30% of businesses fail because the owner runs out of money.
As a business owner, you’re more focused on building your business than running financial reports. Having access to a financial consultant, on the other hand, can help you do both.
That way, you don’t have to worry about running out of money, which can put all that hard work to a grinding halt. With a strong financial plan, you can make sure your business remains a part of the smarter 70%.
Keep reading to discover five reasons your business needs a financial consultant.
1. Peace of Mind
Building your business requires a lot of strategizing and a strong work ethic. You’re bound to feel a little stressed out from time to time. When you aren’t sure what to do about your company’s finances, you’re adding even more stress to an already full plate.
A financial advisor can offer you peace of mind.
Instead of stressing out about the unknowns, they’ll help you determine the next steps. A financial consultant will answer all of your questions so you don’t have to worry about a long list of “what-ifs.”
Rather than stressing out over those unknowns, you can set your anxiety aside.
Their financial advice can help relieve the concerns you’re carrying around.
Needing to make day-to-day financial decisions can also slow down your productivity. When you fall behind, the stress will start to build up again.
Your advisor will help you determine how to react and make smart business decisions. The next time an impromptu financial decision arises, you’ll know exactly how to act. As a result, you won’t have to stress out when unexpected questions pop up.
Instead, that peace of mind can help you focus on other areas of the business that need your attention.
2. Access to Knowledge & Experience
60% of small business owners feel they don’t know enough about accounting or finance.
You can’t become a financial expert overnight, and that’s okay. Not everyone knows everything.
That’s where your financial consultant comes in. They can fill in the gaps in your knowledge so you’re not left with unanswered questions.
Their specialized education and training can benefit your business, too. Making assumptions about the financial moves you need to make can lead to risks. A financial expert’s previous experiences can help you avoid these risks.
They’ve already made mistakes (or seen other people make those same mistakes instead). Rather than making those costly mistakes yourself, you can leverage your advisor’s experience to skip those mistakes yourself.
Their knowledge can also steer you in the right direction.
Ask them about investments or their experience working with other businesses in your industry.
You can also check out these questions finding a consultant can help you answer.
If you need more specific help, research different types of financial advisors. Their niche expertise can help achieve your business goals.
Their specific industry-knowledge can also give you an advantage over your competitors. As a result, you’re avoiding unnecessary mistakes and making business-savvy decisions for your company’s future.
3. Plan for Rough Patches
You can’t always anticipate an economic crisis, but you can prepare for them.
A financial consultant will help you develop a game plan for these emergencies. For example, savings can help support your company when times are rough. That way, you’re not digging into your own pocket to keep the company afloat.
Sometimes, business declines and you experience a period of lower revenue.
During that time, you’ll still have expenses to pay. After all, your employees are expecting a paycheck. The lights need to stay on, too.
If that decline lasts too long, you might end up too close to risking bankruptcy.
An advisor can help you plan for these situations. With significant savings in place, you can avoid bankruptcy and still cover your debts and expenses.
In the meantime, you and your team can determine a game plan to improve business performance and increase revenue again.
4. Prepare for Future Growth
Your company will experience different stages of business growth in the upcoming months and years.
A financial advisor can help you keep a clear head. Their insight can help you focus on your business goals so you can achieve long-term growth.
To grow, you need a business objective, SMART goals, and the tactics to help you accomplish it all. A financial consultant can help you outline every step of your plan.
Once you achieve your business growth, what’s next? Your consultant can also help you determine the smartest investment opportunities so your business never stops growing.
5. Avoid Personal Risks
You might become so focused on your company’s financial needs as a business owner that you forget to consider your own.
Remember, 30% of businesses fail because the business owner runs out of money. Instead of falling into this trap, it’s important to find a balance between your business and personal finances.
An experienced financial advisor can help you consider both. After all, you need to plan for cash flow, your investments, and taxes.
Your financial advisor can also work with your estate attorney, insurance broker, bookkeeper, and accountant so the entire process flows.
Coordinating between your business and professional life can ensure long-term success. Instead of taking personal risks that hurt your business, the two will work as one. With someone experienced in it all, you’ll feel confident you’re making the right steps in your personal life and your business.
Cha-Ching!: 5 Reasons to Find a Financial Consultant
You’re already busy enough worrying about connecting with the right contacts, hiring the right people, and driving your business toward success. However, that doesn’t mean you can neglect your company’s finances.
Keep these five reasons to find a financial consultant in mind as you start building your business.
With an advisor on your side, you can keep growing with a plan in place. That way, you won’t run out of funding before you get the chance to start growing.
Check the Business Finance section of the blog for more helpful guides and tips.