second “Design and commit” meeting sees client and adviser working together on a financial plan. The team uses a tried and tested “bucket” system, with separate bank accounts for specific purposes, maintained through automated transfers that cascade outwards from each pay-cheque. The advisers don’t set up or manage the accounts – that’s the client’s responsibility, part of the process of taking ownership of their own financial future.

A self-sustaining community

Robinson and Wingrove see their clients as members of a self-sustaining community who help educate and support each other, with ongoing guidance from the Pursue Wealth team. Their fee structure is built around offering several membership options, including "Follow your Dreams", "Achieve your Dreams" and "Conquer your Dreams", each with different levels of support.

"Conquer your dreams" members receive a full annual review, plus a second “mini review” and at least two catch-up calls (known in the team as “I love you” calls). There are also regular seminars and social events, and constant interaction on Facebook and Instagram, so clients continue to feel engaged and inspired, while their advice team soon knows if they are not staying on track.

Robinson and Wingrove believe it’s important not to undercharge, especially for initial advice, if you want clients to truly commit to their plan. “We find that if people actually have skin in the game, they're more likely to follow through and actually make changes” says Robinson. They are also careful to build ongoing advice costs into each client’s cash flow strategy, demonstrating value upfront while still earning a healthy income for their practice.

The result is a flourishing community of satisfied clients, a constant stream of referrals, and a sustainable practice – all built on cash flow management.

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