With the average owner having over 70% of their net worth tied to the business, it’s no wonder that more financial professionals are looking to work with business owners. They represent a unique opportunity for advisors of all specialties.

Take into consideration, for example, the impact of the pandemic on succession and exit planning. The timeline of retirement has accelerated (60% of smbs are owned by baby boomers), as more owners are looking to retire earlier and seeking to change ownership to a business partner, family member, or potential buyer. 

Factor in that $13.2 Trillion in business owner assets are set to transfer over the next decade, and it becomes clear that the time to connect with business owners who are planning their exit is now.

But what about business owners who are just starting their business, or those who have acquired businesses from their parents, are in the middle of divorce proceedings, or are looking to add a new location?

Long before business owners are ready to exit, there are plenty of instances when performing a business valuation provides a critical temperature check for  the health of the business.

Most of a business owner’s focus and energy is consumed by running the business—managing day-to-day operations, finding solutions to challenges, ensuring the happiness of their customers and business partners, establishing the security of their employees and families, and keeping the business afloat.

To oversimplify, they aren’t looking at their business’s health in a holistic, future-focused way. Because business owners rarely think past the next day, the next order or the next shipment, they need someone to help guide their long-term strategy.

That’s where you can offer your business owner clients a real-time solution that supports their goals, allowing you to work together towards building their future and provide your clients with peace of mind.

Making the connection between the financial health of the business and how it impacts their family, employees, and business partners is crucial when beginning conversations around any kind of longer term planning. Knowing the business value is about benchmarking where they are today to help them achieve their bigger picture goals. 

The value of their business doesn’t just impact their future, but that of all parties involved.

As we all know, the needs of an owner and the business change depending on where in the lifecycle of their business (and life) they are. 

Business valuation is a catch-all for helping clients achieve their goals. How can any decisions be made without knowing the value of a business? 

Whether they are in the preliminary stages of starting their business, looking to expand, want to invest or apply for financial assistance, or are underinsured (75% of businesses are underinsured by at least 40%), the business is likely their largest asset, and knowing its value is the key for attaining their long-term goals.

You are still and always will be the expert here. Giving you the tools to connect the dots? That’s our job. Learn more about how BizEquity helps advisors serve business owners more effectively with on-demand valuation software.