Women business owners face the same challenges that all business owners face. But how they handle those challenges, how they make decisions, and what they want from their financial partners can be different from their male counterparts.
For example, a recent American College survey found that small business owners prefer to work with financial advisors of the same sex.
Sixty-one percent of women small business owners prefer to speak to female financial advisors, compared to 24 percent of men. Seventy-five percent of men prefer to speak to male financial advisors, compared to 40 percent of women.
So for those 61% of women business owners who prefer to work with a female financial advisor, what can you do for them? Do you have women financial advisors in your company?
"The financial services industry needs to do a better job of recruiting, training and retaining women as financial advisors if it is going to successfully meet the demand of women small business owners," said Mary Quist-Newins, director of the State Farm Center for Women and Financial Services at The American College, which conducted the study.
There's a real opportunity here for financial companies to gain a competitive edge by having quality women financial advisors on their team.
If you'd like to learn more about how to recruit and retain women, I speak and offer training on that topic.
Here's more information on what the study found about women business owners and their financial needs:
- More women have consulted with a financial advisor about maximizing business owner benefits (44 percent women vs. 33 percent men).
- More women have consulted with an advisor about starting a retirement plan (41 percent women vs. 29 percent men).
- More women than men list not having enough money in retirement as one of their top three concerns.
- Women and men state that they take an active role in understanding needs in retirement planning (75 percent women vs. 85 percent men), however:
- Most small business owners have not consulted with an advisor about retirement planning (44 percent women vs. 33 percent men) but those who have report being satisfied with their advisor relationship (76 percent women vs. 85 percent men).
- Many have not estimated how much capital they will need to be able to retire (34 percent women vs. 26 percent men).
- Only a few have a formal, written financial plan for managing income and expenses in retirement (24 percent women vs. 34 percent men) or have a formal, written plan for transitioning their business at retirement (11 percent women vs. 28 percent men).
Another reason why it's worth your time to focus on women business owners and understand their buying process is the B2B buying process of many companies is very similar to a typical woman's buying process.
There's an especially big opportunity for banks who want to work with women business owners.
Why not reach out to this affluent group who actively wants your advice?