The Year 2 Renewal Cheat Sheet The NextGen Academy How to keep clients engaged, paying, and growing after the first-year The Year 2 Issue Year 1 of advisory is exciting. You reveal their numbers for the first time. They see the gap. They feel the potential. They sign up. The wow factor does a lot of the heavy lifting. Year 2 is different. The numbers aren’t new anymore. The big wins may already be banked. The client knows the process. And you’re sitting in a meeting thinking: what do I actually talk about now? This is normal. Every advisory firm hits this. And the members who retain 90%+ of their advisory clients beyond Year 1 aren’t doing anything magical — they’re just prepared for the three types of client they’ll meet in Year 2, and they know what questions to ask each one. This cheat sheet gives you the question banks, the frameworks, and the mindset shift you need to make Year 2 just as valuable as Year 1 — for you and for them. The Three Year 2 Client Types When you sit down for the first Year 2 planning conversation, you’ll meet one of three people. Recognising which one you’re dealing with — quickly — determines the entire shape of the conversation. Type 1: The Over-Shooter What happened: They set ambitious goals in Year 1. They didn’t hit them. They may feel deflated, embarrassed, or question whether the advisory is “working.” The risk: They scale back their ambition to the point where the plan becomes too conservative to be useful. Or worse, they disengage entirely. What to do: Reframe the miss as progress. Show them the performance vs. the plan AND vs. where they were before the plan. Almost always, they’re significantly ahead of where they started — they just didn’t hit an aspirational target. That’s aim-for-the-stars-hit- the-moon territory, and it’s a win. Then recalibrate: “Let’s be more realistic this year, but still stretch ourselves. Because if we set targets too small, we’re not pushing hard enough. And if we hit those easy targets, we’ll always wonder: could we have done more?” Questions to ask: “Looking at where you were 12 months ago vs. now — what do you notice?” “What feels different about the business now compared to a year ago?” “If we’d set a more realistic target, what would you have been happy to achieve?” “What did we learn about your business from the goals we didn’t hit?” “Where do you want to push this year — and where do you want to be conservative?” Type 2: The “I’m Done Now” Client What happened: They hit (or exceeded) their Year 1 goals. They feel good. They might think: “Job done. I don’t really need this anymore.” The risk: They reduce the service or cancel it entirely. They think the value was a one-off event, not an ongoing relationship. What to do: Never accept “I’m done.” There’s always a next question. It might be about lifestyle — can they work fewer days? It might be about exit planning — is the business too dependent on them? It might be about protection — what happens if they can’t work? The key is to take the conversation beyond the numbers and into their life. Business feeds life, not the other way around. If they’re comfortable with profitability, great — then the conversation shifts to freedom, time, legacy, and protection. Questions to ask: “You’ve hit your targets, which is brilliant. So what does ‘enough’ look like for you?” “If the business stayed at this level for the next 5 years, would you be happy?” “How many days a week do you want to work? Is that what you’re doing now?” “If you couldn’t work for 3 months, what would happen to the business?” “Is there an exit in your future? If so, when — and what does the business need to look like to get the price you want?” “What would need to change for you to work one day a week and the business still runs?” “Shall we go into maintenance mode — quarterly check-ins, less intensive — or is there something else you want to tackle?” Type 3: The “Let’s Go Again” Client What happened: They loved Year 1. They’re energised. They want more. The risk: Very little. Just don’t let them set crazy goals again without learning from Year 1. What to do: Channel their energy. Use Year 1 as the baseline and build on it. Push them on the next level of growth — which is usually about efficiency, not just more revenue. Questions to ask: “What worked best in Year 1 that we should double down on?” “What didn’t move the needle as much as you expected?” “Where’s the biggest untapped opportunity in your business right now?” “If you could only focus on one thing this year, what would have the most impact?” The Year 1-2-3 Advisory Journey Having a clear framework for what each year of advisory focuses on helps you guide the conversation — and helps the client understand why this is an ongoing relationship, not a one-off project. Sharing this framework with your client is powerful. It shows them that Year 1 was just the foundation. There’s a clear reason to keep going — and it’s about their life getting progressively better, not just their numbers getting bigger. YEAR FOCUS THE BIG QUESTION Year 1 Get everything sorted. Maximise revenue. Optimise costs. Fix the fundamentals. Establish the baseline. “Where are