It will come as no surprise to you that one of the most important areas which a small business owner should focus on is the financial management of the company. Unfortunately however, having a good idea to start a business, and having the drive to find success, doesn’t always equate to business owners being great when it comes to their finances. Sadly this is the reason why many businesses fail and also the reason why a financial advisor is a good idea. The question many ask is when to hire a financial advisor for your business, something which our good friend Scott Tominaga is going to help us answer.
Benefits of a Financial Advisor
The benefits of having a financial advisor on board for you business are plentiful and more than anything else they are going to be the best placed people to help take any financial decisions for the business. A risk which many business owners run is that they make decisions based on emotion because the business is theirs, and this can cloud judgment. A financial advisor will offer advice based on nothing but facts, and they can provide excellent insight. Financial advisors can also help you if you need great deals on mortgages or rental prices, if you are looking for an investor and they can help you to plan for growth.
When To Hire a Financial Advisor
Scott says that you should try to look for a financial advisor to support your business as soon as you can afford one. Having someone like that who has heavy involvement in the business can only ever be a good thing and their advice and their ability to forge opportunities is incredibly valuable. If you can’t afford a financial advisor working for you with regularity then you can always pay by the hour when there is a decision to make or when you require advice on which way to take your business.
There is of course no guarantees of success simply because you have a financial advisor on board, but what it will do is massively lower your chances of failure. Over 70% of the businesses which fail to succeed, do so because of poor financial management and decision making. When you have a financial advisor in your corner then you will have done all that you can to avoid financial ruin and to have someone on your side who can help you to make smart financial choices. A business doesn’t just succeed because it is well managed financially, but this is a solid foundation from which to launch your company.
If you have a small business and you have never consulted a financial advisor before, why not try and seek one out, have a chat about what they can do for you, and open your eyes to just how many benefits someone like that can bring to your business.