In my opinion, marketing is one of the vital components of your business strategy, especially if you are a small to medium size enterprise (SME). Never be embarrassed about the scope and scale of your marketing. Remember that in a new business, no one else is going to do it for you! This is also the case when you enter a partnership with business colleagues.
As we move into an autumn of possible austerity measures being implemented by our coalition Government and the potential of redundancy looming over some employees, planning your strategy for a new start up business is going to be important in the balance of 2010 and into 2011.
Someone within the new business specifically has to own the marketing project and be enthusiastic to promote the ethos of the business. Never assume that someone else is dealing with marketing: get it agreed at the outset who is leading the role and get them (or you) to put together the marketing plan for the next three years. Create a specific 12-month plan as well. I suggest limiting the length of the second plan to 12 months at the outset because your marketing will need to be agile in its approach, taking advantage of opportunities as and when they arrive. Using financial planning and independent financial advice as examples, there could be a change in legislation or an upturn in a particular investment market.
What’s the difference between economies of scale and economies of scope, and why is this important to your marketing strategy?
This was an important learning point for me, especially with regard to marketing. When applying economies of scale to marketing you are sending out a single message in bulk, such as a newsletter. This does work. Because of the volume being used, production of your marketing can be cheap and timely.
But what about taking the same message and rearranging it to re-use parts of your message elsewhere to amplify your message? This is an economy of scope. The same newsletter you wrote to take advantage of economies of scale may feature various newsworthy topics in your profession. You will have spent time checking these topics to ensure that they are relevant, compliant and above all, interesting.
Example of an Economy of Scope
* Create a ‘blogspot’ on your website and segment the topics from your existing newsletter. Then turn them into blogs on your website. You will know that Internet listing sites crave new content.
* Record a five-minute discussion about an interesting and topical subject with a colleague, friend or family member. Then podcast this on your website, or if you are more sophisticated, video it and ‘vodcast’ it. Watch your Internet rankings soar.
* Use social networking sites to discuss the same issue, such as Twitter. However, make sure that it is both relevant and compliant for your regulatory authority, if you have one. (my name on Twitter is ‘onlinefinancial’)
* Convert your regular newsletter into an article, and write to the press about the issues you are considering. Choose an issue that you are well qualified to talk about and are able to answer questions about. This may also have the advantage of demonstrating your commitment to the FSA’s Treating Customers Fairly (TCF) initiative which we endorse.
By doing this, you have taken one newsletter and reinvented it in four other formats, giving the same informed message in very different distribution styles, increasing the potential for audience variation and penetration. With a little extra application, it is possible to diversify your message and distribute it into other areas, creating greater scope for your message to be heard by new prospects.
Once you are recognised as an expert in the topic selected, update your thoughts and understanding and repeat the process.
As an example, many television channels have used the same philosophy, broadcasting their standard channel, then a ‘plus 1’ model, as a new separate channel, just one hour forward. They then add a website distributing the same information. This creates three distribution models for the same message. It’s both innovative and cost effective.
Marketing techniques have changed significantly in recent years and I have found that subtlety over ‘in your face’ promotion works best. Many financial services organisations (other than the banks) lack a shop window and many would not want one. When you have got your marketing right, these prospects will find you easily and sales, either fee based or commission driven will be achieved.
Also, the timing of your marketing is vital. Referring back to your year’s sales target, you have correctly divided your sales target up into months to ensure that you maximise peak performance. Your marketing campaign must coordinate with this sales strategy. If you were running a Christmas shop, you probably would not start your company’s peak marketing campaign in July. The same applies to financial services. You might build your campaign up to March/April/May and then regenerate it again to October/November.
We wish you every success with your new business venture.
Extracts from the new book, Sign Here, Here and Here!…Journey of a Financial Adviser ISBN: 978-0-9564325-0-6
Further details on this topic can be found in the new book available at our website, www.signherehereandhere.co.uk or on Amazon here.
Speak to Churchouse Financial Planning Limited (or your independent financial adviser/ IFA). This statement is not individual advice and should not be relied on because each clients circumstances are different.
