6 reasons hiring an advisor is a game changer.
There’s no denying that many small business owners find great success by taking a hands-on approach to their companies. They spend every day down in the trenches – drumming up sales, smoothing customer complaints, even packaging shipments – because, after all, no one is going to care about their business like they do, right?
But that attitude can have serious consequences when it comes to financial planning. A whopping 82% of businesses that fail do so because of cash flow problems, according to a U.S. Bank study. Nearly 80% of businesses said they struggled because they underestimated how much money they needed to start.
Few business owners are financial experts, and most are already consumed with the day-to-day responsibilities of running their companies. A financial consultant has the experience and expertise to help you look toward the financial future, assessing the viability of your business model and outlining strategies to quicken your pace on the path to profitability. These advisors are the best allies for accelerating your business toward the next stage of growth, and for helping companies weather any rocky patches along the way.
Starting and managing a business is one of the greatest challenges you will ever undertake, and, like any challenge, your chance of success is greatest if you surround yourself with the sagest advice. Read on for the reasons hiring a financial consultant is a game changer for your business.
- They give expert advice. For small businesses that can’t afford to hire a CFO, a financial advisor fills that role, weighing the financial impact of important decisions. Not sure if that large piece of equipment is worth the investment? Looking for a place to economize? Your financial consultant is an objective, professional resource who is trained to make your business more profitable by helping you focus on actions that will get the best results. Turn to them for accurate projections and advice on investment opportunities, exposure to risk and places you can save money. They can help improve your business plan and predict challenges that you don’t yet have the experience to foresee.
- They are valuable mentors. Don’t fall prey to the idea that you don’t need to understand finance as long as your business keeps making money. A meeting with a financial consultant is not just a review of your bottom line. Let them explain what financial challenges are confronting your business and your industry, and the strategies they created to help you push through them. It’s a valuable opportunity to learn so you can make sound decisions in the future.
- They help save time and money. Learning through experience isn’t always the best path for small businesses with limited resources. Unless you are a financial expert, chances are it’s going to cost you more time and money to try to figure out complicated financial matters on your own than if you hired an advisor. You also are denying your business the benefit of expertise. A financial consultant can help you avoid costly mistakes in areas that are outside your wheelhouse, and quickly complete involved tasks. They also can improve your business with innovations such as an internal accounting system that helps control expenses by tracking where your money goes.
- They let you focus on what you do best. As the entrepreneur, it’s your job to dream big and then make those dreams reality. A financial advisor will keep your creative side from getting buried under your company’s financial responsibilities. Let them handle time-draining duties such as ensuring you have enough cash flow to cover new projects, or that you set aside funds to cover your taxes. They will keep you profitable while you get ready to launch your next big idea.
- They prepare you for change. It’s only natural that you get a little emotional about the business that you have given your heart and soul. Financial consultants offer an unbiased perspective on the reality of achieving your goals on time, and help you develop a plan that keeps you moving in the right direction. They understand that changes to markets, technology, government regulations and competition are just a few of the factors that will impact future business, and they advise you about strategies you need to adjust. They also help you plan how to transfer your business to someone else when you retire – a process that winds up costing too many small businesses large amounts of money because they failed to consider what would happen ahead of time.
- They keep an eye on your personal finances, too. Too many entrepreneurs ignore their personal finances while they are trying to get their businesses off the ground. A financial advisor will help you ensure that all your bank accounts are healthy. They also are an important resource for handling retirement planning, personal income taxes, financing plans for your children’s education, and insurance against unexpected events like illness and life-changing disabilities.
The time and money businesses save by hiring financial consultants more than makes up for the initial costs. Their expertise gives you the opportunity to focus on your core business with the confidence that they will keep you safe from unnecessary risks and keep you on track for success.
No Boundaries has been helping businesses like yours grow and thrive for over 25 years. Contact us today to find out how our expert staff can help you meet your financial goals.
