How Your Business Can Benefit From a Financial Advisor

By Alexandria | Hightower on September 26, 2023

Running a successful business demands more than just a brilliant idea and sheer determination. In today’s ever-evolving and hyper-competitive business landscape, entrepreneurs face a myriad of financial and operational challenges that can make or break their ventures. From managing cash flows and optimizing investments to navigating complex tax regulations and planning for long-term growth, the responsibilities can be overwhelming for even the most seasoned business owners. This is where a financial advisor can step in as a valuable partner in your entrepreneurial journey.

The right business planning specialist can bring a wealth of knowledge, experience, and strategic insights to the table, tailored specifically to your company’s unique needs and goals. Whether you’re a small startup or a well-established enterprise, an advisor’s expertise can help you manage risks and make well-informed decisions that unlock growth for your firm.

How Can an Advisor Help Your Business?

Working with an advisor doesn’t mean you have to lose that do-it-yourself, entrepreneurial spirit that’s carried you to this point. Rather, a trusted advisor can help shoulder the load of legal, operational, and financial management so that you can focus on actually running your business day-to-day.

Here are some of the potential benefits your organization could enjoy from working with a financial advisor.

Bolster Business Operations

In addition to helping you assess your business needs and ensure your bases are covered, an advisor who specializes in business planning can meaningfully contribute to your firm’s growth. They can improve the efficiency of your financing, fulfill tax and regulatory requirements, and identify ideal partners or areas for expansion. Some of the financial and operational tasks an advisor can support you with include:

• Spending and saving strategies
• Tax planning and management
• Recommended accounts for operating your business
• Cash flow management
• Profit and loss analysis

Improve Your Benefits Offerings

Ironing out a benefits plan can feel like an overwhelming and time-consuming administrative task, but a financial advisor can help you come up with a competitive offering that fulfills your team’s needs and makes your company an attractive destination for prospective employees. Although the scope of work can be tailored to your unique business needs, here are some of the ways an advisor can support you in benefits planning:

• Consulting on the details of your compensation plan
• Managing relationships with benefit providers and plan custodians
• Assessing the impact of your benefits plan

In the post-Great Resignation era, compensation and benefits packages play a pivotal role in talent acquisition and retention. Advice from a qualified business planning professional can be useful in this regard.

Build a Portfolio Aligned With Your Goals

No matter which industry you operate in or the customers you cater to, your ability to manage investments is critical when it comes to your firm’s long-term success. A financial advisor can work with your financial team to help allocate your business’s assets in an effort to generate returns and manage risks, which may include hedging or making adjustments to account for market movements.

Not only will a financial advisor work with you to determine your risk tolerance and allocate your assets accordingly, they can also:

• Overseeing current assets
• Establishing impactful investment goals
• Provide insight into which assets make the most sense for your goals
• Build short- and long-term cash flow needs into your investment strategy
• Help ensure your portfolio remains manageable

A financial advisor is also able to offer you personal financial strategies beyond the scope of your business. This may include considerations such as how and when to retire, as well as identifying which investments may align most closely with your future

lifestyle. Whether they are helping optimize your capital for future business growth or preparing you for your post-career life, a financial advisor can be invaluable.

Develop a Future-Proof Strategy

As a leader, you have worked tirelessly to build your company. However, when you are ready to retire or move on to your next business venture, you will need a succession plan that ensures your hard work does not go to waste.

A good succession plan can help “disaster-proof” your business, identifying qualified future leaders while also promoting training and development to address any existing skill gaps that could disrupt operations during a transitional period. Succession planning isn’t just about addressing the what but also the how and why behind your plan to step away.

A financial advisor can work with you to develop an exit plan that not only aligns with your business’s long-term goals, but also ensures any liquidity needs of your own are met.

Partnering with an Advisor

This list is far from exhaustive. Different advisors have professional certifications and areas of specialty that they may be able to leverage on your behalf. The most important thing to remember about financial advisors who specialize in business planning is they come in all shapes and sizes, offering a wide range of services. It’s up to you to determine what services your firm needs most and identify a trustworthy partner who can lend relevant insight to help your company grow.

Part educator, part consultant, a financial advisor can help you navigate the financial complexities of your business, empowering you to focus your efforts on your employees and customers. Connect with us to explore how we can address your business needs.