“One approach were looking at is how an advisor can understand and apply a business life cycle approach,” says Brad Sorensen, associate vice president and small business market manager for Nationwide Financial Services, Columbus, Ohio.
Sorensen says agents who have a strong understanding of the business life cycle are better suited to meet the needs of their prospects, helping them plan as the business moves through each stage of the business cycle. Agents need to understand that “businesses are at different maturity stages,” he says
This may be one reason why small business owners are more apt to switch advisors, with only 30% of small business owners surveyed having kept the same advisor, according to a 2002 survey of high-income professionals sponsored by Nationwide Financial.
As a small business moves through the stages of the business life cycle, issues may become more complex and may require additional planning not previously needed.