The Role of the Planner in Start-ups: Angels, Advisors, Devil's Advocates

Grote, Jim
July 2002
Journal of Financial Planning;Jul2002, Vol. 15 Issue 7, p54
Academic Journal
This article discusses the role of financial planners in start-up businesses in the U.S. Over 600,000 new employer firms, that is, an owner with at least one employee, start up every year in the country. Of these businesses, 66 percent remain open at least two years, 50 percent at least four years and 40 percent at least six years. Daniel Hey, a self-employed planner in Elverson, Pennsylvania, works with executives who are leaving the corporate world and going out on their own. Most are establishing technology-related companies and have spent their lives in that part of the corporate world. His clients typically envision starting a company, working hard for five or six years, and then selling the company for a hefty sum. Dennis Kilangeri, an independent planner in San Diego, California, describes his clients as mom-and-pop shops, people starting from scratch in some kind of product sales or in high-tech, computer software-type businesses. Clients' ages run anywhere from their early thirties to their sixties. His younger clients tend to be individuals and older clients tend to be couples. A planner doing work in the health care field is Cindy Conger, president of Arkansas Financial Group in Little Rock, Arkansas. Conger's firm started in 1985 and in 2002 has five planners who specialize in advising professional service corporations.


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