From a financial standpoint, knowing where to turn for business help can make a huge difference. Information about loans, start-up costs and profits can give owners a leg up on the competition. But that helpful hand is not always easy to find.
Here are some things to look for when seeking a financial advisor for your small business:
Short- and Long-Term Plans
As a small-business owner, surviving the initial challenges and building a stable future are top priorities. A knowledgeable advisor should guide you through both short-term survival strategies and long-term growth plans.
Questions about small-business loans and start-up costs are critical in the early stages to avoid falling deep into debt before acquiring customers. At the same time, a big-picture strategy should be in place to support expansion when the business reaches that stage. Be sure to select an advisor who understands and prioritizes both short and long-term goals.
Acquiring Capital for Your Business
Raising funds is essential for small-business success. While many owners rely on personal funds or business loans to launch, these methods can carry significant financial risks if the business doesn’t perform as expected.
A skilled financial advisor can help you explore alternative funding options, such as connecting with investors who share your vision and are willing to provide financial backing. The right advisor will guide you to resources and strategies to secure the necessary capital while minimizing risk.
Aligning on Goals
Everyone involved in your business—financial advisors, partners, and investors—should have a shared understanding of the company’s mission and goals. A unified team working toward the same objectives increases the likelihood of long-term success.
When interviewing financial advisors, communicate your vision clearly and seek their input on achieving those goals. If their approach doesn’t align with your values and plans, they may not be the right fit for a lasting partnership.
Choosing the Right Fit
Finding the right financial advisor involves careful evaluation. Set up meetings with multiple professionals to assess their expertise, communication style, and compatibility with your business needs.
Be aware of how advisors charge for their services. Common fee structures include:
- Asset-based fees: A percentage of your investments, typically charged annually.
- Flat fees: A fixed monthly or yearly rate.
- Hourly rates: Charges based on the time spent.
- One-time fees: A single charge for creating a financial plan.
By doing your homework and carefully vetting potential advisors, you’ll find a partner who can help turn your business goals into reality.
