Take me to a leader: Survey finds small business lacks guidance, confidence |
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Written by U.S. Insurance News
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Sunday, 20 July 2003 |
Despite consulting numerous financial professionals for business and personal planning advice, only a third of small business owners feel very certain they've appropriately planned for their business' future. This is a key finding of "Financial Advice Today: A Small Business Perspective", a recent survey from Nationwide Financial.
COLUMBUS, Ohio — Despite consulting numerous financial professionals for business and personal planning advice, only a third of small business owners feel very certain they've appropriately planned for their business' future. This is a key finding of "Financial Advice Today: A Small Business Perspective", a recent survey from Nationwide Financial.
"Small business owners are turning to several financial professionals, but often have no one responsible for their overall financial plan," said Michael Butler, senior vice president of NFS Distributors Inc., a division of Nationwide Financial. "Financial advisors who are willing to take a leadership role to help fill the education gaps and build a truly comprehensive plan for small business owners can attract and retain valuable business for the long- term."
The survey indicated that certified public accountants, personal bankers and attorneys are most often used by small business owners for business and personal advice, but seldom relied upon for financial products. Financial planners are consulted primarily for personal financial planning, and purchasing products such as annuities, stocks and mutual funds. Stockbrokers and insurance agents are considered a top-of-mind resource for certain financial products, such as stocks or life insurance, respectively.
Small business owners use all of these sources, in addition to professional Web sites and associations, in planning for their business future. Yet, the majority (63 percent) of owners are only somewhat or not-at-all certain they've planned appropriately.
Business is not the only area of uncertainty for small business owners. When it comes to their personal financial plans, only 45 percent currently have a personal financial comprehensive plan, and only two-thirds used an investment professional to prepare it (typically a financial planner).
"Advisors can strengthen their relationship with business owners by approaching them with a genuine understanding of both their business and personal needs, and the means to prepare and protect them and their business — regardless what the future holds," Butler said.
Other interesting findings regarding small business owners and their financial advisors:
Expertise, experience and knowledge were rated most important qualities in a financial professional. Characteristics like honesty, integrity and trustworthiness also rated very high. Familiarity and cost were not considered important at all.
Almost half (45 percent) of all small business owners use the same professional for business and personal issues all or most of the time.
Another 26 percent report using the same professional for both business and personal issues some of the time.
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