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For Producer Use Only. Not for Distribution to the General Public.The Guardian Life Insurance Company of America (Guardian), New York, NY

background

Plays to Optimize Your Reach

5

PlaybookSmall Business

®


1

Marketing and Sales Used to be Easy

• Customer clearly defined• Easy to approach • Simple issues• Less competition• Less complicated solutions• Customer for life

then


2

Limitless Choices

now

• Customers abound• Harder to reach • More sophisticated issues• Increased competition• More sophisticated solutions• Customer has multiple advisors


3

How Do You Differentiate Yourself?


4

By Knowing “Thy” Customerbetter than your competitor


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background

Guardian’s Small Business Owner Attitudinal Survey

• Most business owners are in the prime age for buying many financial products

• Many possess significant financial assets to acquire these products

• Most have a family so they have a number of financial and protection issues that have to be addressed

– Personal and business finances of small business owners are intertwined


background

Opportunities

Long Term Investments

Disability

Mutual Funds

Life Insurance

Short Term Investments

Group

Long Term Care

Annuities

Qualified Plans

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background

Guardian’s Attitudinal Study set out to survey business owners regarding their philosophy and feelings associated with owning a business. The Study provides greater insight into the needs of business owners and reveals “real” business opportunities.

The results identified common characteristics among business owners and segments them into five groups.


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five business segments

27%OF

MARKET

23%OF

MARKET

10%OF

MARKET

19%OF

MARKET

21%OF

MARKET

Unexpected Business Owner

Open to Suggestions

Living the Dream Chasing the Dream

OK for Now


9


What They Think About Owning a Business

“I never really expected to own my own business,

and I do not particularly enjoy being my own boss. Once I can build up my business

and sell it, I’ll move on.”



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“I am financially secure. I am also satisfied with the current size of my business, and feel as a business owner I have nothing to prove. I am proud of what I have

accomplished in life and in business. I really do not need much more help managing my business or personal finances.”


Living the Dream


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“I am afraid that I am not saving enough — particularly for retirement. My business is my life, and I can no longer

see myself working for someone else. I am not satisfied with the current size of my business, and I am totally focused on working as hard as I can to build up my business, my legacy and my own personal wealth.”


Chasing the Dream


12


“While I am not particularly satisfied with my own financial situation or the size of my business, I wouldn’t mind taking a little less money so I could have more free time. And I could probably use a bit more help getting my personal and business financial situation in better shape.”


Open to Suggestions


13


“I don’t really feel that my business is my ‘life’ or my ‘passion.’ My personal

and business financial situation is generally in good shape – and I feel like I have what I need in life.”


OK for Now


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What They Want

Unexpected Business Owner Wants to sell the business=

Living the Dream = Wants to pay less in taxes

Chasing the Dream = Wants to pay less in taxes and have more time

Open to Suggestions = Wants help managing personal and business finances

OK for Now = Wants to continue to spend time with family


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identify them

How to Identify Them—Personality Descriptors

• Faster is Better

• Reluctant

• Introvert

• Young and not very affluent.

• Most likely in the “Retail” industry.

• Appears to be eco-conscious. Drives passenger car and enjoys sailing. Pragmatic… well-educated. Practical nature… buys for the trust and dependability.

Prospect Personality Your Best Response:

• Educate quickly

• Focus on objectives

• Don’t waste time on small talk

• To get to decision—Provide Options



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identify them

• Optimistic

• Innovator

• Inventor

• Most likely in the “Manufactur-ing/Business Services” industry.

• Drives an American-made car and doesn’t own “toys”. Believes they have something unique to offer and wants to maintain/build their professional reputation and wants to make a lot of money. Highly educated and has an undergraduate degree.


• Focus on objectives

• Be accurate

• To get to decision— Provide Options

Living the Dream


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identify them

• Impatient

• Impulsive

• Micro Manager

• Probably in the “Construction/Financial Ser-vices” industry.

• Drives a family-oriented car and tends to be a little behind the times. Little use of the web. Appears to be very driven and most of their money is in real estate. Not very affluent.


• Focus on priorities, principles and thinking

• To get to decisions—Provide Evidence (“show me the way”)

• Be accurate

Chasing the Dream


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identify them

• Optimistic

• Innovator

• Inventor

• Most likely in the “Manufactur-ing/Business Services” industry.

• Drives an American-made car and doesn’t own “toys”. Believes they have something unique to offer and wants to maintain/build their professional reputation and wants to make a lot of money. Highly educated and has an undergraduate degree.


• Focus on dreams

• Take time to listen

• To get to decision – Provide Rationale and Encouragement

Open to Suggestions


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identify them

• Relaxed

• Patient

• Risk Adverse

• Probably in the “Distributor/Retail/Business Services” industry.

• Drives a conservative vehicle and doesn’t own “toys”. Doesn’t use the web and may or may not have gone to college. Wants to live life on their schedule. Likely to be female and affluent.


