Unlocking the Business Owner Niche: A Growth Strategy for Advisors

Business owners control approximately $9.9 trillion in assets and represent one of the most significant opportunities for practice growth in today's market – and yet, most financial advisors aren’t targeting them effectively. 

According to recent research from the Financial Planning Association, a staggering 65% of small business owners don't currently work with a financial advisor. This represents a massive opportunity gap that forward-thinking advisors can capitalize on if they're properly equipped to serve this unique demographic.

The Untapped Market: Business Owners Without Guidance

According to the U.S. Chamber of commerce, there are approximately 33 million small businesses in the United States. The owners of these businesses face complex financial challenges that go far beyond traditional investment management:

• Succession planning that addresses both business continuity and personal retirement needs
• Risk management that protects both personal and business assets
• Tax strategies that coordinate business structure with personal financial goals
• Retirement planning without the built-in structure that W2 employees enjoy

The $7.9 Trillion Wealth Transfer: A Time-Sensitive Opportunity

What makes this opportunity even more compelling is its urgency. We're in the midst of what some analysts are calling the greatest wealth transfer in history. According to Cerulli Associates, approximately $7.9 trillion in business assets will change hands over the next decade as baby boomer business owners transition to retirement.

This creates a critical inflection point for financial advisors. Business owners approaching retirement need guidance on:

• Assessing transition priorities and options
• Understanding pathways that align with personal goal
• Preparing their finances for life after business ownership
• Connecting with specialists when specific expertise is needed

Without clear direction and proper planning, business owners risk exits that don’t align with their needs and expectations. In fact, over 50% of business owners report being dissatisfied with the outcome of the sale of their company.

Advisors who position themselves as trusted partners now—before these transitions occur—can build relationships that serve both the business owner's immediate needs and their long-term financial goals.

Breaking Down Barriers: How to Serve Business Owners More Effectively

The challenge for many advisors isn't recognizing the business owner opportunity but feeling equipped to address it. Many hesitate to pursue business owner clients because they lack confidence in their own business-related knowledge.

This is where technology solutions like RISR come into play. Our platform was designed specifically to help advisors bridge this confidence gap by:

• Providing intuitive tools that transform complex business data into actionable insights
• Offering templates and frameworks that guide conversations around transition planning
• Automating analysis that helps identify priorities based on the owner's goals
• Creating visualizations that make business financials accessible and meaningful

Advisors don't need to become business consultants to serve business owners effectively. Instead, they need to understand and address how business ownership affects personal financial planning.

1. Identify existing clients who own businesses, even if you're not currently advising them on business matters
2. Initiate conversations about their transition timeline, understanding that this might be years away but requires advance planning
3. Focus on aligning business decisions with personal goals, helping them see the connections between the two
4. Introduce planning around key transition pathways:

• • Family succession
  • Employee ownership
  • Third-party sale
  • Orderly wind-down

The goal isn't to advise on business operations or deal structures, but rather to help business owners understand how their business decisions impact their personal financial futures.