you now, and what’s possible?” Year 2 For some businesses, it will be more of year 1. They may not have hit where they wanted to get. Or they may want to go bigger! For others, it might be more about making it more efficient. New revenue streams. Productivity and time. Lifestyle alignment. “Where are we going now?” “How do we make this work harder for you?” Year 3+ Expand, step back, or exit. Scale, reduce hours, build for sale. Future- proof the business. “What do you want your life to look like — and does the business support that?” When the Obvious Levers Are Done In Year 1, the conversation is relatively straightforward: revenue, gross profit, overheads, the 5 Levers. But by Year 2, you may have already bashed out the obvious wins. Revenue is close to capacity. GP margin is tight. Overheads have been trimmed. So what do you talk about? Shift from Growth to Efficiency The Year 2 conversation is less about “how do we grow?” and more about “how do we make what we’ve got work harder?” Revenue per employee (or per owner): This is often the most productive Year 2 conversation. If your client is capped on revenue, the question becomes: how productive is each hour they spend? What could be automated? What could be delegated? What’s taking time that shouldn’t be? Questions to ask: “If I asked you to map your typical week, what percentage of your time is spent on billable/fee-earning work vs. everything else?” “What tasks do you do that someone else could do for a fraction of your hourly rate?” “If you were operating at 100% productive capacity, what would your revenue be? What is it now? What’s the gap?” “What would it cost to hire a part-time VA or admin to take 5 hours a week off your plate? And what would you do with those 5 hours?” “Is there anything in your business that you do manually that could be automated with the right system?” New Revenue Streams If their core service is maxed, where’s the next revenue coming from? This is where you go beyond the numbers and into business strategy. One-to-many models, digital products, subcontractors, productised offerings, licensing, partnerships. Questions to ask: “You’ve maxed out the time you can personally sell. So how do we generate revenue that isn’t dependent on your time?” “Is there anything your clients regularly ask for that you don’t currently offer?” “Could any part of what you do be turned into a course, template, or group programme?” “What if you brought in a contractor — not an employee — who could deliver some of your service while you take a commission?” “If this new revenue stream existed, what would the first 12 months look like? Let’s put some numbers around it — even rough ones.” The Productivity Gap Analysis For service-based businesses, especially, there’s a powerful exercise: compare what their revenue would be at full productive capacity (without burning out) vs. what it actually is. The gap is their opportunity. It’s usually caused by admin, inefficiency, poor systems, or doing work below their pay grade. This can be offered as an add-on service if it’s not included in the current package. It’s tangible, practical, and immediately useful. The “Subdued Meeting” Problem Year 2 meetings feel different. The first year, you’re revealing their numbers for the first time. There’s energy, surprise, emotion. By Year 2, they know the process. The novelty has worn off. You may come out of meetings thinking: “I didn’t really do much in that one.” This is normal. And it’s also wrong. The value you provide in Year 2 shifts from revelation to relationship. You’re now the intelligent friend — the person who knows their numbers, knows their hopes, dreams, and fears, and provides a safe environment to think out loud. They can say things to you that they can’t say to their family, their friends, or their employees. The value you might not see: A trusted space to have honest conversations about their business Pattern recognition — you see things in their numbers automatically that they would never spot Accountability — they’re more likely to follow through because they know they’re meeting you Early warning — you catch problems before they become crises Rational challenge — you’re the person who says, “walk me through why you think that’ll work.” If the client is still paying, still turning up, and still engaging in the conversation — you’re delivering value. Don’t confuse the absence of drama with the absence of impact. “You don’t always have to be the firework. Sometimes the value is being the steady light they can rely on.” Conservative Clients with Limited Headroom Some clients — especially solo practitioners or micro businesses — have genuinely limited room to move. Revenue is capped by time. GP margin is fixed by their cost structure. Overheads are already lean. The benchmarking shows very little gap. This doesn’t mean there’s nothing to advise on. It means the conversation needs to shift. What to focus on: Efficiency: not bigger, but smarter. Where are they losing time? What could be automated or delegated? Tax and cash planning: “If we follow this plan, how much should I save for taxes? How much can I pay myself?” This is hugely