Even in the midst of a global health crisis, small businesses are still on the rise. In fact, over 835,000 new businesses were registered in the UK last year.
This may be an encouraging statistic to join in 2022, but opening—and growing—a business is no easy feat. It involves extensive research and detailed planning to execute your vision — especially when it comes to finances. While some may hesitate to seek expert advice, a financial planner may be just the person you need for your business.
But first, what is a financial planner?
Financial Planners: Who Are They?
Financial planners are qualified investment professionals who have completed education and work requirements, who specialize in helping individuals and companies achieve their financial goals. A post on financial planners from FXCM highlights three types of licenses: Certified Financial Planners (CFP), Chartered Financial Analysts (CFA), and Personal Financial Specialists (PFS). These professionals will work with you in critical areas like capital formation, expense tracking, tax planning, asset allocation and risk management — going over the details of your financial situation so you can focus on the big picture.
They can also help you boost your passive income, which is considered the future of business and finance here at Passive Business Academy. Additionally, financial planners will ensure that your personal finances work in synergy with your business finances, for cash flow, investment and tax purposes.
Is now the time to hire a financial planner for your business? Here are some telltale signs that it is:
Your business is facing budget challenges
If your business is struggling financially, this is the most obvious sign that you need to hire a financial planner. Failure to properly manage your finances can lead to your business closing down sooner than you expected. In a report published by The Telegraph, it was revealed that 20% of small businesses don’t even make it past the first year due to poor budgeting.
By creating budget plans with the help of a financial planner, you can show how to manage your finances, save on expenses and track your company’s performance. Once your plan is implemented, you can focus on increasing ROI and improving profits.
Your business has unclear goals
What do you want your business to achieve in the next quarter or year? Remember, every business decision must be geared toward your goals, which may include addressing a specific market need in exchange for a significant return on investment. But, it will be really hard to achieve your goals if they are not clearly defined in the beginning. To facilitate your brainstorming, you can enlist the help of a financial planner to create a well-written financial business plan.
Your business must demonstrate its financial viability
No matter what type of business you have, at some point you will need to raise capital. Whether you’re just starting out or looking to scale up, the main requirement that investors or banks often look for before funding a business is your financial plan. The details of how you plan to expand your business, the risks that may be involved, and how you will make a profit can either lead to your plans being approved or rejected. To get the capital you need, you need to create an impressive but realistic business plan with the help of your financial planner.
If you want your business to succeed and ultimately change the industry you cater to, you need to step back and accept that you need help from other people, especially financial experts. Owning and running a business is never an easy task and it is certainly not meant to be done alone. You may still try and reason your way into hiring a financial planner for your business, but is it really worth the risk of ultimately losing your business? You need to take action and you need to do it as soon as possible. Take that step with Joelle Byrne now!
Guest post contributed by Jennifer Watson
