Money is the crux of any business. Investments and ROIs determine the fate of every business. One wrong move here, your dream of building an empire may never come true. One mistake here, and the empire you built with your blood and sweat can crumble to the ground. So you certainly need a plan, more specifically, a financial plan. The right financial plan alone can bridge the gulf between what you want to accomplish and what becomes a reality.
A financial advisor helps you assess the viability of your business model and outline strategies and timelines for your path to profitability. He/she can help you avoid costly mistakes, saving you the trauma of going through painful and unnecessary rites of passage. However, choosing the right match for your business is not an easy task. He/she needs to be trustworthy, experienced and most importantly, smart. So here we have created a list of steps for you to find the right business consultant for you to take this one stress off of your shoulder.
Table of Contents
Understand the type of financial consultant that you need
When it comes to finding a business consultant, you have options from automated investment management services called robo-advisors, to online financial-planning services, to a variety of traditional, in-person specialists. So you need to know what suits your business the best.
- Robo-advisors: These online services select and manage an investment portfolio for you, using computer algorithms. Their primary service is investment management, not financial planning. If you already have an idea about where to invest in and how to save, these can manage your finances and investments for you.
- Online financial planning services: These services are relatively new to the market. They offer investment management alongside virtual financial planning — you can meet with financial advisors by video or phone, and receive financial plans and guidance. They use human advisors for some parts and robo-advisors for some other, depending on your requirements.
- Personal financial advisors: A fee-only certified financial planner gives you a good combination of specialized training and no conflicts of interest. They are costlier than the rest, however, if you need specialized services, or a thorough business plan to be made or reviewed, they are the best way to go.
Search for a financial consultant company with the right specialty
Once you are sure about what kind of financial help you need, look for companies. Before speaking to them in person, check them out online and understand their philosophies to determine which matches your criteria and also how to negotiate their fees. Many consultants have specialties like stock trading, private placements, mutual funds, or insurance. If the firm you’re considering has a niche they focus on, be sure you know what it is and why they excel in that area.
Research each financial advisor you consider
Once you are decided on the company you are hiring, it is important that you select the individual financial advisor. Check their educational background, experience in the industry and individual certifications to learn about their knowledge and competence about finance. Also, speak to them individually to learn about their life experiences and expectations, lifestyle, and values – in general, learn about them on a personal level – to understand whom you will like personally and whose personal life preferences and priorities will suit your needs. As you will need to have personal interactions with them regularly, this part is very important. Additionally, do check if the potential business consultant of yours is properly registered and has a valid license to protect your business from getting into any security trouble later.
Consider both present and future needs
You need to know how your needs may change over time. You may need to look for an advisor to execute trades on your behalf and who would later want to buy permanent insurance. He might also have to manage your account. So find someone trustworthy and competent.
Conduct serious interviews to finalize the business consultant for you
The right business advisor for you needs to have good experience with businesses and not only individuals. Below are some questions listed to help you out to find your suit:
- Their ideal client: This will reveal their experience and expertise in working with a business like yours.
- Their investment philosophy: Find out how your potential advisors’ view the client-centric role. If they are proactive or reactive, if they take responsibility for managing an account or they are just facilitators, and what their philosophy on saving and investing is.
- How they structure their work day: Find out about how your financial advisors’ work. This will tell you about their time of availability, their travelling habits and interests, as well as their idea of work-life balance. You can choose the one which accommodates your business needs the best.
- Ask the person to explain a concept to you: When it comes to hiring a consultant, it is important that they are able to communicate their ideas freely and effectively to you, especially if you are not a financial expert yourself.
- Their knowledge on retirement benefits: This person is the one who is going to plan not only your employee monitoring’ retirement policies but yours too. Learn about their knowledge and experience in the area.
- Their experience/knowledge with estate planning: Like retirement benefits, estate planning for business owners also presents unique challenges, so your business advisor should have deep knowledge about it.
- Their experience/knowledge with succession planning: Let’s face it. You are not going to be able to run your business forever, and you will need to choose the right successor. Your business consultant is the one who will help you to do that, so you need to know about their competence in the matter.
Many things can go wrong in business from a financial perspective. Mismanaging money, cash flow problems, delayed or overpaid vendor accounts can wipe you out of the business world. That’s why finding the perfect financial advisor such as TR Consulting is critical for the long-term financial health of your company. You certainly will not regret your decision of hiring an expert for all your consultant needs.