Keith Churchouse
Director of Churchouse Financial Planning Limited
Churchouse Financial Planning Limited is authorised and regulated by the Financial Services Authority
Monday 20 September 2010
Thursday 16 September 2010
When to transfer money or assets on divorce?
A capital payment to a spouse may have been agreed in your financial settlement and this will need to be paid at the specified time after the divorce is finalised. This may have been detailed in your Consent Order. This may involve releasing funds from deposit accounts or selling/transferring shares and other assets in order to meet the payment.
It is important that you don’t forget to take a look at the tax implications of this payment requirement as it can have a significant effect on the value that you (or your ex-spouse) finally achieve. For example, you may be required to transfer shares to your ex-spouse upon divorce. Transfers of assets between current spouses do not normally create tax charges — but a transfer to or from a person who is no longer your spouse because you are now divorced may do.
In normal circumstances, assets transferred between civil partners or spouses in the tax year during which they have lived together, including the year of separation, are exempt from Capital Gains Tax (CGT). However, from the end of the tax year of separation the situation changes and if you have large financial assets to be redistributed then you may want to take this into account. You should seek advice on this subject if it affects you, you don’t want to get this wrong, I am sure!
Careful financial planning and timing are important here. Tax positions and legislation can change regularly and the comments above may already have become out of date by the time you might go through a divorce of your own. Check with your accountant or financial adviser before making any changes to make sure that the legislation has not changed.
The tax year runs from the 06th April each year to the 05th April the following year, with most individual annual tax allowances being renewed each year. Each individual is taxed separately, so ensure that you take this into account with your negotiations. Your accountant or independent financial adviser (IFA) should be well placed to make sure you minimise the effects of tax.
Further details of this new book are available at our websites, www.addictedtoweddingcake.co.uk or on Amazon here.
Speak to Churchouse Financial Planning Limited (or your independent financial adviser/ IFA) to help with advice on this issue. This statement is not individual advice and should not be relied on because each clients circumstances are different.
Keith Churchouse
Director of Churchouse Financial Planning Limited
Churchouse Financial Planning Limited is authorised and regulated by the Financial Services Authority
It is important that you don’t forget to take a look at the tax implications of this payment requirement as it can have a significant effect on the value that you (or your ex-spouse) finally achieve. For example, you may be required to transfer shares to your ex-spouse upon divorce. Transfers of assets between current spouses do not normally create tax charges — but a transfer to or from a person who is no longer your spouse because you are now divorced may do.
In normal circumstances, assets transferred between civil partners or spouses in the tax year during which they have lived together, including the year of separation, are exempt from Capital Gains Tax (CGT). However, from the end of the tax year of separation the situation changes and if you have large financial assets to be redistributed then you may want to take this into account. You should seek advice on this subject if it affects you, you don’t want to get this wrong, I am sure!
Careful financial planning and timing are important here. Tax positions and legislation can change regularly and the comments above may already have become out of date by the time you might go through a divorce of your own. Check with your accountant or financial adviser before making any changes to make sure that the legislation has not changed.
The tax year runs from the 06th April each year to the 05th April the following year, with most individual annual tax allowances being renewed each year. Each individual is taxed separately, so ensure that you take this into account with your negotiations. Your accountant or independent financial adviser (IFA) should be well placed to make sure you minimise the effects of tax.
Further details of this new book are available at our websites, www.addictedtoweddingcake.co.uk or on Amazon here.
Speak to Churchouse Financial Planning Limited (or your independent financial adviser/ IFA) to help with advice on this issue. This statement is not individual advice and should not be relied on because each clients circumstances are different.
Keith Churchouse
Director of Churchouse Financial Planning Limited
Churchouse Financial Planning Limited is authorised and regulated by the Financial Services Authority
Wednesday 15 September 2010
All things pensions in divorce
Pensions can be a complicated subject at the best of times. You probably know that already! When it comes to pensions in divorce, then the situation can get very complicated. Getting good advice at the outset from an individual who is qualified in the subject is usually worthwhile, as you will see.
