Penn Rise Advisors; a culmination of 15 years

A Candid Conversation with Karl Klingmann II, owner of Penn Rise Advisors

Interviewed by Rachel Cathell

Intro:

According to Karl Klingmann, II, navigating the future all starts with conversation. Karl is the owner of Penn Rise Advisors, an investment and insurance business in Western Chester County.

Karl, tell me your backstory, what made you say, “I want to open my own business?”

“Throughout my life I’ve always had an entrepreneurial spirit and admired people that had their own business. My first business was a small landscaping business I started with a friend during high school. Then, after college, I worked at a couple of firms gaining experience in the financial and insurance industry and learning its ins and outs. Once I had a firm foundation, I knew if I truly wanted to grow, I needed to go out on my own.”

Going out alone can be intimidating.

“Yes, it didn’t happen overnight. First, I worked for a local life insurance and investment company. I was given a desk and very little training or leads, but it was a start. I had a small stipend for the first 6 months and then it was commissions only. I was practically starving so I had to take a full-time job at Home Depot in order to pay my bills. Some of the people closest to me wanted me to change paths and quit but I just wasn’t ready.

That’s tough, what made you ready?

“I moved to a small family-owned investment and insurance firm in Downingtown, after knocking on their door and hounding them on the phone to hire me for several months. They conceded and told me they would teach me the business but not give me a paycheck. They gave me an opportunity but no pay. This experience helped drive me to learn more and find what it takes to succeed. Being new to Chester County, I didn’t know anyone, which makes it hard to build a book of business. I slowly began to build my network, made some friends and joined a soccer team that coincidentally had quite a few business owners on it. These guys got to know you and gave me a chance to earn their business. Some of these connections turned into my first clients and continue to be clients today. From there, I met more people, made a lot of phone calls, heard a lot of “no’s” but persisted. I learned early on that relationships are key in growing a service business.”

What made you think, hey I want to be in the world of financial planning and employee benefits?

“Originally, I thought I’d be an electrical engineer and I started down that path in college. But soon I discovered that really wasn’t for me and changed majors. majors; I earned an economics and business degree at Lafayette College. Personally, I like the analytical and problem-solving nature of finance and insurance but truly enjoy how I can apply my knowledge to help others.”

And that enjoyment of your job, comes from what?

“I’m known as the guy who likes to pick up the phone. I

All photos courtesy of Aleesha Nicole Photography get emails all day long and tend to call people back if I can see the response will be more than a simple answer. Speaking directly with people allows me to have a more personal connection and understand a person’s needs. From this I’ve been able to help clients with financial planning in multiple stages of their life, from newlyweds to

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their kid’s college funds and on to retirement. I really enjoy hearing small business owners say “Call Karl”, when they have financial or benefit questions. That’s the level of trust we have earned from our clients, being able to help out with crunching numbers for loans, calculating the cost and impact of a new employee benefit, reviewing how to best pay for a new car/roof/etc., connecting the owner to other service providers to help streamline their business. I tell people, “If there is a dollar sign in front of it, call Karl”. This level of knowledge and trust allows them to focus on the core of their business.

How did your business progress through the years?

“When I started, my office consisted of a laptop, printer and my grandfather’s old desk in the dining room of my small apartment in Downingtown. This was a very scary but pivotal point in my business. Once I went on my own, I really saw the benefits of my hard work. As time progressed, I moved twice, each time knowing I wanted a home with a separate space for my office. It was a great way to maximize earnings and operate with a great work life balance while providing an authentic and relaxed atmosphere to meet with my clients. Clients could also trust me as they could see how and where I lived. If they had a concern, they could drop in at my house. No hiding there.”

Your hard work seems to be still climbing upward. I heard you’ve just moved to a new location?

“I did, to Sadsburyville. This year we are celebrating our 15th year in business and being able to purchase this new building is icing on the cake. It’s something I’ve always wanted to do and decided this was an opportunity I couldn’t resist. I looked at a few spaces, received some great guidance from other business owners, but nothing panned out. Then one day, I passed the former Black Walnut Winery, a 210-year old converted barn and saw it was for sale. After joking about it with my wife because it was a former barn, way too big for us and what we thought was out of financial reach, we ended up looking at it the next week and put an offer in shortly thereafter.”

Financial planning can be daunting to people. What kind of misconceptions do you think some people may have?

“That can be the case. There are two misconceptions that I think I see the most. The first is the idea that you need to

have money in order to build a financial plan. This simply isn’t true. A financial plan is to help guide a client through making many financial decisions and finding creative and efficient ways to fulfill their financial needs. The second misconception I hear is the belief that trading stocks on an online platform is the same as investing. These are two vastly different concepts with differing goals and approaches.”

What is the biggest thing, you think, that makes a business succeed?

“To me, a successful business is run by perseverance and the need to continue to learn. Learn from others around you; tap into their experience on how they run their business and relate it to your own. I’m fortunate in this regard because I work directly with business owners and have developed a rapport with them beyond being their finance and insurance guy. The Chamber has helped with these connections and conversations with other business owners.”

How did you build that rapport?

“I try to ask questions and closely listen to the answers. I find that clients may have an idea or a concept in their heads but aren’t sure how to act upon it. I ask questions to drive answers that help clients achieve their goals. This doesn’t come from selling a product, but rather the desire to help others around me succeed.”

What would you tell others who are looking to branch out in their own business?

“The risks are real; the rewards can be great but through it all it will challenge you every day. You will need to constantly make adjustments and changes as a business owner. The changes with the greatest impact are the ones that are made consistently and with ample planning. I’ve had to evolve and change my business, internal structure, technologies and vendors many times over the years. For a small business owner, finding the changes that made me more efficient with my time, and that of my staff, has made the greatest impact in the long term.”

How do you tie the local community into your business?

“For more than a decade, I have been very active in the Western Chester County Chamber and used that as a way to connect with the local business community. Moving forward, I have the opportunity to do so with our new location. We will eventually rent out a portion of the building but will have extra space to host community fundraisers. I feel like this is an added bonus since we have a unique location that can benefit others. For

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CONNECT TO EXPERT FAMILY CARE

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INVESTED IN CHESTER COUNTY

Contributing to the communities we serve is integral to our business. Whether it be investing millions in our infrastructure; protecting our watersheds; or assisting customers with their water bill, we seek to improve the quality of life of those we touch.

instance, the Sadsburyville Fire Company raised funds through various events at the property. We recognize their importance to the community and feel it’s our responsibility as the new owners to contribute as best we can.“

What are some of the best lessons you’ve learned as a business owner?

Leverage relationships, surround yourself with good people, understand how money works and most of all, help others when you see a need. www.pennriseadvisors.com

Karl Klingmann II is registered with and securities are offered through Kovack Securities, Inc. Member FINRA/SIPC. Kovack Securities Corporate Headquarters: 800-711-4078 www. kovacksecurities.com. Advisory services offered through Kovack Advisors, Inc. Penn Rise Advisors, Inc. is not affiliated with Kovack Securities, Inc. or Kovack Advisors, Inc.