In a volatile economy outside help can be the difference between success and struggle. A new study finds that 83% of small business owners think it is important to work with a financial professional for business guidance and decision-making.
The report: The Advantage of Advice: How Small Business Owners Navigate Growth, Retirement and Workplace Strategies, put out by Equitable and SCORE, also says that 6 out of 10 small business owners find it difficult to fully retire. As a result, 63% are looking for retirement plan advice.
“Behind every successful small business is a network of trusted support. This study with Equitable confirms what we see every day at SCORE: financial professionals and mentors help business owners make smarter decisions, manage risk and build lasting success,” said Ed Coleman, Regional Vice President at SCORE. “Entrepreneurs often feel the weight of every decision — but they don’t have to carry it alone. Whether just starting out, growing a business or planning for retirement, access to the right guidance can make the difference between surviving and thriving.”
Millennial small business owners are twice as likely to seek financial professionals compared to their Gen X and baby boomer counterparts. Further, small businesses in the early growth phase — operating between two and five years — are 50% more likely to engage strategic advisors than businesses operating for more than 20 years. Yet, well-established business owners can still benefit from working with a financial professional, especially as they align personal retirement goals with business transition plans.
“Running a successful small business is challenging, and our research shows that owners feel more confident when they have an experienced financial professional by their side,” said Jim Mellin, Head of Advice and Wealth Management for Equitable Advisors. “Those who value advice are more resilient, grow their business faster, retire earlier and build stronger teams compared to small business owners without that support. The advisor relationship is not just helpful — it’s often the catalyst for sustained success.”
Also, small business owners who work with a financial professional indicated they are three times more likely to hire new workers and five times more likely to fast-track employee retention strategies compared to those without one. As well, small business owners who work with a financial professional are twice as likely to offer comprehensive benefits — including retirement plans and supplemental health options like hospital indemnity, critical illness and accident insurance — helping them to better compete against larger employers in today’s competitive job market.
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