It may be possible in your case that a pension share may be involved. This may involve both parties getting some property equity, but this equity is effectively traded for a part share of a pension value. If agreement is reached, then a pension share order (or Pension Annex) will be granted by the court and the percentage of the pension that is to be split away is usually transferred out to another pension arrangement of the recipient’s choice, dependent on the scheme. Also note that any agreed transfer out of a pension may incur administration fees by the original provider concerned and I have considered the issue of pensions and their benefits in detail in my book, Addicted to Wedding Cake, The Journey of Divorce.
There was another alternative for pension benefit division introduced in 1995 Pensions Act called Earmarking. This has not been widely used because it may not achieve a ‘clean break’ in pension terms and does not allow the ex-spouse to receive a pension income until the originating spouse with the pension fund actually draws benefits and retires. Death and remarriage will also effect this option. Some pension providers, usually final salary schemes, allow the share to stay within the scheme, although this is not always the case. If this is achievable then it should be considered carefully along with any other options. Remember that some pensions can give benefits in different ways and you may come across Personal Pensions (PPP), Section 32’s, Retirement Annuities (RA’s), Guaranteed Annuities and Executive Pension Plans. Quite a maze and don’t forget your State Pension Benefits. You should speak to a qualified Independent Financial Adviser (IFA) about the options available, but I recommend that you search hard for an adviser who knows the subject well as it is a specialist area.
Whatever you do, get independent financial advice on the real monetary values of what you and your partner hold in pensions, as an example. This is partly because you do not want to give away too much by transferring a Cash Equivalent Transfer Value (or CETV for short) to an ex-spouse.
The independent financial adviser (IFA) can be instructed by you individually or, with agreement, both parties to get an overall view of the financial situation to demonstrate true values of pensions and there benefits. Some IFAs are affiliated and accredited by the organisation Resolution and it might be worth your while enquiring about this accreditation from your financial adviser as their numbers have been growing across the UK. They have received training and testing as a ‘Financial Neutral’ in helping a separating couple with the pensions and financial affairs in divorce situations.
Further details of this new book are available at our websites, www.addictedtoweddingcake.co.uk or on Amazon here.
Speak to Churchouse Financial Planning Limited (or your independent financial adviser/ IFA) to help with advice on this issue. This statement is not individual advice and should not be relied on because each clients circumstances are different.
Keith Churchouse
Director of Churchouse Financial Planning Limited
Churchouse Financial Planning Limited is authorised and regulated by the Financial Services Authority
It may be possible in your case that a pension share may be involved. This may involve both parties getting some property equity, but this equity is effectively traded for a part share of a pension value. If agreement is reached, then a pension share order (or Pension Annex) will be granted by the court and the percentage of the pension that is to be split away is usually transferred out to another pension arrangement of the recipient’s choice, dependent on the scheme. Also note that any agreed transfer out of a pension may incur administration fees by the original provider concerned and I have considered the issue of pensions and their benefits in detail in my book, Addicted to Wedding Cake, The Journey of Divorce.
There was another alternative for pension benefit division introduced in 1995 Pensions Act called Earmarking. This has not been widely used because it may not achieve a ‘clean break’ in pension terms and does not allow the ex-spouse to receive a pension income until the originating spouse with the pension fund actually draws benefits and retires. Death and remarriage will also effect this option. Some pension providers, usually final salary schemes, allow the share to stay within the scheme, although this is not always the case. If this is achievable then it should be considered carefully along with any other options. Remember that some pensions can give benefits in different ways and you may come across Personal Pensions (PPP), Section 32’s, Retirement Annuities (RA’s), Guaranteed Annuities and Executive Pension Plans. Quite a maze and don’t forget your State Pension Benefits. You should speak to a qualified Independent Financial Adviser (IFA) about the options available, but I recommend that you search hard for an adviser who knows the subject well as it is a specialist area.
Whatever you do, get independent financial advice on the real monetary values of what you and your partner hold in pensions, as an example. This is partly because you do not want to give away too much by transferring a Cash Equivalent Transfer Value (or CETV for short) to an ex-spouse.
The independent financial adviser (IFA) can be instructed by you individually or, with agreement, both parties to get an overall view of the financial situation to demonstrate true values of pensions and there benefits. Some IFAs are affiliated and accredited by the organisation Resolution and it might be worth your while enquiring about this accreditation from your financial adviser as their numbers have been growing across the UK. They have received training and testing as a ‘Financial Neutral’ in helping a separating couple with the pensions and financial affairs in divorce situations.
