Financial advisors have been used by businesses for many years and they provide a very valuable service to small, medium and big companies. When you are starting out in business this may seem like an expense which you could do without and so many businesses don’t get one until later on down the line, some never bother to speak with a financial advisor. My good friend Scott Tominaga has been working as a financial advisor to businesses for a very long time and I anted to get his take on when businesses should hire a financial advisor, and what they can bring to the table, let’s take a look at what he shared.
The Benefits of Using a Financial Advisor
When you use a financial advisor for your business you will have a number of benefits available to you, the biggest of those benefits comes in the form of decision making, especially involving financial decisions. If this is your company then you will have a strong emotional involvement which can sway your opinion, for a financial advisor their only focus in on the facts, and the math, they will weight everything up and offer neutral advice. Financial advisors can also save you time that you would have previously spent weighing up decisions or courses of actions for the business’ finances. Financial advisors also give you the gateway to a large contact list and whether you are looking for an investor, a loan, a mortgage or any other financial support, they are likely to have a contact who can help you out.
When You Should Use a Financial Advisor?
Scott told us that you should at least meet with a financial advisor as soon as you conceive the idea for the business. In doing this they can help you to set up the financial structure for the future of the company, they can use their knowledge and their contacts to help you get set up and they can offer wonderful advice which can help you minimize risk and avoid errors. Even something like the tax system can cause issues at such an early stage, hiring a tax accountant is likely to be out of the question yet a financial advisor can share tips and tricks on staying on the right side of the law.
What About The Cost?
You should view your relationship with the financial advisor for your business as a smart investment and a cost of business. Using a financial advisor will help you to get better set up financially and will help you to avoid many mistakes which a lot of people make when they are setting up a business. This is why the money which you spend on a financial advisor for your business should be considered an investment only.
If you already have a business and don’t use a financial advisor, Scott says that you should seek one out as soon as possible.
