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Giving the Right Financial Advice to Your Business Clients

Have you ever given one of your business clients alternative advice regarding their company? While business owners come to you primarily seeking coverage options, it may do your agency good to offer some consultation surrounding various issues that small businesses face.

Of course, you will always provide products like business insurance coverage, but by also showing clients that you care deeply about their success you will be able to build more trustworthy relationships. Aside from protecting their businesses from physical damage, business owners must always be conscious about their finances. The recent struggles of the economy have caused companies to be more diligent and responsible with their finances than ever before, and your agency can be the one to offer clients financial advice should they need it.

Here are some tips you can offer your clients:

  • Stick to a budget: One mistake small businesses tend to make is going over budget. It may seem like a good idea and not that big of a deal, but in retrospect, it’s a decision owners tend to regret. Tell your clients to make sure they are tracking their monthly or quarterly budget against what they actually spend.
  • Keep track of everything: Whether you’re in charge of finances or someone else, make sure you always have a keen idea of where you stand financially. You must know whether or not you have been making a profit or losing money, so having awareness of whether you’re in the black or red is key.
  • Know the trends: You may want to persuade your clients to talk with other business owners in similar industries and see what their finances are like. This will allow them to see what things are wise to invest money in and what things are not. While your insurance agency primarily deals with offering coverage options for small businesses, you will be serving your clients even more by offering them various levels of advice. Finance and capital are integral aspects of any company and everyone, especially small business owners, can use all the help they can get.


About the Author: Will Penny is the third-generation President of Penny Insurance Agency in Hendersonville, North Carolina. His agency was Rough Notes Magazine’s E-Marketing Agent of the Month in March 2010 and he has been featured in online marketing videos for Insurance Journal and National Underwriter.

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