Description
Of those individuals with more than $1 million in assets, about one quarter described themselves as business owners according to the US census data. Financial advisors need to educate themselves on what makes business owners tick. Watch the video to learn more.
AI-Generated Transcript
What FAs Should Know About Business Owners
[00:00:00] Antoinette Rodriguez: Advising a business owner can be very different from advising other job-oriented types of high-net-worth individuals. Of those individuals with more than $1 million in assets, about one quarter described themselves as business owners according to the US census data.
[00:00:22] Antoinette Rodriguez: For the business owner or entrepreneur, there is usually a correlation between business and personal wealth. Naturally, a large part of the business owner’s holdings is likely to consist of shares or investments in their own business. FAs need to educate themselves in the target industries, niche businesses, and business life cycles.
[00:00:45] Antoinette Rodriguez: It appears that the thing most FAs need to appreciate about business owners is that they generally have one word in common. They are used to being in CONTROL.
[00:00:58] Antoinette Rodriguez: Many have run or created their [00:01:00] businesses according to their own vision and from the ground up. If they are successful, they may perceive their opinions, including financial matters, to be superior to others. And this point is crucial to their sometimes-unspoken doubts about why they should turn over their hard-earned assets to an FA; when they have masterfully created the assets to begin with. This issue will be a particular challenge for advisors who do not have gray hair or those who target more traditional brick-and-mortar type businesses.
