A good idea, a solid strategy, an understanding of clients genetic makeup could be a ticket to their success. But without this insight – failure is more likely both for you as an advisor and for the client who wants to be an entrepreneur.
DNA Behavior International’s extensive research from recent academic research and studies supports the findings that a person is born with entrepreneurial genes. Providing advice to a client like this could be tricky.
A key for financial advisors is to understand the genetic makeup of an entrepreneur. What makes them tick. All entrepreneurs have similar characteristics. Their minds are genetically wired in the same way. In other words, they tend to depart from established patterns of thinking. Their resilience and appetite for risk are inherent qualities. The more mindful financial advisors are in their understanding of the entrepreneurial mind, the greater the chances of success in delivering sound targeted advice.
The Business DNA research concludes that entrepreneurs have the following genes in descending order of dominance:
- Resilience (Measured by the Fast-Paced trait) – they achieve results, manage setbacks and rationally take quick action.
- Risk Taker (Measured by the Risk trait) – confidently take risks and tolerant of losses.
- Creativity (Measured by the Creative trait) – innovative with ideas and seeks to differentiate.
- Work Ethic and Focus (Measured by the Pioneering trait) – pursues goals and is often ambitious and competitive.
- Charisma (Measured by the Outgoing trait) – outgoing, connects with a lot of people and influences people to follow them.
Entrepreneurs are confident, passionate and determined to succeed. They are comfortable taking the risk and will invest heavily in their business venture, maybe to the detriment of other areas of their life.
However, being genetically predisposed towards entrepreneurialism doesn’t guarantee that an individual will become an entrepreneur and then whether they will succeed. It is not just enough to be born with the entrepreneurial gene, people must do something with it. Financial advisors need to be able to dig below the surface to understand the dynamics of the entrepreneurial client and then can target advice.
Behaviorally smart financial advisors should be:
- Comfortable being a user to test the financial validity of an opportunity.
- Confident enough to challenge ideas and ask questions.
- Trustworthy enough to encourage yet confront when the entrepreneur’s ideas are spinning out of control.
When financial advisors understand that Entrepreneurs are driven by the need to succeed and control their own destiny, they are less likely to put them in a client box. They won’t deliver mundane advice but will recognize the importance of getting inside the mind and genetics of an entrepreneur.