Aiming to add owners of small businesses as clients? Look for younger prospects — preferably women.
At least that's what two recent surveys of small-business owners suggest. One, conducted by Securian Financial Group Inc., found that 43% of surveyed female small-business owners are likely to use a financial adviser. Securian said that figure is higher than the percentage of male bosses of small business who said they are likely to contact a financial adviser. The firm did not, however, provide that figure.
Either way, female small business owners are not exactly a small demographic. Women own at least half of 10.1 million businesses, or about one-third of all small businesses in the U.S., according to the Bureau of Labor Statistics.
Another factor to consider: Securian found that owners likely to use an adviser tend to be younger.
The results, while informative, may not be good news for male advisers seeking to boost their number of female clients. According to a survey conducted by The American College, women who own small businesses would much prefer a female financial adviser, by 61%. The college, which specializes in financial services, surveyed 1,255 advisers.
Men are even more prone to prefer their own gender, with 75% saying they would pick a male adviser, according to the college's survey. But it's the women who are more concerned about financial issues and more likely to say they need help.
RELATED ITEM How to pitch small-business clients »
Not surprisingly, the top concern for female business owners is retirement planning. About 44% of the surveyed women have consulted with an adviser about it. About a third of the male respondents have, the college reported.
One way to impress business owners is with a team approach, said Kerry Geurkink, director of annuity marketing at Securian. “Partner with a team of experts, such as an accountant and business consultant,” she said. “If you are just trying to go in with one solution, the adviser runs the risk of being marginalized.”
