Starting and maintaining a business comes with its fair share of moving parts, from determining how to target your ideal audience to making sure that taxes are paid on time. With all of these elements to consider, it can feel overwhelming to navigate the financial aspects of a business, especially if you have little or no experience in this realm. A financial advisor can help your business make good decisions that will last into the future, regardless of whether you are a large company or a one-man operation. For small businesses especially, some unique challenges warrant the advice of a professional. Here’s why having a financial advisor for your business can be beneficial.
They Can Help You Navigate Business and Personal Separation
One of the hardest things for small businesses to do is to separate their finances. If you own a business as a sole proprietorship or with just a few employees, you likely find it easy to mix up what money goes where. Maybe sometimes you just pay for office supplies out of your personal bank account; some small businesses don’t have a separate account for the business at all.
These are risky methods, and a financial advisor can help you understand how to split your business off from your personal finances while still allowing you to provide or receive funding when needed. Balancing your personal financial goals with your business’ needs is a nuanced process that a professional can help you to learn and get better at.
They Can Equip You to Scale
Most businesses dream of growing, bringing in more customers and generating more revenue. However, with this process comes some financial growing pains for the unprepared. Do your business accounts provide benefits for larger sums deposited therein? Will you struggle to manage all of your financial accounts if you continue to grow at your current pace? Being able to scale and adapt to the flow of customers helps you keep your time commitment under control and ensures that you are making smarter financial decisions no matter your size. A financial advisor can help you set up strategies early, before your growth explodes, so that you don’t hit roadblocks along the way.
They Can Help You Understand Retirement Options
Even if you plan to continue to run your business after you retire, it is important to prepare yourself with retirement accounts that can supplement your earnings. Starting this process early and baking it into how your business operates is a powerful way to take the pressure out of your hands and shore up your future. A financial advisor can review the options unique to you based on your goals and the type of business you operate. Some business types come with their own unique retirement account possibilities.
They Can Offer Guidance on Succession
One way or another, your business will eventually pass into someone else’s hands-either by choice or not. A financial advisor can help you to prepare for this transition, whether that’s handing the business over to new management as you enjoy retirement or cashing out the business’ assets for charity after you pass away. The right type of succession planning for you will depend on your goals and whether you want the business to continue after you leave, but there are a variety of options that a planner can educate you about.
They Can Boost Your Confidence
There is something to be said for feeling confident in the financial decisions that you are making about your business. Uncertainty can lead to second-guessing, which can result in making choices that are less than ideal for your situation. In some scenarios, lacking confidence can even cost you money or prevent you from enjoying returns that you otherwise might have. A financial advisor can offer guidance on how to help your business finances succeed so that you can feel confident in your decisions and how the money is being handled. This equips you with the knowledge and experience to grow, scale and expand by making smart choices.
Trust a Professional to Help You Learn What You Need to Know
Even the smallest businesses can benefit from a financial advisor. While most advisors will not directly make decisions on your behalf, they can share their years of experience and knowledge to equip you with the skills you need to make the choices that are right for your business. Inflection Advisors is happy to work with small businesses to achieve their goals and offer personalized suggestions on how to improve. Reach out to learn more or to schedule an appointment to get started.
