Why Small Business Owners Need Financial Advisors
If you want to know the answer to the question “Do Small Business Owners Need Financial Advisors or services of Financial advisory in Pune, then you have to go through this post from start to end.
According to a stat provided by American Express Open Forum, “30% of small business owners haven’t calculated how much money they will need in retirement”. We know that you will be thinking that if 70% of small business owners have calculated how much money they will need for retirement then the demand for financial advisors should not be too high. But, “Less than 25 percent small businesses have a formal plan for transferring their business to a new business owner when thinking for retirement”, another stat provided by American Express Open Forum.
So, only 40% of small business owners have consulted with a financial advisor. This is a low percentage given the stats above. If a small business owner has made essential plans for the future, then it would be difficult for that owner to invest strategically for the near future when he/she has to deal with capital allocation, personnel decisions, how to grow sales, and how to cut costs.
Every small business owner wants his or her business, future and children’s future to be in their control. But if all that time and energy is being put into the business, then who is going to keep a sharp eye on your personal finances? If you are not going to have time to see if the Dollar is appreciating or depreciating and how it might impact your XYZ Inc. investment for the current quarter. You also do not have time to dig into 10-Qs and 10-Ks, follow interest rate moves, track foreign exchange movements and read Federal Reserve statements.
We can say, a savvy small business owner knows that delegation to the right party saves time as well as is fiscally rewarding. So, that the owner will strongly consider hiring financial advisory services. But, he /she also needs to figure out which financial advisor or financial advisory service company to hire. Financial advisory services include Controllership & Finance Management Co-sourcing, Financial Redesign & Implementation, M&A Advisory & Due Diligence, Budget Modeling & Reporting and Activity Based Costing Design & Implementation.
In order to hire a good financial advisor, ask some important questions such as- Are you commission-based of fee-based, Do you specialize in working with small business owners?, A CFP must meet education, examination, experience and ethics requirements, How can you save me time? How will you offer personalized service? What types of advanced technology do you use to keep up with the rest of the industry?, etc.