Further details of this new book are available at our websites, www.addictedtoweddingcake.co.uk or on Amazon here.
Speak to Churchouse Financial Planning Limited (or your independent financial adviser/ IFA) to help with advice on this issue. This statement is not individual advice and should not be relied on because each clients circumstances are different.
Keith Churchouse
Director of Churchouse Financial Planning Limited
Churchouse Financial Planning Limited is authorised and regulated by the Financial Services Authority
Tuesday 14 September 2010
Protecting Divorce Maintenance Payments
Even if you are divorced (or going through the process), protecting the family in the event of your death should still be a priority. If you think about it, if you were still married you would want to know that your family was protected if you died. Just because you no longer love your ex-spouse does not mean that you would still want to protect your children. At least they still love you!
One possible way of thinking about this is the amount of maintenance you pay and capitalising this amount to give the total amount needed to ensure that they still get their money if you die.
And talking of the maintenance you pay, if you think about what you have agreed to in your financial settlement and you are paying both spousal maintenance and also child maintenance, this might be agreed as separate amounts. This might be specified in your Consent Order. You may want to set up two payments from your bank account so that each payment can be evidenced, rather than merging both payments into one (even if they are being paid to the same bank account) such as your ex-spouse’s. Although this might be a bit of extra hassle, it may make things clearer if there is a dispute at a later date and payments records are required or if maintenance payments are to be adjusted.
Protecting your payments
Maintenance is usually paid by standing order from the payer’s bank account, but in certain circumstances it can be capitalised as a single payment to the recipient in advance so that he or she is not reliant on the payment each month. This may give the holder of the maintenance some additional security and, from another point of view, some maintenance payers prefer it this way because it keeps contact to a minimum.
For those who have agreed to pay a regular maintenance payment, they may also be required to take out life assurance cover to protect the maintenance payments if they should die in the early years, leaving a family without income. In certain circumstances one ex-spouse takes out life cover on the other. The insured ex-spouse will have to co-operate as medical underwriting may be required and he or she will need to sign the life assurance application forms and fill in the medical questions required. If the spouse is taking the policy out on the life of the ex-spouse then he or she is insuring ‘The life of another’. If the cover levels you require are high, then the medical underwriting may take a little time so make sure that you start the process with time to spare. Most Life Assurance applications can be resolved and completed in around six to eight weeks.
The maintenance receiver pays the premiums for the life cover. This gives the person who receives the maintenance the protection of knowing that the life cover will remain in place and that the premiums required will not stop when no one is looking (or placed in Trust to someone else) because the proceeds will always be paid to the policy owner.
Speak to your financial adviser about the cost of this protection before requesting this as part of your settlement in case the premiums required for the cover are prohibitive. They may also be able to use an existing protection policy, if available and appropriate.
To expand on all things divorce and the fundamentals, I have been able to outline the full process in my new book, Addicted to Wedding Cake, The Journey of Divorce.
Further details of this new book are available at our websites, www.addictedtoweddingcake.co.uk or on Amazon here.
Speak to Churchouse Financial Planning Limited (or your independent financial adviser/ IFA) to help with advice on this issue. This statement is not individual advice and should not be relied on because each clients circumstances are different.
Keith Churchouse
Director, Churchouse Financial Planning Limited
Churchouse Financial Planning Limited is Authorised and Regulated by the Financial Services Authority
One possible way of thinking about this is the amount of maintenance you pay and capitalising this amount to give the total amount needed to ensure that they still get their money if you die.
And talking of the maintenance you pay, if you think about what you have agreed to in your financial settlement and you are paying both spousal maintenance and also child maintenance, this might be agreed as separate amounts. This might be specified in your Consent Order. You may want to set up two payments from your bank account so that each payment can be evidenced, rather than merging both payments into one (even if they are being paid to the same bank account) such as your ex-spouse’s. Although this might be a bit of extra hassle, it may make things clearer if there is a dispute at a later date and payments records are required or if maintenance payments are to be adjusted.
