It Pays to Own

It’s true, ownerhsip comes with reponsiblity. Think about houses. As a homeowner, all of sudden there’s a lot more to worry about than decorating. Insurance, lawn care and liability are just a few of the less glamorous things that come to mind. But when it comes to building a fortune, well, it pays to own. In fact, ownership is more consistently linked to significant money than any other source of wealth.

In a survey of people with an average net worth of $89 million and an average annual income of $9 million, 76% of them attributed their wealth to owning (or having previously owned) all or part of a business. By contrast, just 16% amassed their fortunes by working for a company, about 6% characterized their money as celebrity wealth and just 3% inherited it. There are, of course, a few other ways to get rich—say, the lottery or an illicit enterprise—but none that are as reliable as having equity in something that can be monetized.

Your Takeaway:

If you’re serious about moving your practice upmarket, then business owners should be prioritized over corporate executives, physicians and other potential clients with liquid assets. Take the time to become conversant in their most pressing issues — typically things like business continuity, succession planning, deferred compensation and retirement planning for highly-compensated individuals and access to lines of credit — and make sure you’ve got access to the products, services and specialists that can be part of the solutions.

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