Why do Small Businesses Need a Financial Advisor?

According to Investopedia, “only 40 percent of small business owners have consulted with a financial advisor.”  More disturbing, is the stat from American Express Open Forum: 30 percent of small business owners haven’t calculated how much money they will need in retirement, and less than 25 percent have a formal plan for the succession of their business.

In spite of the numbers above, most small business owners want their business to succeed and to pass down to a successor, but handling all facets of your business’ finances may not always fit into your busy schedule.  Some business owners handle this with a team.  In their team might be a CPA, bookkeeper, business attorney etc.  Having a team is good, but sometimes those professionals are blinded by their own area of expertise and miss options a financial advisor might bring to the table.  That is why a financial advisor can help your small business grow and strategize, while working with your existing team for stronger results.

Here are some of the ways a financial advisor like Americore can help your business.

Setup your Business for growth.  As a business service, a financial advisor offers analysis of your business health, status, and potential.  Americore is experienced at the analysis process, and can offer the clarity of an objective view, to help walk clients through the programs and opportunities that best fit their business.  Americore looks at programs that fit your business needs today and, in the future, based on a strategic goal achievement plan.   When you use strategies that are a good fit to your business, you can reach those goals faster. 

Hearing a fresh perspective, about ways to meet your business objectives can offer you clarity and inspiration on how to approach your day to day running of the business.  It can also open your eyes to options you did not know were available to you and your firm.  Your preparation for future growth must include a plan for your successor or exit.  While you may not be ready to make that decision today, a financial advisor can show you ways to prepare for either eventuality.

Improve Profitability.  Even as you prepare for the future, your business can improve from becoming more efficient and profitable.  Advisors such as Americore professionals bring their expertise and experience to bear for your benefit, ensuring that your business has, or gains, a healthy cash flow and is not mismanaging money.

Because of their experience, an advisor can offer invaluable accurate projections so you can plan and grow your business with focus.  Even when you start with a plan and have a vision, sometimes the daily running of your business can sidetrack you.  An advisor can see where you may have deviated from the vision, or perhaps may spot an opportunity where you can branch out your business for added growth.

Improve Efficiency and Save Money.  Sometimes, when business owners feel they can’t afford to contract professionals for financial tasks, they lose time and money.  A professional can help your cash flow in ways you may not have imagined, such as incentives, credits, rebates, and more.  You are an expert in your field, but not using experts in finance can mean lost dollars and opportunities.  

Keep Personal as Well as Business Financial Plan on Track.  Starting your own business is not just about a vision, but usually is to improve your own financial picture.  Unfortunately, too often, in the bustle of launching and running a business, entrepreneurs lose sight of their own finances.  Experienced financial planners can help you see the bigger picture without overwhelming you.  Coordination with your team, your business attorney, bookkeeper, accountant, insurance broker and more can help keep your finances on track, without pulling you away from your business focus.

If you run your own business, you already handle the important decisions, but a financial advisor can reduce the stress, by sharing their expertise and information to help facilitate the decisions you need to make.  Americore understands the stress, time requirements and analytics of business, but our area of expertise, as finance advisory, can help you excel in yours.