In more than 20 years of experience in the advisory business, working with owners of closely held corporations has proven to be a great way to grow my business. I have found over time that working with business owners has multiple benefits.
We target companies that range from around 25 to 400 employees. We reach out to these companies in a number of ways: cold-calling, referrals from centers of influence, and current client referrals. One of our largest clients came through an old-fashioned cold call.
After the initial contact, we see if we can build a relationship that can lead to handling their company’s 401(k) needs. We have strong relationships with third-party administrators (TPAs), insurance companies, and asset managers. That important relationship with a TPA needs to be a two-way street. If you expect them to work with you and refer business to you, you need to do the same. They want to work with advisors who specialize in qualified plans and will deliver a value-added service, making the client’s life and job easier.
Once a company’s 401(k) needs are being met, we try to expand that relationship with the business principal by handling their personal wealth-management needs, which can be closely intertwined with their business. This establishes a holistic financial plan that may address insurance needs, tax-reduction strategies, estate planning, and asset management.
You need to do what you say you will do with respect to servicing the qualified plan for the company. You will be directly in front of the decision-maker in these companies as you acquire and service the plan, which provides a wonderful opportunity to build a trusting relationship. Once they have seen how you can help them in their business and personal planning, don’t hesitate to ask for referrals.
Disclosure: Securities and investment advisory services offered through H. Beck, Inc., member FINRA/SIPC and an SEC-registered investment advisor. H. Beck, Inc., and Namey Financial Group, Inc., are not affiliated. Investments will fluctuate and when redeemed may be worth more or less than when originally invested.
Post-publication note: Mr. Namey has been registered with LPL Financial LLC since 2019.
Photography by Ryan Ketterman
