Taxes, Regulation, and the Costs of Complying With ACA… for starters
CHICAGO, IL–(Marketwired – February 17, 2016) – A new Spectrem Group study, Serving Business Owners, reveals that nearly three-quarters of small and mid-sized Business Owners (74 percent) cite taxes as their greatest concern, followed closely by government gridlock and regulations.
In addition, Business Owners report The Affordable Care Act has cut into the profitability of their business, with larger firms citing the greatest negative impact from the ACA.
The study is based on research of 294 owners of small-and-mid-sized companies across multiple industries. The companies’ valuations range between less than $1 million to $25 million or more, with more than half (52 percent) reporting a value exceeding $10 million; companies represented in the study employ between 25 and 500 people.
The report focuses on how effectively financial services organizations are meeting the needs of Business Owners. With almost 28 million small and mid-sized businesses in the United States and more than 18,000 large businesses, the market for beneficial financial advice and knowledge is significant.
Segmented by business value, number of employees, as well as the age and gender of the Business Owner, the study provides a perspective on how Business Owners operate, and how their operations affect their relationship with a financial advisor.
Other study findings include:
- One quarter of Business Owners have a net worth of between $5 million and $25 million, with 55 percent reporting a net worth of between $1 and $5 million.
- Nearly half (48 percent) of Business Owners plan to retire within the next decade, underscoring a growing need for advice on retirement and succession planning.
- The highest percentage of Business Owners are in the professional services field, including law firms and doctor’s practices. That is particularly true of female Business Owners, of which 44 percent work in professional services.
- While more than half (55 percent) of Business Owners use the same advisor for professional and personal matters, another 26 percent would like to do so but feel their advisors cannot provide the services needed for both needs.
“In today’s complex environment, Business Owners have a growing need for business/professional advisory services,” said Spectrem Group President George H. Walper Jr. “Many times, however, Business Owners are unaware of the breadth of services their provider can offer. Those advisors and providers that will win must effectively market the broad panoply of services they provide, as well as align themselves with other partner organizations that can serve the ancillary health care needs of their clients.”
Additional insights about the attitudes and concerns of wealthy investors are available at Spectrem.com and Spectrem’s Millionaire Corner.