Business Owners-Construction

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Apr 24, 2007 12:09 pm

Hello everyone, as I have mentioned in the past I am new to the biz and I will be fully certified in about a month, so I am planning ahead and determining my target markets.  My main focus to start will be construction business owners, home builders, land developers, contractors, architects, engineers, anything in the construction field.  I am choosing this field because I feel it is under tapped, it is very profitable and abundant and I have a personal interest/experience in this industry.  I am trying to get feedback on some successful campaigns to attract these type of clients; ie; retirement planning, cash flow, disability insurance, etc.  These are some of my initial ideas, can anyone provide me some specific advice for dealing with this field?  Please be as specific as possible,


thanks, mooose

Apr 24, 2007 12:41 pm

With the individual contractors that I have dealt with and depending on how they have their business structured (sole proprietor, s corp, c c corp, llp ) and how many employees they have, I have used the following.


Owner 401K plans: really allows them to put a lot into retirement with the ability to take loans from their own 401K.  Very popular option.


Simple IRA plans: inexpensive for them and the employees either really like it or don't contribute at all.


DI was always problematic for the contractors.  Depended on how personally active they were in the construction process as to them being qualified or rated.  A good idea though for any presentation as it makes them think more about their own mortality.


Buy sell agreements and funding with life insurance has always been a good one too.  If you have contracted with a good insurance company they can provide you with a lot of sales material and hypos for this. Of the case is big enough you might see if they have a field agent/expert who will come with you for the presentation. This is probably one of the most overlooked business planning issues for small businesses.  That and business continuation/succession planning.


I have done seminars directed at small business planning, retirement planning, tax advantages, etc sponsored by the Chamber of Commerce. They work out nicely. You might also see if your local Rotary club is in need  of a speaker and use those topics.  Most of their members are business owners.


Apr 24, 2007 12:44 pm
mooose:

Hello everyone, as I have mentioned in the past I am
new to the biz and I will be fully certified in about a month, so I am
planning ahead and determining my target markets.  My main focus
to start will be construction business owners, home builders, land
developers, contractors, architects, engineers, anything in the
construction field.


Home builders et al will be very interested in learning about sheltering assets from creditors in bankruptcy.


I am choosing this field because I feel it is under tapped, it is very profitable (not anymore!!) and abundant and I have a personal interest/experience in this industry. 

I am trying to get feedback on some successful campaigns to attract
these type of clients; ie; retirement planning, cash flow, disability
insurance, etc.  These are some of my initial ideas, can anyone
provide me some specific advice for dealing with this field? 
Please be as specific as possible,



Buy puts on XHB.

Apr 24, 2007 1:02 pm
mooose:

Hello everyone, as I have mentioned in the past I am new to the biz and I will be fully certified in about a month, so I am planning ahead and determining my target markets.  My main focus to start will be construction business owners, home builders, land developers, contractors, architects, engineers, anything in the construction field.  I am choosing this field because I feel it is under tapped, it is very profitable and abundant and I have a personal interest/experience in this industry.  I am trying to get feedback on some successful campaigns to attract these type of clients; ie; retirement planning, cash flow, disability insurance, etc.  These are some of my initial ideas, can anyone provide me some specific advice for dealing with this field?  Please be as specific as possible,


thanks, mooose



Mooose, I'll give you some general help. First, as business owners construction business people face the same challenges as all small business people. You've hit on some of the major areas, of cash flow and retirement plans. However, the first decision you should make is whether you want to prospect them on a business need or on a personal need. I went and go the personal route using munis and other high yield "appeal to greed" types of investments to grab their attention. Small business owners are the ultimate risk takers. Instead of playing it safe with a salaried career they've staked their future on themselves. They understand risk. I use that "trait" to gain entry. On the other hand my wife, who is also an advisor who prospects small businsses, has always gone the business need route. Usually there is a longer lead time for this route to reach critical mass, but once it does stand back and watch your career take off.


More specifically, to go the business need route you need to know what those needs are. Find the trade groups and publications that cater to your target market. Get to know who the movers and shakers are within the industry and within your area. Find out what issues are important to your prospects. Being able to talk their language and understand their concerns will make you a resource to this group. And that should open a lot of doors. The downside, is it may take a while for this route to gain traction.


Apr 24, 2007 4:46 pm

mooose,


Good luck with them, but do keep in mind that (if you are talking about individual contractors) they are "real estate centric".


A few of my friends are contractors. I don't think any of my clients ever have been (so I'm not claiming expert status here) and architect here or there, but.... Contractors that I know are very tangibles oriented people and they are people who invest in what they know. They know real estate. They buy beaters and refurbish them, they rent them out and they buy another beater.


They REALLY should have disability insurance (you made sure you got the health insurance right?) one of my buddies is having a problem right now that could be curtains for his business.


