Did you know that one in three businesses fail within the first year? There are many reasons of course. But one of the biggest issues is a lack of financial planning and sound advice.
Let’s outline the truth about financial advice and how it can benefit your business. Consider how important financial advice is to your success and health. You may not be getting your money’s worth in everything you set out to achieve.
What is Financial Advice?
This may sound like an obvious question, but the answer lies below the surface. Anyone can give financial advice.
But for it to be the best, it should exist on a case-by-case model. That’s because it’s such a unique subject there isn’t a one-size-fits-all approach.
What Types of Financial Advice Can I Expect?
There are several types that exist. Which takes priority depends on your own business structure. But here are some examples of the most important ones that correlate across the board.
Finance management, or financial affairs, involves organizing day-to-day finances for the best efficiency. For example, often finances involve setting up a standing order for our bills. Then, we pay them from a checking account.
These are often automated to ensure we can always pay the bills, even when we don’t have immediate access to them. Other times, you may be dealing with tougher issues that need more time and expertise. These include financial planning or developing a business wealth strategy.
This type of financial advice is often better for businesses that have more options. Or, they may be in a position where they need more help or a larger financial stake. For example, businesses with assets may do better consulting with an investment advisor.
Alternatively, you might find you need a loan to proceed with an investment strategy. In this case, companies such as SBA lenders can take the pressure off you and make sure you’re able to get the right amount you can afford.
Business mentoring involves working with mentors to foresee future goals of the business. This is often one of the more costly types because it requires some personal time spent on the matter. As such, this financial advice requires significant trust between the owner and mentor.
Thus, make sure you know what you’re getting into. It also provides a holistic approach, including elements of running a successful business. This allows a better understanding of the relationship between finances and other areas.
Financial Advice is Worth More Than You Think
Financial advice can be a powerful tool, and it’s not about the money. There are so many moving pieces in running a business. And, sometimes it can be difficult to notice when those elements start to slip out of balance.
The right financial advice can keep you afloat through all the highs and lows. This allows you to draw on your strengths while minimizing your losses.
Keep reading our articles for more weighty financial advice today!