The role of a financial advisor extends far beyond managing investments. For business owners, the most valuable asset they own is often their business. Yet, many fail to recognize its true worth or take the necessary steps to enhance its value. This is where best-in-class advisors step in—not just to manage wealth but to help business owners create a "significant" company, one that is transferable and leaves a lasting legacy.
A successful business is an entity that generates good revenue and profit, while a significant business is built to last beyond its current ownership. It is transferable, has systems in place, and is not solely dependent on the owner's direct involvement. Significant businesses command higher multiples, are more attractive to buyers, and provide their owners with optionality and financial security post-exit.
As a financial advisor, your ability to help business owners transition from a successful business to a significant one adds immense value—not just for them but for their families, employees, and the broader economy. A significant company creates additional wealth and a ripple effect.
Most business owners are deeply involved in day-to-day operations but may not be thinking strategically about long-term value creation. Here are some of the biggest blind spots they encounter:
To help business owners create a legacy, financial advisors must integrate business value acceleration into their advisory process. This requires a shift from traditional wealth management to a more holistic approach that includes business valuation, exit planning, and strategic partnerships.
The first step in helping business owners is ensuring they understand the value of their business. Without this, making informed decisions about retirement planning, succession, or growth strategies is impossible. Advisors should:
Once business value is established, the next step is identifying ways to increase it. This is where collaboration with a Value Advisor becomes essential. Together, advisors can help business owners:
Most business owners do not have a clear picture of their Wealth Gap—the difference between their current assets (including the business) and the financial resources needed to support their post-exit lifestyle. Financial advisors can:
A truly significant business requires an ecosystem of support. Financial advisors can serve as the quarterback, ensuring that business owners work with tax strategists, estate planners, and legal professionals to optimize their financial future. This collaborative approach helps:
At Cultivate Advisors, we help financial professionals integrate business value acceleration into their practice through a structured, proven process:
By embedding business value acceleration into your advisory services, you differentiate yourself from traditional financial planners. You become an essential partner in your client’s business and personal wealth journey, ensuring that they not only grow their business but also create a lasting legacy.
The best financial advisors don’t just manage wealth—they help create it. By guiding business owners in building significant businesses, you position yourself as an indispensable advisor and a magnet for business owners.
*Exit Planning Institute believes exit planning is for all advisors, not just FAs.