 There is a large degree of distrust and anger towards financial institutions as a whole and a great deal of resentment towards those that have paid out large bonuses after receiving government money. Business owners take this personally; more so because they are managing their business in a much more ethical manor yet they are feeling the repercussions of those that are not.
Over half of Business Owners enjoy investing and would not like to give it up. Just over half of Business Owners believe they will do more of their financial transaction and research online in the future. Among those who depend entirely on their advisor, just over a quarter anticipate doing more online in the future. 
Most Business Owners have an established plan for reaching their financial goals. As part of this plan they have determined definite objectives towards which to work to reach their goals, and they regularly review this plan. As part of this plan, just over half feel it involves disciplined saving and regularly setting and reaching goals.
Only 20% anticipate reaching their goals because of a big monetary event such as receiving an inheritance or selling a business. This is interesting because these investors all own or have partial ownership of a privately owned business. Most Business Owners anticipate their wealth will come from working and building the business, instead of from the value of selling the business.
Advisors must position themselves and their firm as having the expertise and knowledge which will enable them to develop recommendations that Business Owners will accept and need; including advice about evaluating a business for sale, succession planning, and reevaluating the plan that Business Owners have in place as the market and financial environment change. Implementing these recommendations in a collaborative manner with the Business Owner is the key to ensuring a strong relationship.
Business Owners expect at least weekly communication that is deep in content. This approach positions the advisor as adding value while recognizing the Business Owner’s investment and financial knowledge. Weekly client touches demonstrates an involved advisor. “Returning phone calls promptly” is the single most important thing a financial professional can do for Business Owners in order to provide loyalty. Promptly is defined as three hours or less.
This group of HNW investors has been buffeted and banged up by the economic downturn in a way the other groups of HNW investors haven’t. Reestablishing a relationship built on trust and a partnership will help calm the fears and assuage the anxiety of this important group.
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High Net Worth Advisor Insights Newsletter April 2008