• Focus on relationships

• Be personal

• To get to decision— Provide Assurances

OK for Now


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Plays5

Choose Your Referral Source

1 2 3 4 5CPA Financial

PlannerAttorney Insurance

AgentOther

Business Owners


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Plays5

How YOU Can Help

• Business Planning

- Keep/Sell

- Business Valuations

• Mortgages

• Loans

• Retirement Planning

• Key Person

• Income Protection

Foundational: Conversation Starters:

• What happens with your business when you’re not involved?

• When and how do you plan to make the com-pany less dependent on your leadership?

• What is your business worth and what provisions have you made for turning business value into liquid cash?

• How would your company cope with the loss of a key person’s knowledge, skills or relationships?

• How do you maintain and monitor your assets?

• What provisions have you made to protect your income?



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Plays5

• Business Planning

- Keep/Sell

- Business Valuations

• Mortgages

• Loans


• Key Person

• Disability

• Business Overhead Expense

• Long Term Care

• Investments

Foundational: Conversation Starters:• How do you plan to make the company less

dependent on your leadership?

• What is your business worth and what provisions have you made for turning business value into liquid cash?

• Without you, what would your spouse or heirs need to do to maintain or sell the business and meet financial obligations?

• What incentives do owners and key executives have to stay committed to your company?



Living the Dream


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Plays5

• Estate Planning


• Business Overhead Expense

• Disability

• The Living Balance Sheet®

Foundational: Conversation Starters:• How do you keep track of all of your expenses?


• How much financial liquidity and security have you built personally, outside the business?

• How often does your CPA communicate with you and your other financial advisors?

• How is your company performing in attracting and retaining capable employees?


Chasing the Dream

The Living Balance Sheet® and the Living Balance Sheet® Logo are registered service marks of The Guardian Life Insurance Company of America (Guardian), New York, NY. The graphics and text used herein are the exclusive property of Guardian and protected under U.S. and International copyright laws.

© Copyright 2005-2010, The Guardian Life Insurance Company of America


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Plays5

• Estate Planning





• How do you keep track of all of your expenses?





Open to Suggestions


25

Plays5

OK for Now

• Estate Planning





• How do you keep track of all of your expenses?






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BIG opportunities

Biggest Opportunity


Chasing the Dream

Open to Suggestions


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BIG opportunities

Biggest Opportunity & Key Findings

The most receptive target and represents greatest opportunity.

• Most interested in obtaining additional help with their business and personal financial needs/challenges.

• Most open to working with the same person for both business and personal financial needs.

• Excellent opportunity for a variety of product categories and estate planning.

Education is key for this group.

• They are young and are among the segments with the greatest interest in acquiring life, disability and long-term care policies.


Open to Suggestions


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BIG opportunities

Biggest Opportunity & Key Findings

Impatient, highly driven group that will require a “show me the money” approach.

• They are all about work and family—and are likely to be a growing new business.

• Their current product ownership suggests they may be the least savvy in terms of financial products, and reflect a “stick to the basics” approach.

• They are looking for help with retirement planning and building wealth.

• Nearly half are expecting to develop a formal financial plan in the next year—and they are also a good prospect for estate planning.

Chasing the Dream


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other thoughts

Common Business Challenges

Regardless of SBO Segment, these business owners:

Need help with: • Increasing Customer Base

• Increasing Profit Margin

• Recruiting/Retaining Employees

Experienced one of the following life stage events:• Caring for Elderly Parents

• Paying/Saving for Kids College

• Empty Nest (kids moving out)


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other thoughts

Common Mindset

Regardless of SBO Segment, these business owners:• Listen to Other Business Owners

• Want better information/professional advice on personal finances and retirement planning

Need help with:• Managing stress and improving

their own physical health

• Enjoy being their own boss

Are concerned about:• Economy

• Cash Flow/Revenue/Sales

• Employee Benefits


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other thoughts

Prospects – Professional Groups

In addition to the industries referenced earlier, the following professional groups are excellent prospects for business insurance:

Actuaries Engineers PhysicistsAdvertising Agencies Highway Safety Designers P&C FirmsArchitects Lawyers Real Estate DevelopersChemists Management Consultants Survey AgenciesChiropodists Pharmacists Technicians Dentists Physicians Therapists


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other thoughts

Conversation StartersQuestion SolutionHow is your company performing in attracting and retaining capable employees?

Qualified Retirement Planning / Non-Qualified Executive Benefits / Group

What incentives do owners and key executives have to stay committed to your company?

Non-Qualified Executive Benefits

Have you taken an extensive vacation during the past year or two? If no, why not?

Key Person Planning

How would your company cope with the loss of a key person’s knowledge, skills or relationships?

Key Person Planning

Is there anyone in your organization who is more capable than you (or as capable) in handling the day-to-day problems?

Key Person Planning

When and how do you plan to make the company less dependent on your leadership?

Succession Planning / Long Term Care / Disability

As a business owner, you know the importance of a strong cash position (or good liquidity). What effort would a disability or death have on your financial statements? If I could show you how to increase the company’s liquidity on a tax-free basis, would you like to hear more?

