Financial advice is crucial for any business

If you’re just an average person trying to stick to your budget and make ends meet, then you might not consider using a financial advisor. Most individuals assume that they can handle their finances themselves, which is probably why 62% of adults don’t use a professional for their financial planning needs.

While the standard consumer will always have the option to “go it alone” with their financial decisions, things aren’t so cut and dried for businesses. The truth is, if you don’t have someone to help you make the most of your numbers when you’re launching your own company, you could be missing out on some serious revenue opportunities.

Businesses need financial support

When you first launch your new company and develop a business plan to go with it, you’ll find that finances play a huge part in everything you do. Countless start-ups fail within the first year simply because they don’t have a solid enough plan in place to ensure ongoing cash flow. Even if you think that you have enough funding to find your feet during those initial months, you’ll still need support to keep you going along the right track as your organisation grows.

Experts in business development around the world suggest that just as entrepreneurs need to frequently update their business plan to stay ahead of the curve, they also need to keep their eye on the prize with their financial reports and predictions too. Knowing when to seek financial advice regarding an important business decision can be the difference between success and failure for many growing companies. Here are just some of the biggest areas where businesses may need financial support.

  1. Assistance with insurance

The UK’s “Fiduciary rule” forces today’s financial analysts to put the needs of your company ahead of their own. That is an important point to be aware of, as investors acting on the advice of financial advisors who aren’t governed by the fiduciary rule can lose a lot of money.

On the other hand, working with a reputable financial advisor can save companies a significant amount of money. No matter what the regulations around customer service might say, the truth is that insurance companies are always going to look for ways to make their clients pay as much as possible, for as little cover as they can give. Financial advisors help to ensure that you don’t pay over the odds by failing to read the small print.

  1. Dealing with debt

Debt is another common concern for people growing a business for the first time. The unfortunate truth is that you’re likely to have some debt to handle before you make a profit as an entrepreneur. Even the best plans can’t always prepare you for problems with the economy, and if your business runs into trouble with money, you’ll need advice on how to access loans and support.

It shouldn’t happen now, but many loan agreements of the past were sold with repayment protection insurance cover included (extra cost) whether the client needed the cover or not. That so called PPI misselling scandal affected thousands of customers of numerous financial institutions, including the UK’s banks. Financial advice at can help modern businesses avoid wasting cash on PPI support that they don’t need, want or ask for and to claim compensation for premiums paid unnecessarily. By ensuring that you’re not paying for something you don’t need in the future, good financial advice can help you to regain control of your cash flow and manage debt with as little pain as possible. That means that you’ll be well-positioned to get back into a situation where you’re earning more than you’re spending.

  1. Mergers and investment

Staying ahead of cash problems when you first launch your business isn’t just about avoiding over-spending on your credit card, or making sure that you have the right capital investments. As your business begins to grow, you may decide to acquire shares in another brand. Some organizations even begin to consider takeovers. In such circumstances, getting the right advice ensures that you have a much clearer idea of the value of the entity you’re buying, and how that value might change over time.

Investment advice is also critical when you’re managing your capital reserves as a growing company.

The importance of financial advice

The nature of a successful business means that its financial circumstances rarely stay the same for long. Even if your business appears to be in a solid place, for now, there’s a good chance that you’ll need additional support to avoid falling into debt later down the line. Advice from an independent financial analyst helps brands to identify any potential pitfalls on their business roadmap and avoid the stress of lost opportunities.

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