AuthAdmin5097 March 13, 2019

Over the next 10 years, $12 trillion worth of business owner wealth will be exchanged in the United States, presenting a significant opportunity for the financial services industry.

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That said, business owner finances are frequently overlooked by financial planners, with advisors historically focusing on the needs of the “wealthy affluent”, so a new outlook is required for financial planners to take advantage.

Unique Requirements

The financial requirements of a business owner are fundamentally different to the “wealthy affluent”, corporations and their officers.

Where a corporate executive generates much of their wealth through income, a business owner will often take less income during their ownership, with their main wealth to come later following the sale of their business.

While this is fine in principle, a personal highly tax-efficient income can be underbalanced if assets are not being appropriately managed and, by focusing too much on private shares in their own industry, they could be missing out on other opportunities.


Another overlooked financial necessity when it comes to business owners is insurance. According to a recent study by Life Happens and LIMRA, 71% of entrepreneurs need life insurance, but only 59% actually have coverage. In contrast, executives are generally covered through “key person insurance”.

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New Opportunities

Experts predict over ten million businesses will change in the US over the next 10 years. This influx means businesses and owners will need the appropriate strategies in place for wealth management and general financial planning.

Although once overlooked, financial service providers are starting to appreciate the size of the assets under management (AUM) opportunity this prediction offers.

However, with unique requirements comes a necessity for a unique service. Advisors who are looking to take advantage of this expanding market should visit Intelliflo for software for IFAs to ensure their software and recommendations are able to keep up with this changing market.

Only the most successful advisory firms will be able to take advantage of this $12 trillion race. Those who make it will be using top-of-the-range software for IFAs to take a holistic approach when engaging with business owners and stay ahead of the game.

To win, financial planners will need to understand the value of not just the client but their business, technology and private shares and offer personalised products.

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