My Business Owner Client

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GregA259's picture
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Joined: 2009-03-23

I just want to thank everyone in advance for any help/advice they give me.  This is my first post here.....I finally decided to post this as this has been something I have been trying to figure out for a while.I graduated college in May of 08...got a job at this firm I am at now. We are a small independent B/D. Make a long stroy short, I have this client who I in-herited from a rep who retireed. I started working with him just over a year ago. Over the past year I have been building the relationship and he has been pleased with the changes I have made to his portfolio. All of his investments outside of his 401(k) are with me ($1 million +). I have also done some insurance work for him. He is the CEO the company he works at..........The company has a $25 million + 401(k) with Vangaurd. My Question is this.....Any ideas on how to bring this up tactfully with him? how do I approach it? My goal is to get this business, I am just having a hard time figuring out how to appraoch it. I dont want to come off as greedy or desparate for the business. Thanks again for any comments/advice. I look forward to your responses

BizBanda's picture
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Joined: 2011-03-08

I would be glad to share with you what I have been doing in order to gain the business owner's trust and at the same time do some discovery as to all the opportunities that might be available within the account.It all starts with a report I provide the business owner...a report that shows a calculation of the value of the business and the value of all non-business assets, all in one place.  Plus it has some other functionality such as deal structure scenarios and tax ramifications of a sale, or walk away numbers.  It's pretty detailed and something I came up with as part of the M&A side of my practice.  I have found that business owners over the age of 55 really like to have this kind of information.  I usually charge $850 to $1000 to do this work for the business owner.  But sometimes I give it away for free.

BigFirepower's picture
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Joined: 2010-07-09

You're smart to ask. I know, that no matter what, I EVENTUALLY will get the money. I never put undue pressure, because whether it is this year, or 10 yrs from now, I'll have it. I just drip, add value, get more information...Jumping the gun, can sabotage the deal. Your instincts are helping you.    

alexus's picture
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Joined: 2011-03-24

I would be glad to share with you what I have been doing in order to gain the business owner's trust and at the same time do some discovery as to all the opportunities that might be available within the account.

UhOhWhatNow's picture
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Joined: 2010-07-10

Al...  I would love to hear that!

livnacitlec's picture
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Joined: 2011-01-13

It's an interesting conundrum to be in.  Having the CEO but wanting the company plan.Some will tell you that a $1 million + client would question how you can give him the attention he needs personally when you're elbow deep trying to satisfy all of his underlings.Then again, he'll be a member of that plan...reviewing his statements and pointing out "areas for change" or "missed opportunities" could be stepping stones.Just my thoughts.lc

denny123's picture
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Joined: 2011-05-03

IF you can find someone talented enough write it up, and a quality attorney you may first stand a better chance to write a NQ Deferred Comp plan if there are important key people in the company plus their is no initial competition for that one. You do well on that front and you'll get your shot at the 401k. Don't bring in anybody, but the best for the NQDC though or you'll shoot yourself in the foot.Just an option. 

Annonomous's picture
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Joined: 2010-12-29

See if his companies plan is rated on brightscope.com (the morningstar for 401k's). If it is not rated, encourage him to gather the data required to get his plan scored. This will allow him to evaluate his plan against others in a similar peer group. If the data shows his plan is high in cost, low in participation, and the investment menu sucks, he has a compelling reason to look at alternatives with you. The best part, is that Brightscope is an independent  3rd party, the comparison will be non-biased. A

gabrielgomez11's picture
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Joined: 2013-07-31

denny123 wrote:
IF you can find someone talented enough write it up, and a quality attorney you may first stand a better chance to write a NQ Deferred Comp plan if there are important key people in the company plus their is no initial competition for that one. You do well on that front and you'll get your shot at the 401k. Don't bring in anybody, but the best for the NQDC though or you'll shoot yourself in the foot.Just an option. 
Denny123 said right things.

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