COVER STORY
More than half of entrepreneurs ( 51 %) said they participate in executive leadership / mastermind groups — and nearly all of these business owners ( 98.2 %) find significant value in them .
EXHIBIT 4 :
Entrepreneurs Wanting The Same Advisor For Business And Personal Needs ( ByTotal )
Same Advisor For Business And Personal Needs
56.9 %
Different Advisor For Business And Personal Needs
30.9 %
N = 1,600 Entrepreneurs . Source : © 2024 CEG Insights
Advisor For Both , As Well As Different Advisors For Business And Personal Needs
12.2 %
Virtual family offices use cutting-edge technology to facilitate seamless remote collaboration among a diverse team of specialists , from financial advisors to legal experts . Ultimately , the model addresses problems affluent entrepreneurs have with their current advisors — such as the need for better overall performance , improved communication and more comprehensive services , and thus gives financial advisors using this model a competitive edge . The approach attracts discerning entrepreneurs and fosters long-term relationships , positioning advisors as crucial partners in their clients ’ economic success .
Sourcing High-Net-Worth Entrepreneurs
But before you can show off the advantages of your family office , you ’ ll need to connect with entrepreneurs in the first place . CEG Insights re- search points to some essential best practices for finding prospective clients .
1 . Broaden your referral network . Not surprisingly , given the importance of relationships in the business world , personal referrals are pivotal in connecting financial advisors with entrepreneurs — particularly those with a net worth of $ 5 million or more , 44 % of whom listed referrals as the primary way of finding their advisors . This shows the importance of building robust relationships based on the trust clients have in you ( and your stellar reputation ).
2 . Engage with leadership groups . More than half of entrepreneurs ( 51 %) said they participate in executive leadership / mastermind groups — and nearly all of these business owners ( 98.2 %) find significant value in them . So these platforms offer a golden opportunity for advisors . Active involvement in these groups allows you to showcase your expertise and thought leadership in areas directly relevant to business owners . Here , you can offer insight and raise your standing as an authoritative figure in the community of entrepreneurs .
3 . Develop an area of expertise and demonstrate it to business owners . Among wealthy entrepreneurs , 60.4 % favor financial advisors who are known for possessing deep expertise and specialized knowledge in areas these business owners find essential ( such as investment planning , risk assessment and tax strategies ) and who can deliver bespoke solutions that cater to each client ’ s specific needs . That includes advisors who offer innovative tax planning . You must show off such expertise in your one-on-one discussions with clients , as well as through your presentations and written content .
Redefining The Benchmark Of Excellence
Successful entrepreneurs are one of the best growth markets for financial advisors today . They possess sizable amounts of wealth and are optimistic that it will only increase .
If , as we said earlier , they are unhappy with their current advisors and looking to you , you ’ ll need to make some crucial decisions to win them over . First , you must play to win . You ’ ll need to build a business model that lets you deliver the type of comprehensive , customized wealth management experience that business owners want — one that combines the personal and the professional . By offering this distinguished clientele personalized , innovative and strategically coordinated wealth management solutions , you can solidify your role as an indispensable ally .
JOHN J . BOWEN JR . is the CEO and founder of CEG Worldwide and CEG Insights .
42 | FINANCIAL ADVISOR MAGAZINE | MARCH 2024 WWW . FA-MAG . COM