Financial advisor for business owners: Tips & services
A business financial advisor is a financial professional who provides business advising or guidance to businesses for compensation. These advisors are licensed to provide various services such as investment management, tax planning, debt management, budget assistance, and financial planning for businesses. These advisors can act as a “one-stop-shop” for a business and provide them with everything that is needed, from business portfolio management to insurance projects.
Business financial advisors must be registered with their state and carry certifications such as the Series 65 license to conduct financial services for businesses. A wide range of other certifications or licenses may be required depending on the services that the financial advisor provides for businesses.
How can a business financial advisor help my business?
Business financial advisors have the expertise and experience to help business owners maximize the most of their initial capital investments. These advisors help individuals assess the viability of their business models and outline strategies and timelines for one’s path to profitability. Here are some ways that a business financial advisor can accelerate, advance, and improve one’s business success.
1. Business Opportunities and Finances
Regardless of the product or service a business provides, a financial advisor is an expert at asking the right questions to determine what can be improved in one’s business and in one’s personal finances to optimize the business in a more efficient way. By finding the answers to common finance mistakes in one’s business, business financial advisors can accelerate the success of the business by focusing on profitable actions that gain the most results.
As a small business owner, one is often expected to perform many roles within the company, from operations to leadership and finances. At times, one may act as the virtual head of many departments, from product development and marketing to IT support. One may even find themselves in roles responsible for deliveries, packing, customer service, and even property maintenance. This can often mean that finances get pushed to the bottom of the priority list behind the mountain of other responsibilities a business owner may have. In these circumstances, in order to avoid letting the finances of a business fall behind, it is in a business owner’s best interest to hire a financial professional to help manage the finances of the company. Many things can go wrong when a business owner manages their own finances of the company, especially with other responsibilities stacked up. Business financial advisors prevent mistakes from happening that can often be overlooked by a business owner, especially since finances are the main responsibility for a business financial advisor. Finances should never be taken lightly by business owners. Money mismanagement, cash flow problems, and delayed or overpaid vendor accounts can cause many new businesses to close. A financial advisor can prevent these problems from occurring and help resolve any financial issues that arise.
Business financial advisors can also help in other ways. A very useful skill set that an advisor can bring to the table is accurate financial projections for the business. This allows business owners to establish and grow their businesses by attaining insights at every stage of growth and expansion. An advisor can provide objective and professional financial observations with timely insights regarding factors such as exposure to risk, economization, and investment opportunities. These insights can help business owners capitalize on opportunities and make the most of certain scenarios or circumstances while also developing and improving upon their business plan.
2. Business Cost Savings and Profitability
Business financial advisors are experts in their craft, and that includes saving business owners costs and guiding them to profitability. These advisors are known to help business owners take control of their business. Figuring out one’s finances on one’s own can often be a fatal mistake for businesses as they deal with common mistakes all business owners experience when managing their finances. These mistakes can be avoided, saving business owners time and money by hiring a business financial advisor who has already been in the weeds and seen the typical financial scenarios that nearly all business owners face.
By working with a business financial advisor, one can expect to receive all kinds of help managing the finances of a business. Complex financial tasks can be taken care of by a financial advisor with ease and in a short amount of time compared to a business owner learning and figuring out the task as they go. Tax planning is a great example of this as a business financial advisor can create a tax plan in hours while a business owner could take days on this tax only to make a crucial mistake or miscalculation along the way. Another example can be seen with a business financial advisor, using his or her past experience, establishing an internal accounting process for monitoring expenses. Financial business advisors understand and know what types of processes must be included in a business’s overall financial operations. Learning through experience is often a common way for business owners to learn new skills, processes, or techniques that can help them with their businesses. However, this type of learning can result in poor short-term performance, unforgiving mistakes, or even bankruptcy in some severe examples. Business owners do not have the time to learn from their mistakes with their business on the line. A trusted business financial advisor can help businesses avoid these mistakes, saving them the pain and suffering of learning financial business practices on one’s lonesome.
Helping you achieve your evolving financial objectives
3. Future Developments and Business Growth
With business owners so invested in their own business, it is understandable to notice that one may be acting and making business decisions based on emotion and not logic at times. Business financial advisors have battle experience when it comes to operating and running a business. They have seen and been through various business scenarios, often more severe than anything a typical business owner experiences. This allows business financial advisors to stay calm and collected when assessing financial scenarios. Financial advisors react only with logic to business problems, taking the emotion out of the situation. This provides business owners with much-needed clarity and focus, helping to bring one’s businesses back in the right direction for stability and growth.
In order for growth to happen, a business requires a business plan, objectives and goals, and tactics and strategies to allow for advancement and expansion to happen. A business financial advisor has a variety of tools that he or she can put to work in order to help make this happen for the future of the business.
4. Planning Personal Finances in Coordination with Business Finances.
Many first-time business owners are motivated to start, open, and build their businesses in order to secure their own personal finances and work for themselves rather than for another company. Due to the consuming nature of starting one’s own business, it is common for first-time business owners to focus solely on the needs of the business and neglect their own personal finances, even going so far as to have a merged account for both business and personal finances. A seasoned business financial advisor can take over one’s financial management and ensure that these common mistakes do not occur. Not only can they teach business owners how to properly run and manage their company’s finances, but they can apply the tactics and knowledge they have gained from years of business operations and apply it to the business to help it succeed and grow. Just as the financial health of the business is important, so is the financial health of a business owner’s personal finances. In order for a business owner to perform well and input 100% of their time and effort into their business, they must also ensure that their personal finances are in order. Business financial advisors can take a look at one’s personal finances and apply strategies and tactics to help better them and provide guidance on saving, investing, taxes, and cash flow management in order for business owners to succeed in their personal finances as well as their business’s finances. This allows for a financial advisor to act not only for the business but also as a personal advisor, which is equally as important.
Oftentimes, business owners avoid hiring a business financial advisor in order to save costs; however, this is the wrong mentality. Not having a business financial advisor can have severe consequences that can set one’s business back and even incur unnecessary costs that could have been saved or detected with a business financial advisor. Hiring a business financial advisor to help with specific tasks can save not only time but also money and uncover potential hidden opportunities that a business owner may never have found otherwise.