Capturing the Affluent Entrepreneur Opportunity – Episode 24
Entrepreneurs are among the largest groups of affluent investors we see—and that alone makes them an ideal niche for many advisors. But as we highlighted in our previous podcast, there are numerous other reasons why you might want to be focused on serving high-net-worth entrepreneurs right now.
- Many entrepreneurs are seriously considering switching their current primary advisors.
- These entrepreneurs aren’t happy with the overall results they’re getting, including poor communication levels from their advisors.
- Business owners prefer advisors who can address both their professional financial concerns and their personal financial needs and wants.
KEY TAKEAWAYS
- Commit to understanding entrepreneurs’ unique needs and aspirations, and the complexities of their financial and business landscapes.
- Build a virtual family office to provide a comprehensive, bespoke suite of services that mirrors the traditional family office’s exclusivity.
- Distinguish yourself by offering tailored succession planning services.
FACE THE FACTS
Here’s how to take advantage of affluent entrepreneurs’ dissatisfaction with their current advisors and their desire to work with professionals who can take a holistic approach with them.
- Battle entrepreneur FOMO. By their very nature, entrepreneurs are always in pursuit of excellence and innovation in all aspects of their lives—including their financial management. This fear of missing out on the next big thing means that even when entrepreneurs are satisfied with their current advisory services, a part of them remains on alert for potentially superior options.
- To meet and exceed the expectations of these dynamic individuals, you must commit to deeply understanding their unique needs and aspirations as well as the complexities of their financial and business landscapes. It’s also essential to adopt a holistic approach to wealth management, one that recognizes the deep interconnection between personal financial goals and business objectives for entrepreneurs.
- Raising the bar in your advisory services entails embracing innovation in all its forms. Whether it’s leveraging new financial technologies that provide better insights and efficiencies or crafting strategic plans that consider the entrepreneur’s immediate and long term journey, you must demonstrate your value as an indispensable partner.
- Assemble a specialist network. Entrepreneurial clients’ needs extend so far beyond traditional financial planning and investment advice that you need to take a multidisciplinary approach. With this in mind, it’s critical that you assemble a network of specialists to provide comprehensive support to entrepreneurial clients. For example, your network may include tax professionals who can navigate the complex tax implications of business operations and investments; wellness coaches who address the often overlooked aspect of personal well-being essential for maintaining peak performance; estate planners who ensure that an entrepreneur’s legacy is preserved and transitioned according to their wishes; and investment bankers, who can offer insights into business valuation or acquisition strategies. Creating such a diverse network requires you to be both deliberate and strategic.
- Distinguish your advisory practice through things like a virtual family office experience. To make your practice more appealing to the entrepreneurial demographic, you should refine your practice and ensure innovation through initiatives like creating a virtual family office (VFO) for high-net-worth entrepreneurs. By adopting this model, you can provide a comprehensive, bespoke suite of services that mirrors the traditional family office’s exclusivity and personalization, but provides the added flexibility and accessibility that result from leveraging digital platforms. This approach showcases your commitment to innovation and your dedication to addressing entrepreneurs’ multifaceted financial, legal and personal well-being concerns.
- Offer strategic advanced planning. Entrepreneurs navigate a complex economic landscape, often with intertwined personal and business finances that present unique challenges and opportunities—and your ability to offer nuanced strategies in tax mitigation, estate planning, asset protection and charitable planning showcases your expertise and commitment to their multifaceted needs. Such an approach requires a deep dive into the entrepreneur’s business model, industry risks, personal goals and legacy aspirations. By customizing these strategies, you demonstrate a keen understanding of the entrepreneurial mindset, highlighting your dedication to your clients’ long-term success and financial well-being.
- Emphasize the importance of succession planning. You can distinguish yourself by offering tailored succession planning services that integrate seamlessly with broader financial, estate and retirement planning. This approach ensures the continuity of the entrepreneur’s business and plays a critical role in the effective management and transfer of wealth. You should proactively engage entrepreneurial clients in discussions about the significance of holistic succession planning, highlighting how it protects their legacy and secures their financial future. To deliver value in this critical area, emphasize the importance of developing a comprehensive succession plan that aligns with the entrepreneur’s personal and business objectives.
The entrepreneur market offers vast potential for financial advisors equipped to meet its unique demands. Our research underscores the importance of advisors adopting strategies that are as dynamic and multifaceted as their entrepreneurial clients themselves.
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