Northern Trust’s Business Owner Benchmark Report
Northern Trust has recently published its third Business Owner Benchmark report, showcasing the ambitious plans that business owners have for the future. The insights are drawn from a survey conducted among Northern Trust’s business owner clients, revealing a willingness to embrace significant changes despite varied feelings about the current economic landscape.
Mixed Feelings About the Economy
The survey provides a snapshot of business owners' attitudes as they look toward the future, especially the forthcoming year. Many expressed a cautious outlook, with only 8% showing optimism for what lies ahead. Key concerns contributing to this mentality include the political climate, perceived risks related to tax legislation, and the ongoing impact of global conflicts.
Major Changes on the Horizon
When discussing growth strategies, it's interesting to note the generational divide in business perspectives. For instance, younger respondents, particularly those under 65, are predominantly focused on expansion, whether through venturing into new business lines or seeking acquisitions. Conversely, older business owners, those over 65, demonstrate a tendency towards divesting, with a notable 33% considering selling parts or all of their business.
Business Owners and Family Dynamics
According to Eric Czepyha, Northern Trust’s Director of Business Services, family dynamics play a crucial role in determining the future of business ventures. He emphasizes that while external factors like the economy and market trends are significant, the internal influences of family and management relationships are equally important.
Preparing the Next Generation
In conversations about the next generation, many business owners aim to instill values such as gratitude and integrity in their children. However, the survey results indicate a concerning trend: 64% of respondents lack confidence in their offspring's ability to manage the wealth and businesses they will inherit. Furthermore, a quarter of the participants have yet to articulate the purpose behind their accumulated wealth to their children.
Exploring Ownership Structures
Understanding trends in ownership is vital. The report highlights that while a strong desire to maintain family ownership exists among business owners, there is also curiosity regarding alternative ownership methods. Many respondents are unaware of strategies like transferring ownership to a perpetual purpose trust, which can help in preserving a company's legacy.
About the Business Owner Benchmark Survey
This insightful report is based on an online survey completed by 123 business owners of various company sizes, with an average age of 67. The responses reveal the diverse perspectives among business owners on wealth management and their trajectories as they navigate a changing environment.
Northern Trust Wealth Management
Northern Trust is recognized for its comprehensive wealth management services tailored for affluent individuals, families, foundations, and businesses. As of recent data, they manage assets totaling over $440 billion. Their commitment to service excellence and innovative technology positions them as leaders in the wealth management industry.
About Northern Trust Corporation
Northern Trust Corporation (NASDAQ: NTRS) has been a cornerstone in wealth management, asset servicing, and banking since its founding in Chicago in 1889. With over 135 years of service, they maintain a presence across the globe, managing significant assets for both institutional and individual clients. They emphasize integrity and financial expertise, reinforcing their standing as an industry leader.
Frequently Asked Questions
What is the purpose of the Business Owner Benchmark report?
The report aims to provide insights into the attitudes and plans of business owners for the upcoming year, based on survey responses.
How many business owners participated in the survey?
A total of 123 business owners participated, reflecting a mix of ages and company sizes.
What were the main concerns expressed by business owners?
Key concerns included the political climate, potential tax changes, and the effects of global conflicts on their businesses.
Are younger business owners more optimistic than older ones?
Yes, younger business owners are more inclined toward growth and expansion, while older respondents tend to focus more on selling or transitioning their businesses.
How does Northern Trust support wealthy individuals and families?
Northern Trust offers comprehensive wealth management services, focusing on investment strategies, estate planning, and financial advising tailored to affluent clients.