I think that it is a market where they SHOULD absolutely listen to you, but keep in mind that they listen to the insurance guy (who they HAVE to talk to) and they hear from the three other guys who just made a killing by flipping the house down the street, and so if they could put together a few bucks each... meanwhile, when they're all making money, the hot spot is real estate and when they are convinced that maybe they ought to look elsewhere, it's because they aren't making any money. (Good luck talking them into selling the investment properties.)


It's certainly worth pursuing, and I wish you luck. It deserves a dedicated effort, but don't over egg that basket.

Apr 27, 2007 6:37 pm

I would open cma accts for them on new issue preferreds and/or reits.

Apr 29, 2007 11:35 am
mooose:

Hello everyone, as I have mentioned in the past I am new to the biz and I will be fully certified in about a month, so I am planning ahead and determining my target markets.  My main focus to start will be construction business owners, home builders, land developers, contractors, architects, engineers, anything in the construction field.  I am choosing this field because I feel it is under tapped, it is very profitable and abundant and I have a personal interest/experience in this industry.  I am trying to get feedback on some successful campaigns to attract these type of clients; ie; retirement planning, cash flow, disability insurance, etc.  These are some of my initial ideas, can anyone provide me some specific advice for dealing with this field?  Please be as specific as possible,


thanks, mooose



How do you plan to approach these business owners? 

How do you plan to position yourself with credibility to gain an audience with these business owners?

If you were to walk in COLD to such a business owner, what would you say to get their attention and to agree to another meeting?

Who do you know that might know business owners such as this?  Do you think they will help to introduce you to them?

Since you want specifics:  Search this forum (and other financial planning forums) for the "5 ways" out of business.  If you can't find it that way, search for Burt Meisel.  Also, order the book:  Red Hot Introductions from National Underwriter.  It'll be the best $13 you'll ever spend so you can network and be introduced to your preferred targeted prospect.

Apr 29, 2007 3:10 pm
skippy:



How do you plan to approach these business owners? 

How do you plan to position yourself with credibility to gain an audience with these business owners?

If you were to walk in COLD to such a business owner, what would you say to get their attention and to agree to another meeting?

Who do you know that might know business owners such as this?  Do you think they will help to introduce you to them?

Since you want specifics:  Search this forum (and other financial planning forums) for the "5 ways" out of business.  If you can't find it that way, search for Burt Meisel.  Also, order the book:  Red Hot Introductions from National Underwriter.  It'll be the best $13 you'll ever spend so you can network and be introduced to your preferred targeted prospect.



Hey dude!

Apr 29, 2007 5:54 pm

Hey Joe!

My old moniker NEVER worked (nor got the activation email), so I picked a name out of the blue to go with my new email address.

Glad to be back!

Apr 29, 2007 6:07 pm
skippy:

Hey Joe!

My old moniker NEVER worked (nor got the activation email), so I picked a name out of the blue to go with my new email address.

Glad to be back!



lol...I knew it was you when I saw the tagline!

I don't think your avatar would be welcomed here......

S- T - F - U!  (If I recall correctly....)

Apr 29, 2007 6:32 pm

It could be a very key message for some people at times.    

Apr 29, 2007 7:05 pm
skippy:

Hey Joe!

My old moniker NEVER worked (nor got the activation email), so I picked a name out of the blue to go with my new email address.

Glad to be back!


The first name that popped into your head is a GAY name?

Apr 29, 2007 8:00 pm

Are these little one-line posts the only things that come up in your mind to say?  It sounds like you should Shut the F*** Up and learn something and contribute meaningfully.  It's time to leave first grade, buddy.

Next time I choose to participate on a forum, I'll be sure to PM the biggest pain in the ass on that forum for their input so I have an "approved" name.  Would that be okay with you??? 

Perhaps you should ask the forum owners to add those instructions to all new forum participants, so you can try to have some simulated control and have some meaning in your life.

Or, more appropriately, click on the link in my signature for a review in how to act and behave in an online setting.


While you do that, I'll go get INK ON PAPER.  That's what it's all about.

Apr 29, 2007 8:48 pm
skippy:

Are these little one-line posts the only things that come up in your mind to say?  It sounds like you should Shut the F*** Up and learn something and contribute meaningfully.  It's time to leave first grade, buddy.

Next time I choose to participate on a forum, I'll be sure to PM the biggest pain in the ass on that forum for their input so I have an "approved" name.  Would that be okay with you??? 

Perhaps you should ask the forum owners to add those instructions to all new forum participants, so you can try to have some simulated control and have some meaning in your life.

Or, more appropriately, click on the link in my signature for a review in how to act and behave in an online setting.

While you do that, I'll go get INK ON PAPER.  That's what it's all about.


Struck a nerve, didn't I? Nice to see you, Brent.

Apr 29, 2007 9:08 pm

Thanks for the compliment, but I'm not Brent.

Apr 29, 2007 9:32 pm
skippy:

Thanks for the compliment, but I'm not Brent.


The guy has lost his securities and insurance licenses and you take that as a compliment? No wonder a gay name is the first thing that popped into your head. When I say the word "tool", how long does it take for the word "hammer" to finally pop into your mind?