Financial planning is an essential part of conducting business successfully. If you are considering purchasing a business or starting up one from scratch, having a financial advisor will be a great help and can save you a lot of money. If you are new to business, you might be wondering exactly what role a financial planner would play in your business.
Here are some of the aspects of business a financial expert would look at to help you: –
- Income protection
- Identifying business goals and aims
- Business debt management
- Risk management – insurance
- Long term planning for expansion and growth
- Investment strategies to maximise income
- Managing tax to maximise deductions
- Business exit strategies
- Wills and trusts for when you sell the business
- Asset protection
- Estate planning
- The financial planner may also work with other professionals such as accountants or lawyers.
They don’t just fix up your finances and then leave. Working with a financial planner is a long term thing as circumstances and rules tend to change over time. This means that what was once a good plan may need to be tweaked or changed completely in order to continue as a plan that is successful. It takes time to review the strategies and work out if they are still right for your business and then if they are not, to advise of and implement different strategies that meet your goals better.
It’s important to ensure your financial advisor is an FPA member as they are obliged to provide a higher level of service and ethics to their clients. They must also do ongoing training which means they are always up to date in their knowledge and hence, their advice.
The ongoing relationship you have with the professional people who help you with business advice of all kinds is a necessary one. Often, you may think it is costing you too much, but the good advice you get saves you a great deal, so it’s worth it to ensure the success of your business.
A financial expert in business is worth their weight in gold and can become a support person for your business goals right from when you first draft out your business plan. It is their input into the financial section of the plan that will help your potential investors to make a lending decision in your favour. They will work with you right until you decide to sell the business or retire, whichever comes first.
If you are interested in purchasing an established business, they will be able to tell you whether it is viable and draw up a plan for growth and expansion as well as the protection of assets that you may not have thought of.