Life Insurance / Disability Insurance

If you had died yesterday, is there a provision in your will for disposing of the company? How much of a liability would the business create for your estate? Would your family need the money you have invested in your business? Would your business partner be able to pay them in cash as soon as your family needs it?

Business Continuation / Key Person / Estate Planning

If your business partner died yesterday, do you think the heirs would sell their interest to you at a price you consider fair? How would you go about setting a fair price?


continued


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other thoughts

Question SolutionWithout you, what would your spouse or heirs need to do to maintain or sell the business and meet financial obligations?


What is your business worth, and what provisions have you made for turning business value into liquid cash?

Buy-Sell Agreement / Estate Planning

How much financial liquidity and security have you built personally, outside the business?

Personal Savings / Investments / Cash Value Life Insurance

Where will the money come from to provide for your comfortable retirement?

Qualified Retirement Planning

What are you/your company doing to help minimize taxes? Qualified Retirement Plans / Deferred Compensation Plans

How will the business expenses be paid if you’re unable to actively work in the business?

Business Overhead Expense

How will you be paid if you’re unable to work in the business? How long will the business be able to continue to pay your salary while you’re disabled?

Sick-Pay Plans / Short-Term Disability / Long-Term Disability or Personally Owned Disability Insurance

When was the last time you did a complete audit of your business insurance? How often does your CPA communicate with you and your other financial advisors?

Coordination of Planning / Regular Client Reviews

continued from previous page


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opportunities at-a-glance

SBO Segments Opportunities SBO Segment

Top 3 Personality Traits

Top 3 Issues/Challenges

Top 3 Conversation Starters

Top 3 Strategies


• Faster is Better• Reluctant • Introvert

Making sure all business papers are in order and formalized

Ensuring key personnel is in place for business transition

Making sure there are enough funds to live on

How do you keep track of all your important documents?

How would your company cope with the loss of a key person?

What is your business worth and what provisions have you made for turning business value into liquid cash


• Business Continuity and Key Person


Living the Dream

• Optimistic • Patient• Innovator

Making sure business succession is docu-mented and funded

Ensuring key personnel is in place for business transition and encour-aged to stay with company

Making sure business owner has enough funds to live on and doesn’t cause estate tax issue

Do you have a business succession plan?

When and how do you plan to make the company less dependent on your leadership?

What incentives do key executives have to stay committed to your company?

Without you, what would your spouse or heirs need to do to maintain or sell the business and meet financial obligations?

• Business Continuity

• Key Person


continued


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SBO Segment




Top 3 Strategies

Chasing the Dream

• Impatient • Impulsive • Micro Manager

Staying focused because they are doing it all

Managing capital and cash flow

Has most of wealth tied up on illiquid assets (i.e. real estate)

How do you keep track of all of your expenses and assets?

How often does your CPA communicate with you and your other financial advisors?

What provisions have you taken to protect your income and secure your retirement?


• DI and LTC


Open to Suggestions

• Optimistic• Innovator• Inventor

Growing and managing the businesses finances

Inadequate business and personal coverage

Finding free time because most likely caring for elderly parents

How do you stay on top of your business finances?

How much financial liquidity and security have you built personally, outside the business?


• Estate and Retirement Planning

• DI and LTC

continued


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SBO Segment




Top 3 Strategies

OK for Now • Relaxed• Patient • Risk Adverse

Knowing business is protected in event owner is sick and can’t work

Keeping up with daily paperwork

Providing enough em-ployee benefits

How much of the company is dependent on your presence?

How do you maintain and monitor your assets?

How are you providing for your employee’s benefits?

• DI and LTC


• Group


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resources

Supporting Collateral Materials

Solutions Supporting Consumer Sales MaterialsAsset Protection Top 10 Ways to Protect Assets from Credits

(2009-11250)

Business Planning Business Continuation (pub. 4231) Business Continuation Guide (pub. 3666)

Disability DI ProVider Plus (pub. 4096)

Estate Planning Ownership of Life Insurance (pub. 4335)

Long Term Care LTC Choice ProVider Needs (pub. 4185) and LTC Choice ProVider Product (pub. 4186)

Non-Qualified Retirement Plans Key Person Insurance (pub. 4232) Non-Qualified Deferred Compensation (2008-6104)

Qualified Retirement Plans Planning Opportunities with ESOPs and Life Insurance (2008-9223)

Coordination of Planning / Regular Client Reviews CPA Marketing / The Living Balance Sheet® / Fact Finders

You may want to refer to your Living Balance Sheet® publications for more information on these topics.Living Balance Sheet® Clients Introduction Booklet 4006Living Balance Sheet® Business Clients Introduction Booklet 4006A

Additional marketing materials may be found on: GOL > The Center for Training > Advanced Planning & Sales tab.


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resources

Guardian Coordinated Resources

Guardian has developed a highly coordinated, integrated team to further support your efforts in the business marketplace:

• Berkshire

• Business Resource Center

• CPA Marketing

• Retirement Center of Excellence

• Agency Marketing and Living Balance Sheet®

Agency Resources

• Agency Training


®

small business background playbook - levinagency.com · playbook small business ... business, i...

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