Protecting your payments
Maintenance is usually paid by standing order from the payer’s bank account, but in certain circumstances it can be capitalised as a single payment to the recipient in advance so that he or she is not reliant on the payment each month. This may give the holder of the maintenance some additional security and, from another point of view, some maintenance payers prefer it this way because it keeps contact to a minimum.
For those who have agreed to pay a regular maintenance payment, they may also be required to take out life assurance cover to protect the maintenance payments if they should die in the early years, leaving a family without income. In certain circumstances one ex-spouse takes out life cover on the other. The insured ex-spouse will have to co-operate as medical underwriting may be required and he or she will need to sign the life assurance application forms and fill in the medical questions required. If the spouse is taking the policy out on the life of the ex-spouse then he or she is insuring ‘The life of another’. If the cover levels you require are high, then the medical underwriting may take a little time so make sure that you start the process with time to spare. Most Life Assurance applications can be resolved and completed in around six to eight weeks.
The maintenance receiver pays the premiums for the life cover. This gives the person who receives the maintenance the protection of knowing that the life cover will remain in place and that the premiums required will not stop when no one is looking (or placed in Trust to someone else) because the proceeds will always be paid to the policy owner.
Speak to your financial adviser about the cost of this protection before requesting this as part of your settlement in case the premiums required for the cover are prohibitive. They may also be able to use an existing protection policy, if available and appropriate.
To expand on all things divorce and the fundamentals, I have been able to outline the full process in my new book, Addicted to Wedding Cake, The Journey of Divorce.
Further details of this new book are available at our websites, www.addictedtoweddingcake.co.uk or on Amazon here.
Speak to Churchouse Financial Planning Limited (or your independent financial adviser/ IFA) to help with advice on this issue. This statement is not individual advice and should not be relied on because each clients circumstances are different.
Keith Churchouse
Director, Churchouse Financial Planning Limited
Churchouse Financial Planning Limited is Authorised and Regulated by the Financial Services Authority
Friday 3 September 2010
Autumn 2010 Pension Planning and Changes
With the new coalition government in place, many changes have been proposed for pension planning. I have listed two examples of these below.
State Pension age for men increasing to 66 from 65 in 2016
The State pension age for men is to increase to 66 from 65 in 2016. This is another change that may see a refocus in your pension planning strategy and would recommend that all clients check their state pension benefits if they have not done before. If you would like further guidance on achieving a forecast then please let us know.
Pension Contributions
Some clients trying to make larger pension contributions to enjoy the relevant tax advantages in recent times have had to consider new restrictions applied by HM Revenue and Customs to restrict the level available. These restrictions are now under review and we may see changes to these rules by April 2011. Clearly this is a changing situation and if this situation affects you then please let me know and we can start planning as new information and regulation becomes clearer.
If you plan to review your pension planning in light of these proposals and changes then seek Independent Financial Advice (IFA). This is not designed to provide individual advice. Churchouse Financial Planning Limited is a Chartered Financial Planner and Independent Financial Adviser based in Surrey. They can be contacted on 01483 578800.
Keith Churchouse
Director, Churchouse Financial Planning Limited
Churchouse Financial Planning Limited is Authorised and Regulated by the Financial Services Authority
State Pension age for men increasing to 66 from 65 in 2016
The State pension age for men is to increase to 66 from 65 in 2016. This is another change that may see a refocus in your pension planning strategy and would recommend that all clients check their state pension benefits if they have not done before. If you would like further guidance on achieving a forecast then please let us know.
Pension Contributions
Some clients trying to make larger pension contributions to enjoy the relevant tax advantages in recent times have had to consider new restrictions applied by HM Revenue and Customs to restrict the level available. These restrictions are now under review and we may see changes to these rules by April 2011. Clearly this is a changing situation and if this situation affects you then please let me know and we can start planning as new information and regulation becomes clearer.
If you plan to review your pension planning in light of these proposals and changes then seek Independent Financial Advice (IFA). This is not designed to provide individual advice. Churchouse Financial Planning Limited is a Chartered Financial Planner and Independent Financial Adviser based in Surrey. They can be contacted on 01483 578800.
Keith Churchouse
Director, Churchouse Financial Planning Limited
Churchouse Financial Planning Limited is Authorised and Regulated by the Financial Services Authority
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