If you're looking for high-net-worth clients — and who isn't? — there are a few tried and true ways to find them. One is to be the manor born. If you have a III at the end of your name, three generations of Ivy League alumni behind you and cousins who answer to Tad and Bink, you know where to find wealthy clients. Or, you might connect with top corporate executives, if you happen to travel in those rarified circles. But in most cases, the shortest line between you and a wealthy client is through the local business directory. That's where you'll find the men and women who are building up their enterprises, amassing family fortunes and (whether they know it or not) are in great need of investing and wealth management advice.
So, become a small-business advisor! Easy to say. Not so easy to do. That's why Registered Rep. is bringing you The Small Business Advisor, a new magazine within our magazine, that will deal specifically with building and maintaining a practice with small-business owners. Why? Because these clients are probably the most demanding you will ever encounter, and because they have special needs that go beyond those of the average high-net-worth investor.
In addition to the routine investing goals — building up retirement and investing savings — small-business owners have to think about how to sell out or pass their holdings on to children or even employees (see story, page 10). That means devising wealth management strategies for the client, including plans to diversify investments and creating trusts. It can also lead to the establishment of a multigenerational relationship with a high-net-worth family — and all the referrals that can generate.
For some reps, a small-business practice can lead to a whole new way of doing business. They soon go beyond serving the investment needs of the owner and a few top executives and, in effect, become business consultants. Reps can set up companywide retirement plans, sell key-employee life insurance and help companies offer college-savings and profit-sharing plans. They can even help connect businesses to sources of capital. Registered Rep.'s Small Business Advisor, which will appear quarterly, will show you how it's done.
We are eager to hear your feedback on this issue and welcome your suggestions.