Why Your Business Should Start Hiring a Financial Advisor

hiring a financial advisor

Only about forty percent of small business owners have actually consulted with a financial advisor about important issues like retirement savings.

Are you prepared for what the future holds for you and your employees? Or, are you flying by the seat of your pants and making things up as you go?

When it comes to running a business, you need to think about the future.

Hiring a financial advisor might seem like an unnecessary expense for your business. But, bringing someone on who is an investment and money management expert will most likely end up saving you money later on.

Read on to learn more about the benefits of hiring a financial advisor to help you manage your funds.

What Does a Financial Advisor Do?

Put simply, a financial advisor is someone who suggests and provides a variety of financial services to their clients.

For business owners, financial advisors often offer advice on the following issues:

  • Managing taxable income
  • Determining business valuation
  • Implementing an employee benefits program
  • Choosing the right insurance and protection plans for your business
  • Creating a business succession plan
  • Setting up an IRA and planning for your own retirement
  • Helping you plan and put together a smart investment strategy

As you can see, a financial advisor provides a variety of important services and is an essential person to have in your corner when starting a business.

Benefits of Hiring a Financial Advisor

If you’re still not sure if hiring a financial advisor is right for your business, consider these other benefits that come with bringing in a professional:


It’s common for business owners to take on a variety of roles within their company. Often, they take on roles that they aren’t experts in and learn as they go.

In some cases, this works out fine. But, when it comes to your business’s finances, it’s better not to take a learn-as-you-go approach.

Hiring a financial advisor will allow you to work with someone who is an expert in managing money and avoid mistakes that could seriously impact your business.

A financial advisor also knows how to interpret data and put together accurate projections for your business’s future income. They take a lot of the guesswork out of the equation and leave you free to focus on other areas of your business.

Saving Money and Time

Since they know exactly what they’re doing, a financial advisor also saves you time and money.

When you work with a financial advisor, you’ll have more time to dedicate to the areas of your business in which you truly are an expert. As a result, your business will run more efficiently since you aren’t spreading yourself too thin and neglecting the work you do best.

Since their only job is to manage your business’s money, a financial advisor will also help you avoid expensive mistakes and oversights.

Preparation for the Future

A financial advisor can provide clarity and help you make the right decisions for your business’s future.

As a business owner, it’s easy to let emotion get in the way. This is especially true when you’re handling difficult issues like pay cuts or layoffs on your own.

An advisor will help you assess the market look at things more objectively and avoid making rash choices or taking risks that could negatively affect your company later on.

A financial advisor can also help you keep your emotions in check during periods of economic turmoil, such as when the market takes a nosedive or new government regulations are implemented.

Coordinate Personal and Business Finances

In addition to keeping your business finances in check, it’s also important for you to make sure your personal finances are in order.

A financial advisor will work with other professional advisors, such as accountants, attorneys, bookkeepers, and insurance brokers to help you make sure your personal and business finances are all coordinated for tax and investment purposes.

How to Choose the Right Financial Advisor

When it comes to hiring a financial advisor, it’s important to take your time and make sure you’re working with someone who has your business’s best interests in mind. These guidelines can help you make the right choice:

Hire a Fiduciary

A fiduciary is someone who is legally obligated to keep your best interests in mind. Make sure you hire a financial advisor who is willing to say in writing that they are a fiduciary in all aspects of their relationships with clients.

Find a Specialist

You should also look for a financial advisor who specializes in working with individuals whose situation is similar to your own. Find an advisor who has lots of experience working with entrepreneurs and business owners.

Learn About Their Background

Do some research ahead of time to make sure your potential financial advisor does not have a history of misconduct.

The Financial Industry Regulatory Authority offers a free tool just for this, as does the U.S. Securities and Exchange Commission.

You should also make sure they have, at the very least, the following credentials:

  • Certified Financial Planner certification
  • Certified Private Wealth Advisor certification

These certifications help you know that you’re hiring a legitimate professional who has the expertise necessary to manage your finances.

Consider Their Personality

In addition to credentials and a clean background check, you also need to keep their personality in mind. It doesn’t matter how qualified someone is if you simply don’t get along with them.

Look for someone with whom you can collaborate and share ideas with without feeling judged or looked down upon.

Make Sure You’re Treated as an Individual

Sometimes, financial advisors have so many clients that they fall into the trap of treating everyone the same and offering one-size-fits-all advice.

Make sure you hire someone who takes you’re unique situation into account and offers advice customized to your specific needs. If you feel like you’re only getting generic advice, you need to look elsewhere.

Hire a Financial Advisor Today

Now that you know more about the benefits of hiring a financial advisor, it’s time to start looking for the right person to manage your business’s funds.

At SurepPath Wealth Management, we offer a variety of financial planning services to help you keep your business on track. Contact us today to learn more about what we can do for you!

By | May 24th, 2018|Featured|

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