It can be easy to neglect the financial aspects of a small business as you may find you just don’t have the time to handle everything. Without having adequate experience in handling finances, you could find yourself quickly getting into trouble. Choosing a financial advisor to help could be the solution.
The right financial advisor will add substantial value to a small business by offering valuable advice outside of the normal business operations and will make appropriate recommendations regarding the performance of your business.
So how do you choose the right financial advisor for your SME?
It can be very tempting to choose the first financial advisor you find but you must do some research.
It is important to look at their experience and professional background. Have they got all the right qualifications? Your advisor should specialise or have sufficient experience dealing with small to medium sized businesses in the financial market. This is an important consideration as working with small business owners can be far more complicated than simply managing portfolios for a company.
Speak to other small business owners and to family and friends. What are their experiences? Word of mouth recommendations are certainly a great starting point in your search.
Other things to consider; is the financial advisor a fiduciary? One legally obligated to work in the client’s best interests? You need to be able to trust the advice that they provide.
Look at their fee structure. It is wise to choose financial advisors who charge a flat fee as this creates more transparency. An advisor who works mainly on commission can create a conflict of interest. Flat fees encourage advisors to focus on offering value for money and remember you can always negotiate the fees.
Ask to see their reviews and referrals and check them out online. You can try comparison sites to help, using filters based on reviews and areas of expertise will make your job a little easier.
Once you have narrowed down your choices, set up meetings with at least 3 of them to see which one fits your business and requirements the best.
When you have chosen the right financial advisor for you and your business, get your advisors recommendations in writing. Make sure the advice you are getting is personal to you, as you want to make sure that you are getting the best advice available to you when making decisions about your business finances.