One of the most common questions which we are asked here, specifically business questions, is what can the role of a financial advisor play in a business? Whether a financial advisor is necessary? And when should a business hire a financial advisor? To help us answer those burning questions we have consulted with one of the best in the business, Mr. Scott Tominaga. Scott has been supporting business throughout his career and he was most excited to contribute to giving you some answers around why your business needs a financial advisor.
The first thing to mention is that on the third question of when a company should hire a financial advisor, Scott’s response was ‘as soon as the company can afford one;. His reasoning for that can be explained by looking at what a financial advisor can bring to a business.
For someone to make financial decision about their own company they need tome able to completely remove any emotion and base their decision on fact and logic. This however is almost impossible if the business is your own, as your heart will always be factored into the decision making process. A financial advisor on the other hand will deal in nothing more than numbers and probabilities when making a financial decision, which is why they are great to have on board.
When you hire a financial advisor you are not just getting their services, but also their little black book of contacts. Don’t underestimate how many people a financial advisor knows, or how much they can help you with what you need. Let’s say that you are looking for new premises, fresh investment or even a good deal on a mortgage, your financial advisor will be able to put you in touch with someone who can help you with what you need.
Did you know that less than 50% of all businesses will make it past year 5? The most common reason for the failure of these businesses is poor financial management and decision making. The accountants will of course deal with the incomings and outgoings of your business but it is the financial advisor who will help you to shape your financial plan going forward. You can avoid exposing yourself too much, you can make smart financial plans for growth and ultimately you can have someone on hand who will be able to spot danger and steer you away from it.
The clue really is in the title with this job role, financial advisors are able to give you great advice which can really help you to reach the levels of growth and success which you are looking for. These men and women only have their client’s in mind when they are offering advice and once they get to know you and your business they will be able to serve you to the best of their ability.
Don’t delay, get yourself a financial advisor as soon as you can.