Your small business is probably a very big part of your life. You need to make decisions about how to proceed, not only in terms of growth strategy and services but also financials. You may not have considered how a financial advisor can help you to make these choices-but the good news is that an advisor can lighten your burden by giving you the information you need to feel confident in the decisions that you make. Here’s what you need to know about whether your business could benefit from a financial advisor.
What Is a Financial Advisor?
A financial advisor is a professional who is experienced in helping people navigate their monetary decisions. They do not make those decisions for you, but they can provide you with important insights – as well as work alongside you to craft a strategy that will help you to achieve your financial goals. For small business owners, this is especially important. Simple questions, like how to manage your business income alongside your personal spending or how to fund your retirement using your small business, are the purview of an advisor.
What a Financial Advisor Can Do for Your Small Business
If you are like most business owners, you did not start your business just to pour money into it for minimal return or even a loss. You want to grow and thrive so that your business is meeting your daily needs, both now and in the future. That is where a financial advisor comes in.
If you are considering whether a financial advisor is the right choice for your business, consider whether you could benefit from assistance with:
- Choosing the right types of accounts to use for your business’ money
- How to save for, pay and minimize taxes
- Where to direct the profits that you earn
- How (and how much) you should save or invest
- Determining the real profit and loss of your business
These are just a few examples of the many services that a financial advisor could provide for you. Small businesses of any shape and size can find advantages in speaking with a professional.
When to Utilize a Financial Advisor
Is a small business financial advisor right for you? An ideal time to work with an advisor is early on in the business-perhaps before you even truly open your doors. This can get you started on the right foot so that you can spend more time in the critical early days on growth and adjustments than on figuring out your finances.
However, it is never too late to start collaborating with an advisor. Even if your business has been open for years, improvements are welcome and often possible. Maybe your business has been barely able to sustain itself for a long time, or maybe your growth has been so significant that you need help managing your burgeoning profits. No matter the scenario, most business owners would benefit from meeting with an advisor to streamline their processes.
Choosing the Right Advisor for You
Of course, the advice you receive from a financial advisor is only as good as the advisor themselves. That means that you need to carefully vet any advisor that you are considering working with. Questions to ask potential advisors for your small business include:
Are you a fiduciary?
Fiduciaries are legally obligated to be honest about any connections they have that could influence their advice. This protects you from professionals who recommend certain strategies for your money based on whether they would receive a financial benefit, such as a commission, rather than what is best for you.
How are you paid?
Some advisors charge a flat fee each time you meet with them, while others bill hourly and others levy a fee that covers unlimited guidance for a set period of time (such as a year). No one method is superior to the others, just make sure you understand your financial responsibilities in this area.
Are you experienced with small businesses?
Many small businesses face challenges that larger companies do not, like how to fund retirement or transfer the company to someone else when they leave. A financial advisor should be skilled with small business assistance specifically so that they can offer you customized guidance.
Trust the Experts to Help Guide You on Important Money Matters
If you are considering a financial advisor to help you make decisions about your small business’ finances, be sure to trust an expert. The professionals at Inflection Advisors would be happy to learn more about your situation and offer personalized advice that reflects your goals and helps you to succeed. Reach out to schedule an appointment to get started.