When your client is a business owner, their company is more than just a line item in their financial plan—it’s often their largest asset, their primary source of income, and the key driver of their long-term wealth. To truly serve business-owner clients, wealth advisors need to go deeper than standard investment portfolios or tax strategies.
Here are the three most important things wealth advisors should know about a business-owner client, because it shapes stronger plans, deepens relationships, and creates opportunities for additional AUM.
1. The Current Value of The Business
Why it matters:
80-90% of business owners have their financial wealth locked up in their companies (CNBC). Without knowing the current value of the business, it’s nearly impossible to build an accurate financial plan. A client may think their retirement is secure based on assumptions about what they’ll eventually sell the business for, but until that number is grounded in real data, the plan is built on shaky ground.
Impact on financial planning:
- Ensures retirement and succession planning are based on realistic numbers.
- Helps identify protection needs (like insurance) to cover risks tied to that value.
- Provides clarity for estate and tax planning.
How it creates opportunities for wealth advisors:
Once you know the business value, you can introduce relevant products and services: succession planning strategies, tax-efficient investment vehicles, key-person insurance, or buy-sell agreements. It gives you a natural entry point to deliver more value—and broaden your offering.
2. The Owner’s Personal and Business Goals
Why it matters:
Every business owner has unique priorities. Some want to maximize growth and reinvest profits, while others prioritize lifestyle and stability. Some dream of selling in five years, others want to pass the business to the next generation. Unless you understand both the personal and business goals, your advice risks missing the mark.
Impact on financial planning:
- Aligns the financial plan with real timelines and personal aspirations.
- Helps identify when to shift strategies—from aggressive growth to wealth preservation.
- Ensures liquidity planning matches up with exit or transition goals.
How it creates opportunities for wealth advisors:
When you know their goals, you can proactively introduce services they didn’t even know they needed: succession planning for family transfers, investment strategies for business sale proceeds, or structures to protect and grow wealth post-exit. This positions you as the go-to advisor—not just a financial product provider.
3. The Business’ Financial Health
Why it matters:
A company’s performance directly impacts a business owner’s cash flow, liquidity, and ability to meet personal financial commitments. Understanding the areas of risk and opportunity within the business allows for deeper insights into the financial stability of the business owner - and, ultimately, better, more proactive advice.
Impact on financial planning:
- Provides insight into how sustainable your client’s income is.
- Identifies risks if revenues are volatile or margins are tight.
- Highlights opportunities for better debt management, tax efficiency, or reinvestment.
How it opens opportunities for you:
Understanding the financial health of the business allows you to tailor solutions or provide timely referrals to other experts to explore things like lending and credit facilities, risk management tools, group benefits, or even investment strategies for surplus cash. By engaging with both the personal and business side, you expand your role and uncover opportunities that other advisors overlook.
Author: Rebecca Cook