valuable to solo operators. New revenue thinking: even if they’re not ready, plant the seeds. Add revenue lines for future streams at zero or nominal value. They’re there for when the conversation is ready. Lifestyle: time off, cover, contingency. What happens if they’re sick for a month? Practical tip: In the Clarity platform, add revenue lines for future revenue streams (courses, groups, subcontractors, etc.) at zero or one pound/dollar. This means the line is there, visible, ready to populate. It gives you a natural conversation prompt at every review: “Shall we look at this line? Has anything changed?” Without forcing it. For the Year 2 plan: If historic trend shows a negative or flat trajectory, and the client wants to keep things steady, that’s OK. Set the plan at last year’s actuals and put the stretch into the new revenue streams. You’re not forcing growth — you’re creating the space for it when they’re ready. “The plan is only there to spark the conversation. If you put something in, you’ve got something to talk about. If you leave it blank, you’ve got silence.” Protect Your Fees: Scope, Extras, and Add-Ons One of the hidden dangers of Year 2 is scope creep. You’re comfortable with the client. They’re comfortable with you. They start asking for extras — custom analyses, deeper dives, ad hoc projects — and you just do them because it’s easier than having the fee conversation. Stop doing that. Three steps to fix this: 1. Audit your extras. Write down every repeatable extra thing you do for clients beyond the standard service. There will be a pattern. These are your productisable add-ons. 2. Productise them. Give each one a name, a short description, and a price. Create a simple menu. This isn’t about being rigid — it’s about knowing the value of what you do, and being able to communicate it clearly. 3. Always show the value. Even if you discount or waive the fee, always send an invoice with a credit line showing the normal price. The client needs to see that this has value, even when you’re choosing not to charge for it. The moment they stop seeing the value is the moment they start expecting it for free forever. For your top-tier package: If your top package already bundles advisory, make sure the scope is clearly defined. “Custom analyses and ad hoc projects are available as add-ons.” This isn’t about being difficult — it’s about setting a boundary that protects both your time and the perceived value of the extras. “If you don’t put a price on it, they won’t put a value on it.” Year 2 Question Bank Use these questions to spark deeper Year 2 conversations. Not all will be relevant to every client — pick the ones that fit. Reviewing Year 1 Performance “Let’s look at where you were 12 months ago vs. now. What stands out to you?” “What are you most proud of from the last year?” “What didn’t go to plan — and what did we learn from that?” “If you had to grade yourself out of 10 on the effort you put into the plan, what would you give yourself?” “What goal did we set that, looking back, was unrealistic? And what would have been more useful?” Setting Year 2 Goals “What does a good year look like for you this year — not in numbers, but in how you feel?” “What’s the one thing that, if it changed, would make the biggest difference to your business?” “What’s the one thing that would make the biggest difference to your life?” “Shall we be more conservative with targets this year, or do you want to push harder?” “If we set a goal and you smash it by June, what do we do then? Shall we build in a stretch target?” Efficiency and Time “Where do you spend most of your time in the business? Is that where you should be spending it?” “What would you stop doing tomorrow if you could?” “What’s the highest-value hour of your week? And how many of those hours do you actually get?” “If I told you that you had to take next Friday off every week, what would break?” “What would a part-time VA or admin do for your week?” New Revenue and Growth “We’ve maxed out the obvious revenue. So where does the next £10k/year come from?” “Is there something your clients keep asking for that you don’t offer yet?” “Could any part of your expertise become a product — a course, a template, a group?” “If you brought in a contractor to deliver part of the service, what would that look like financially?” “What would this business look like with two revenue streams instead of one?” Lifestyle, Exit, and Long-Term “In 3 years, how many days a week do you want to work?” “If you couldn’t work for 3 months, what would happen?” “Do you ever think about selling the business? If so, what would it need to look like to get the right price?” “Is the business too dependent on you? What would have to change for it not to be?” “What does ‘enough’ look like — and are you there yet?” Remember: Year 2 isn’t about recreating the wow factor of Year 1. It’s about deepening the relationship, proving ongoing value, and helping your clients build a business that gives them the life they want. That’s worth far more than a one-off revelation — and it’s why they’ll stay with you for Year 3, 4, 5, and beyond. Be#er Business | Be#er Life | Be#er World®