There are 32.5 million small businesses in America, yet financial advisors often ignore most of the wealth they generate.

Small business has long been said to be the backbone of the U.S. economy for its ability to create new jobs and spur job expansion. In fact, small business creates two-thirds of new jobs and employs 46.8% of the private workforce, according to 2021 Small Business Administration data. The COVID-19 pandemic hit small businesses hard, especially minority-owned businesses. However, many have rebounded and continue to grow.

Financial advisors often market to a niche of potential clients, and business owners are regularly cited as an optimal market. However, when advisors talk with a prospective client about their current investments, rarely do they discuss one of the largest allocations in the client’s portfolio – their ownership interest in the business itself. In doing so, they miss out on valuable advisory opportunities.