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“Our research shows small business owners have many financial concerns, but only half work with financial advisors,” said
“Small but mighty: Growing opportunities for financial advisors and small business owners”is a summary of Securian’s deep dive into the financial concerns small business owners consider paramount. The online, statistically valid survey of 435 SBOs across the US shows their top financial concerns include cost control, profitability, building wealth, financial security for their families and rising health care costs.
Ironically, the percentages of SBOs who want outside assistance with these concerns is much larger than the percentage who actually seek and use it. (chart page 4)
There are circumstances under which SBOs consider seeking a financial advisor’s services. All fall in the typical advisor’s “sweet spot,” including business succession planning, personal finance, asset management and employee benefits. (chart page 6)
How does an advisor get on a small business owner’s radar? Recommendations from family members, business acquaintances, and other financial professionals provide the best entrée to an SBO. (chart page 7) Clearly, networking with bankers, accountants and attorneys is important.
“But once that first meeting is scheduled, the advisor must demonstrate expertise in running a small business,” say Geurkink. “That part should come easily since financial advisors themselves are small business owners.
“Above all,” she adds, “advisors must prove that assistance from a financial consultant is an investment rather than an expense. Our job is to provide our producers with the tools they need to make that case.”
Geurkink says Securian will use the research to develop a “Small But Mighty” campaign that gives advisors a step-by-step approach to building their small business clientele.
Small business owners surveyed met these requirements:
- Private company ownership, sole or shared
- At least 50 percent responsibility company financial decisions
- At least 50 percent responsibility for household financial decisions
- For-profit company not in marketing, market research or financial planning
- Three to 250 employees
- Minimum of one year as owner.
Quotas ensure representation by company size and owner gender. Data are weighted to reflect the proportion of business size and female ownership (33%) in
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