Do Small Business Owners Need a Financial Advisor?

In short, yes. Small business owners can greatly benefit from working with a financial advisor. As a small business owner, you’re probably used to wearing many hats and figuring things out for yourself. But unless you have a background in the finance, having an expert to manage your small business finances should definitely be considered.

According to a survey conducted by Manta, a business directory website, 34% of the 1,960 small business owners surveyed said they didn’t have a retirement savings plan in place. While hiring a financial advisor for your small business does require an upfront investment, that money might be worth it to set up a retirement plan, improve your business’s financial health, and much more.

Let’s go over some of the main benefits of hiring a financial advisor for your small business.

Help You Get Organized

A financial advisor can help you get organized by separating your personal and business assets and liabilities. Once these outlays become intertwined, it becomes more difficult to manage your business’s cash flow, payroll, and taxes. This can become a problem if your business’s financial performance struggles because your personal assets and credit
could be in danger. Especially if your business is incorporated as a C Corp, S Corp, or LLC, you’ll want to be protected from liability related to your company.

Plan Your Personal Retirement

It’s only natural for small business owners to want to put everything they have into their business, including all their money. However, investing solely in your business is an unwise investment strategy. A financial advisor for a small business will ensure that you not only leverage your business to plan your personal retirement, but also diversify your
portfolio to manage risk.
As your small business grows, your financial advisor can help you decide how to invest the extra capital.

Help Transition Your Business

You may know your small business better than anyone else, but that doesn’t mean you can handle a business transition. Financial advisors have experience in business valuations, estate planning, succession planning, investment management, and taxes, which make them experts at dealing with business sales and mergers. Transitions can be
emotionally challenging. Having an objective expert there to map out your transition plan can ensure the process goes smoothly.

Help With Employee Retirement Plans

Financial advisors help your small business take advantage of employer retirement plans that benefit both you and your employees. This is a great way to jump-start your savings and help your employees get on track for retirement as well. Retirement plans also benefit from tax-deferred growth on earnings for employees and tax-deductible employer
contributions for owners. Not only will you give your compounding interest, dividends, and capital gains a chance to grow over time, but your employees will be happy to stay with a company that offers these benefits.

Solutions for Employee Retention

Your financial advisor also has experience working with other small businesses, so they know how successful organizations are run. They also know that employee retention is very important to a small business’s success and can help you decide the best benefits to offer your employees. This way, you can keep your expenses down and keep the
morale up within your organization.

Would you like to learn more about how IronOak Wealth can help you get started with a financial advisor for your small business?

Contact IronOak Wealth to learn more about how we can help you get
started with a financial advisor for your small business.

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