Business owners have no shortage of responsibilities. From overseeing staffing, payroll, inventory, marketing, and accounting, business owners wear dozens of proverbial hats. With so many responsibilities, finding the time to plan for the financial future of the business often proves challenging. This is exactly why a financial advisor (FA) can help. Although many people associate FAs with managing individual wealth and retirement planning, they can provide equally valuable guidance for business owners. Here are four ways a financial advisor can help transform your business.
As a third-party whose only objective is to help you reach your business financial goals, a financial advisor serves as your staunch ally in business planning. They can present you with potential solutions to help your business move towards your goals.
Business financial planning begins with analyzing your current operations. From there, areas that can be streamlined for cost savings can be identified. Likewise, areas in your business that are performing particularly well can be illuminated and further developed. Actionable steps to become more profitable can also be identified to help you reach your goals faster.
Having a sound exit strategy in place is essential for business owners. A well-conceived exit strategy will begin with an in-depth consultation. During this appointment, your advisor will ask a series of questions to get to know your business, the financial status of your business, your aspirations for the business, and your life after leaving the business. Armed with this information, a financially sound exit strategy can be designed that may include when you’ll leave the company, if you plan to sell the business to an employee or outside buyer, or whether you wish to pass the business on to a family member.
Designing an exit strategy empowers you with the knowledge you need to make changes or increase the growth of your business now so that you may wholly enjoy the fruits of your labor later.
Operating as a consultant, financial advisors can help business owners to protect assets by designing a comprehensive asset protection plan. Created to prevent forfeiture or seizure of assets through the creation of strategic legal entities, asset protection planning is an invaluable service your FA can provide.
An experienced FA will work with you on personal financial planning, concurrent with business financial planning. In other words, all plans will be viewed through two lenses. All financial plans for your business will be examined to ensure that they do not disrupt your personal financial goals and vice versa.
Working in conjunction with your accountant, financial advisors will look for ways to minimize personal and business tax liabilities while maximizing your returns on investments. In other words, you can count on an experienced professional to use a holistic approach to ensure cohesion between your personal and business financial planning strategy.
Whether you have just launched a business, operate an established business, or intend to launch a new business, all business owners can benefit from working with an experienced advisor. At Finley Davis, our experienced team has helped countless business owners successfully plan for their own future and the future of their business. To schedule a consultation with Finley Davis, contact us today by calling 541-342-2224.