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Helping business owners turn their business value into retirement realization is more than just a feel-good goal. Business owners are often high earners whose wealth exists within their biggest asset: their business.
It’s easy to be focused on wealth that exists right now. The clients with the money are the ones willing to pay more, right? That math seems to make sense, until you consider the “HENRY”s (High Earners, Not Rich Yet).
Business owners are perfect HENRYs, and an often overlooked opportunity for wealth advisors who are only focused on current revenue. Building out long-term potential with your clients allows you to take your high-growth “B” clients and nurture them into your next “A” client — before they look for a different wealth advisor at the precipice of their impending wealth liquidity.
To SMB owners, their business is more than just an income stream, it is their retirement plan, their life’s work, their best ideas, and their safety net. Wealth managers play a role in the health and success of business owners due to their positioning to help guide them towards growth, scaleability, and ultimately, an exit plan. Whether through M&A, succession, or other wealth transfer plans, wealth managers and business owner clients both win when working together. With the Great Wealth Transfer upon us, now is the time to build these lasting relationships.
That’s the why, but here’s the how:
1. Talk about the future
The more you know, the more you can grow. Focus on what’s ahead, including goal and expectation setting. When clients experience forward-thinking advisory, they understand that their growth is a mutual goal. Tying yourself to their future of success is key to client retention.
2. Bring new data and insights
Provide strong storylines and data-backed suggestions that help business owners understand the “why” behind different advisory decisions. Showcasing trustworthy data to paint the picture of how and why their wealth should be managed in a certain way will help with friction and enhance the chances of genuine success.
3. Gather feedback
Sometimes asking for feedback can feel awkward, but it is imperative for growth. Whether you choose to do this in 1:1 conversations or something less “personal” like surveys, feedback is valuable. Iterate your strategy as you learn.
4. Stay innovative
Tech and AI are everywhere in this industry, and it can be hard to know where to start. Review your tech stack often, and stay ahead of the curve by onboarding technology that helps with time constraints, data insights, process automation, etc. Without an innovative attitude, you’re bound to outgrow the trajectory of the industry.
The bottom line
Becoming the quarterback advisor to business owners puts you in their corner for eventual M&A, succession, or other wealth transfer plans. Regardless of each SMB’s long-term goals, helping them grow their business effectively will also grow your wallet share as an advisor, because when their largest asset becomes liquid, you get to help them invest it.
About the Author
Matt Beecher
Chief Revenue Officer @ interVal | 5x Founder
Matt Beecher is Chief Revenue Officer (CRO) at interVal. With a proven track record as a five-time founder, fintech veteran and former accounting professional, Beecher brings a wealth of experience and strategic leadership to interVal as the company continues its mission to unlock opportunities and drive optimal growth for its clients.
