Financial advisors aren’t just for personal finance; they can also help your business be more successful. While many businesses manage to meet their goals without input from a financial advisor, seeking their advice can help you during special circumstances. They can even make your day-to-day operations more profitable.
Here are four reasons why a financial advisor can help your business, and why you should book that first consultation.
They Can Help Implement a Money Management System
Many new business owners are very skilled in the tasks surrounding their core offering; it’s the business management side of things that gets tricky. Consulting with a financial advisor in the early days can help you set up a money management system.
A money management system is a way of tracking your expenses and revenue to plan ahead and stay successful. Many entrepreneurs are making the switch to the Profit First system, in which they plan their profits and make their expenses fit the plan. Others opt for a more traditional, revenue minus expenses model. By talking with a financial advisor, you can decide what’s right for you.
Read more on consulting with a financial advisor
They Can Help Attract Buyers
When you start your business, you may do so without the intention of ever selling. Other startups don’t consider themselves a success until they receive their first offer. Whichever camp you fall into, having advice from the best financial advisors can set you up for success.
When you sell a business, you need to display it in the best light possible without being untruthful. Sometimes that means moving money around to pay down supplier accounts and increase the cash flow—a financial advisor can highlight where and how to make those changes.
They Can Prepare You for Scaling and Growth
Working with a financial advisor in the early days of your business can also help you attract investors to get your concept off the ground. Furthermore, they can help you plan beyond the early days for future scaling and growth. Financial advisors can help you identify what you need, how to secure the money, and how to ensure your investors get a solid return that encourages them to stay with your business.
There’s a saying that goes, without a plan, goals are just wishes. When growing a business, you have to spend money to make money. A financial planner can help you determine how much you need and how you can get it without making mistakes that could derail your business.
They Can Coordinate Personal and Business Finances
One of the challenges entrepreneurs face is the interwoven nature of their personal and business lives. This is of particular concern when it comes to finances.
A financial advisor can help entrepreneurs and small business owners create separation between business and personal finances. They can also ensure that one area isn’t getting neglected in favor of another. For example, if an entrepreneur has stopped adding money to their retirement plan to invest in the business, a financial planner can outline how to make incremental changes to balance growth in both the personal and business portfolio.
A financial advisor can also take some of the stress away by ensuring your assets are protected. This could mean recommending a lawyer they work with to draft up paperwork regarding the division of your assets or recommending an insurance agency to keep your money safe.
As a small business owner, you would be remiss to overlook the value of working with a financial advisor. Find someone who understands your situation and book a consultation today.