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5 Main Benefits of Hiring a Financial Planner for Small Businesses

5 Main Benefits of Hiring a Financial Planner for Small Businesses

May 16, 2023

So, what are the benefits of hiring a financial planner for my small business?

Setting out on any journey, you probably wouldn't begin the trek without some sort of plan. From creating a roadmap of where you're going to bringing the appropriate supplies, it's unusual to embark on something potentially costly and time-consuming without a plan in place. The same holds true for businesses starting out. While getting your business off the ground may require flexibility and a scrappy approach, having a financial plan for growth, expansion, and overall success is necessary. 

According to the American College, 60% of business owners who answered their study reported they had not met with a personal financial advisor – which is the roadmap they need for future success. In addition, few of them had developed a plan to address future business changes. So why aren't small business owners' financial advisors used more often? 

We understand that running a small business can take up a significant amount of time and energy. Still, you can save yourself costly time, energy, and effort by working with a financial advisor today. A small business financial advisor can offer advice and guidance on succession planning and the future of your business. 

Improve your financial management

Hiring a financial advisor for your business requires an investment of money but can pay off big time down the line. Not only do financial advisors act as your confidant for all things finances, but they can help you see new opportunities with your business that may otherwise get overlooked. 

When you hire a financial advisor, you gain benefits that include saving time, energy, and money, improving your overall business strategy, and creating a long-term plan for success. But, beyond these initial benefits, you gain even more down the line. 

5 Main Small Business Benefits of Hiring a Financial Planner

1. Strategic planning & investment strategy

You need more than willpower and grit to reach your financial goals. You must bridge the gap between where your business is today and where you want to be in the future. Financial planners can help assess your current situation now and help you achieve your future goals efficiently and effectively through financial plans. Financial plans can take many different shapes and sizes, but they typically segment your financial picture, identify your current situation, and outline your planner's recommendations for moving forward. 

2. Risk management

Managing financial risk is essential for every organization, but financial risk management for small businesses is even more pressing as your entire business is on the line. Small businesses tend to operate with fewer resources, smaller profits, and lower cash reserves, leaving them more vulnerable than others. It can become a challenge for a company's profitability and survival during difficult situations. 

If you don't know threats pose a risk, the risks become harder to avoid. These risks can be mitigated or avoided with the right financial plan.

See More Financial Planning & Personal Finance Tips for Small Business Owners >>

3. Increased efficiency

A financial advisor will take a lot of stress off your plate and help to streamline your financial housekeeping, increasing your business's overall efficiency. Let them simplify your financial process and help you make crucial decisions. Trying to take it all on yourself could be overwhelming and cost you valuable time and energy. By working with a professional who knows the ins and outs of financial planning, they can support your needs and offer insight and advice that you wouldn't otherwise have.

4. Access to expertise

While you're working on growing your business, covering your bases and caring for your business beyond just the financials is critical. Working with an expert that can support small businesses with various financial services and products designed with your needs in mind can help you grow today – and tomorrow. 

Consider financial planning services that include:

A business financial advisor could be worth hiring if you need advice on tackling any of these challenges best. Such a financial professional could also be helpful as you seek to pivot toward emerging opportunities more quickly than larger rivals. Comparing financial advisors online can help you determine the best fit for your needs and long-term success.

5. Peace of mind

Being the boss can be fun and exhilarating, but there are also significant risks to going out on your own. Unfortunately, the failure rate of small businesses is high, and confidence in knowing your business will thrive can be hard to come by. The keys to success lie in proper budgeting, determining the right product for your market or audience, marketing it, and selling it at the right volume.

Staying on top of your finances is essential; a financial planner can help in these areas. Pathway Financial offers quality accounting and bookkeeping services to ensure your business finances run smoothly. 

Find the right financial planner for your business

At Pathway Financial, we understand small businesses and invest in your success as our own. Ready to take your small business to the next level? We are here to help. Learn more about how we can help, or schedule your appointment with our team today!