A Growth Market
The advisors we surveyed hold a total of $ 32 billion in assets , and come primarily from the Gen X , millennial and baby boomer generations . They all share optimism about their future success ( see Exhibit 1 ).
• 86.4 % of them think they will significantly exceed or somewhat exceed their past personal wealth growth in the future .
• 81.7 % think they will exceed their previous business growth .
• A mere 1.7 % of them expect a downturn in personal wealth growth , while just 3.2 % foresee a decline in business growth .
EXHIBIT 1 :
Entrepreneurs ’ Outlook For Personal Growth And Business
Growth ( By Total )
Personal Growth
Future Personal Growth Will Significantly Exceed Past Growth
54.3 %
Business Growth
Future Business Growth Will Significantly Exceed Past Growth
51.2 %
EXHIBIT 2 :
Entrepreneurs ’ Likelihood Of Switching Their Primary Advisor In The Next Two Years ( By Total )
Very Likely
20.0 %
Future Personal Growth Will Somewhat Exceed Past Growth
32.1 %
Future Business Growth Will Somewhat Exceed Past Growth
30.5 %
N = 2,049 Entrepreneurs . Source : © 2024 CEG Insights
Somewhat Likely
18.4 %
N = 1,600 Entrepreneurs . Source : © 2024 CEG Insights
Future Personal Growth Will Be Similar To Past Growth
11.9 %
Future Business Growth Will Be Similar To Past Growth
15.0 %
Somewhat Unlikely
23.4 %
Future Personal Growth Will Be Less Than Past Growth
1.7 %
Future Business Growth Will Be Less Than Past Growth
3.2 %
Unlikely
38.3 %
Our research suggests there ’ s a rich landscape for wealth management experts looking to engage with this expanding sector , so you have a good opportunity to tap into this optimism , providing targeted strategies to support these business owners ’ growth ambitions and secure their financial future .
Pivoting To New Talent
The other big news for advisors in CEG ’ s findings is that many of these entrepreneurs say they ’ re underserved by their current advisors , signaling a substantial opening for new advisory relationships :
• 20 % of entrepreneurs are very likely to switch their primary financial advisor within the next two years .
• Another 18.4 % say they ’ re somewhat likely to make that switch .
Of those we surveyed , 38.4 % said they ’ re open to working with new advisors . That ’ s an urgent call for you to position yourself with the services , solutions and overall experience they want .
Redefining Wealth Management For Entrepreneurs
Entrepreneurs with more than $ 5 million in assets are searching for more than the usual wealth management services , which means advisors must improve their offerings . Entrepreneurs and wealthy people in general harbor a fear of missing out when it comes to the most cutting-edge financial strategies ( see Exhibit 3 ).
• While 72.2 % of them said they receive investment management services , 75.4 % of them said they wanted more than the status quo when it comes to investment opportunities , so advisors must go above and beyond and tailor opportunities to these clients .
• Wealthy business owners are also looking for innovative tax solutions , but while 52.2 % say they ’ re getting it , a higher number , 58.3 %, say they want it . That ’ s a gap advisors can take advantage of by introducing proactive and creative tax strategies to improve outcomes .
• Wealthy business owners also fear missing out on sophisticated estate planning techniques ( only 49.4 % of them say they receive advice in this area , yet more of them , 56.6 %, expect it ). Again , advisors can fill the gap by crafting tailored estate plans .
• There ’ s yet another expectation gap when it comes to succession planning : only 21.9 % receive advice for this , while 29 % of those surveyed say they expect succession strategies , which they require to fortify their business legacies and continue serving their markets .
40 | FINANCIAL ADVISOR MAGAZINE | MARCH 2024 WWW . FA-MAG . COM