The Challenges faced by Business Owners & How I helped them as a Financial Consultant

I have met many business owners in my journey as a financial consultant. While the typical image of a business Towkay (dialect for boss) may be someone who leads a high life of good food, nice car and free from worries, the truth is far from that.

It’s not easy running a business. Most people know that, which is why only less than 9.6%1 of the population in Singapore run companies or own businesses. Furthermore, with the current Covid situation, we are looking at an average of 4,153 businesses shutting down every month since start of this year; times are tough.

Many peers would ask me – “Ian, why do you choose to work with business owners? Business insurances are often complex, and owners are often demanding and price sensitive. Is it worth the time and effort?

My response to that will be a resounding - Yes

Despite the research, the administrative work as well as coping with the ever-changing demands of businesses, I personally find it really fulfilling, to get a chance to impact directly and indirectly, the entire organization. Most of my business insurance clients are small to medium size enterprises (SMEs), ranging from 5 – 200 employees, and the business owners often have these 3 main concerns:

1. How can I ensure that my business risks are hedged, without breaking the bank?

2. How can I provide better benefits for my employees and take care of their well-being?

3. How can I retain my best people and increase productivity across the organization?

While the first is directly related to the solutions I can offer to my clients, the second and third are human resource matters and are not typically solved by financial consultants. I am blessed to be working alongside teammates who believes that we can and should do more for our clients, beyond just financial advisory. That is why together with my team, we managed to help our business clients and their employees to save more, live more & learn more through our company services suite.

Here are some of the ways we help them:

1. Business Insurance Optimization – Save More

Being in a financial advisory firm means that I can provide options for my clients. With over 30 General Insurance partners, I am almost always able to provide more competitive benefits at a reasonable premium rate. Insurance is a necessity to businesses, especially SMEs, because it can save them from potential major losses or even bankruptcy, in times of trigger events such as unfortunate business interruptions, liability claims, or loss of key personnel in the company.

But as companies purse strings over the years due to stiffer competition, rising rental & overhead costs, increasing employee wages, insurance planning is often overlooked and are treated as an unwanted cost. I realized that this is a great opportunity for me to come in to review their existing portfolio and offer them something that is of greater value while paying the same or at a cheaper rate. Since insurance is a necessity, why not pay less and save more dollars here so that they can be redirected somewhere else?

2. Employee Engagement – Live More

Any good boss would agree that employees form the backbone of the company. While many companies speak of a “People First” philosophy as part of their culture, only a handful can put it into action and execute it consistently. And I find it understandably so, because efficiency and results are being prioritized in our fast-paced world today. But it doesn’t mean that people should be treated as a cog in the corporate wheel. We believe that while employees contribute to the company and forward the company mission in return for a salary, the workplace can also contribute to their employees beyond that; companies can play a part in their employees’ personal and professional development.

Other than making sure my clients’ employee benefits are comprehensive, we also offer them monthly newsletters and webinars that supports employees in the different areas of their life. Some examples include parenting workshop, career advancement workshops, vision-boarding exercises, etc. These engagements helped to create more fulfillment and work-life integration, as well as a more connected work environment for everyone.

3. Increase retention rate & productivity – Learn More

Workplace survey results always points back to employee engagement as the key in their retention rate and productivity. While cost cutting can be a short-term survival strategy, it may have more detrimental long-term effect on the bottom line if not done well. Employee engagement may be a better proxy for productivity2.

It takes commitment and work, and importantly equipping managers and leaders with the right tools and skills to do so. There is truth in the saying that people don’t leave companies, they leave managers. Rather than leave it to chance and hope managers have the skills to become better leaders for their team, that is where our Learn More programs comes in.

Where applicable, we will bring in our panel of industry experts to work with our client companies. We have a network of Gallup-certified Strength Coaches, facilitators of “The Five Behaviors of a Team”, management consultants and executive coaches who are trained to assist business owners and leaders to take their company to the next level.

All in all, even though working with business clients can be a lot of work, it has been a really satisfying journey for me. I am happy to have their trust as they would refer me to their vendors, work partners, and even do their personal financial planning with me. Knowing that I can add value to them in ways beyond financial advisory and seeing the positive outcome of our efforts really spurred me to do better and I am thankful for the opportunity to be of service to them.

Sources: 1.https://www.acra.gov.sg/training-and-resources/facts-and-figures/business-registry-statistics 2.https://www.gallup.com/workplace/321743/increase-productivity-lowest-possible-cost.aspx

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Ian Lee is an authorized Financial Consultant representing finexis advisory Pte Ltd.

This article contains only his personal views and opinions and is for informational purposes only. The information provided is of a general nature only and does not take into account your specific objectives, needs and financial situation. The information may not be appropriate to your individual needs and should not be relied upon as financial advice. You should seek advice from your financial consultant before making any financial decisions.