2018 Insights on Wealth and Worth — Business Owners
Putting wealth into action

The 2018 U.S. Trust Insights on Wealth and Worth® survey examines the impact that people and relationships have on business ownership, from initial funding to exit planning. The survey finds that business owners could be doing more to manage and plan for family members, employees and others who rely on the business.
Family Dynamics

For many business owners, the link between family and business goes back to their company’s founding. In fact, the survey showed the majority of all business owners (65%) use personal and family money to fund the start-up and early growth of their business.
Family is also involved in the company in different capacities for two-thirds (66%) of business owners. Most of these family members are involved in either senior (38%) or middle (21%) management (see Figure 1).
Family involvement in the business creates mixed feelings for business owners: 71% agree it provides a competitive advantage, while 69% say that it also complicates decision making. Additionally, 7 in 10 say it’s difficult to manage family dynamics and to separate the needs of family from those of the business.
Family business owners also cite the readiness of the next
generation as a key challenge, both in terms of the next generation’s
interest in taking over the business and in how to best prepare for
leadership.
Impacting Employees
Growth and Expansion
Succession
Always consult with your independent attorney, tax advisor, investment manager and insurance agent for final recommendations and before changing or implementing any financial, tax or estate planning strategy.
Study Methodology
The 2018 U.S. Trust Survey of HNW Business Owners is conducted as part of the 2018 U.S. Trust Insights on Wealth and Worth® survey, a nationwide survey of 892 high-net-worth and ultra-high-net-worth adults with at least $3 million in investable assets, not including the value of their primary residence.
U.S. Trust surveyed 203 business owners, including 155 current owners and 48 retired owners. All respondents own or owned businesses with annual revenues of $1M to greater than $100M.
U.S. Trust commissioned the independent research firm Phoenix Marketing International to conduct the survey and compile findings. The double-blind survey was administered online over a six-week period, beginning in January and completed in February 2018. Quotas were established by age and investable asset size and specified for business owners in order to ensure sufficient representation of groups of interest. The final sample was weighted to the true representation of high-net-worth households by age, asset level and business ownership and is not representative of U.S. Trust clients. Asset information was self-reported by the respondent. Verification for respondent qualification occurred at the panel company, using algorithms in place to ensure consistency of information provided, and was confirmed with questions from the survey itself. All data have been tested for statistical significance at the 95% confidence level.