Do You Need a Financial Advisor as a Small Business Owner?

What gets into your mind when you hear the word startup?

Many people think it’s a new venture starting in a basement somewhere in Silicon Valley. But, please note, that even 8-year-old organizations can still be considered startups.

As a small company operator, you don’t want to remain a start-up forever. The whole point is to grow and get into the big leagues, right?

According to Forbes, you can graduate to a larger company when you begin to generate revenues above $20 million, or when you have a larger employee base, multiple offices, etc.. But how do you get there?

There are various reasons why many small ventures fail, and financial reasons sit atop that list! A lot of budding entrepreneurs do not understand money management tactics that guarantee business fruition and longevity.

You need a financial consultant! This one plays an integral role in monitoring your company’s financial health and putting together a strategy for growing your company. Read on for valuable insights.

Financial advisors: Who are they and what’s their deal?

Financial consultants are experts that assist small ventures with their financial challenges. They may be accountants or other finance experts who have experience dealing in this area.

Some of the responsibilities of a financial advisor for businesses include:

Checking your accounting records (P&L analysis).
Personal financial planning for business owners.
Assessing your current situation and identifying areas where you could increase revenue or save money.
Helping you develop a budget for your organization.
Coming up with retirement plans for you and your employees.
Assisting you with cash flow management and expenditure reduction.
Developing marketing strategies.
Providing financial consulting for small businesses.
Assessing the profitability of new ventures and ideas.
Providing recommendations for financing new endeavors or equipment purchases.
Managing your tax reporting and payment responsibilities.
Planning a long-term growth strategy for the company.

A good consultant is someone who understands your needs and goals, advising you accordingly. They have the capacity to guide you through the budgetary complexities of running a business.

4 reasons why you need a financial consultant for your business?

Budget constraints might tempt entrepreneurs to undertake investment planning themselves. However, many successful business operators can attest to the fact that qualified small business financial planners can help start-ups and other small companies get a return on investment.

Here are four reasons why you need assistance.

Save time and money

The most obvious benefit of working with a financial advisor for businesses is they save you time and money. They eliminate the need to spend countless hours researching effective methods of handling your accounts. In addition, they can help you avoid costly mistakes and unnecessary fees by recommending the best solutions for your operations.

Develop strategies for cash flow management

Your advisor will develop strategies for managing cash flow, allowing you to meet expenses without the need to take out loans. This allows you to focus on expanding your operations rather than worrying about paying off unnecessary debts.

Investment and retirement planning

An expert can help you to establish long-term and short-term goals for your retirement planning. This way, you will feel more confident in your investment choices, knowing that they are based on professional experience and are tailored to your needs.

They can also help you build a budget that prioritizes saving without compromising other needs. Plus, having advisors for business who know the ins and outs of retirement planning will ensure that you will be able to retire when and how you want.

Exit and transfer of leadership

Succession planning is an important part of any small business strategy. Apart from financial planning for companies, a good advisor can help you plan for the future—making sure that your company is prepared for any transition. The advisor can also help you create a plan for selling the business in the future.

Looking for an investment consultant as a small business operator?

Do you feel like you could leverage the help of a business financial planner to streamline your company’s finances? If so, you’re not alone.

Interactive Wealth Advisors can help. We take pride in being a top financial advisor in Oregon and can help steer your operations in the right direction and help make sure that all the hard work you put into your business doesn’t go to waste.

Our offerings cover a range of services that allow you to focus on what matters most: running your business successfully and getting closer to achieving your goals for retirement or other future investments.