The Wealthtender Guide to

Financial Advisors for Business Owners

Can a Financial Advisor Who Works with Business Owners Help You Succeed?

Are you a business owner? While you may find a great financial advisor to work with through the referral of an acquaintance or whose office you drive by on your daily commute, it’s important to consider several factors to improve your odds of hiring the best financial advisor for your individual needs.

As a business owner, you may decide the best financial advisor for you is one who specializes in understanding the unique financial planning challenges and opportunities commonly faced by entrepreneurs. These specialist financial advisors may hold credentials that demonstrate their expertise along with considerable experience working with business owners that could benefit your own financial planning needs.

This guide will help you discover financial advisors who specialize in working with business owners just like you. And read on to learn the many ways a small business financial advisor can help you succeed and maybe even help you put a little more life in your work/life balance.

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7 Ways Your Small Business May Benefit from a Financial Advisor

As a small business owner, you always have a million things on your mind. In the beginning, you’re trying to figure out how to get your business started. Then it’s on to how do you get new clients, then keep those clients, all in order to be able to grow your business. 

It’s safe to assume you love what your business does and want to continue to focus on that. There’s not always time to think about other things. But some of those other things are very important too, and can actually help your business. 

A financial advisor who specializes in working with business owners can help you out with a lot of things that are complicated, confusing, and out of your comfort zone. No matter what stage of business you’re in, it makes sense to surround yourself with professionals who are experts in what you’re not, so you can succeed. 

“A financial advisor can help you discover ways to use your business to grow your wealth, both in and out of the business,” said Cady North, Founder and CEO of North Financial Advisors.  “For instance, making sure you get paid what you’re worth, ensuring you have a sustainable business model, and taking advantage of retirement savings incentives.”  

So let’s take a look at seven ways a small business financial advisor can help you out. 

1. Financial Planning for Your Business

As a small business owner or self-employed person, you don’t have to deal with the big company problems or corporate bureaucracy, which is very appealing. But it also means you don’t have access to many of the big company perks. For example, without employee benefits like a 401(k) retirement plan with matching contributions, a health savings account, basic insurance, and/or an employee stock purchase plan, you are solely responsible for accumulating your retirement savings as a small business owner. 

That’s another overwhelming task that can get easily pushed aside, the ‘deal with it later’ mentality. With investing and saving for your retirement, the earlier you start and the longer you invest, the more benefit you actually see. A business financial advisor can help get you started with financial planning for your business, keep you on track, remind you of the importance, and always have your financial future as a priority. This lets you prioritize your business and how to make it succeed. 

2. Cash Flow Management 

What do you do with the money you or your business is making? Is it being invested or is it just accumulating in a low-interest savings/checking account because you don’t know what to do with it? 

Just like for an individual, the money your business makes doesn’t have to stop making you money once you get paid. By investing the money your business earns strategically, you can continue to earn interest. This can help you afford expenses for your business, training or software, paying taxes or memberships, really anything you can think of. The only people I know who are excited around tax time are the accountants eager to do your taxes. By accumulating, saving, and earning interest, you can make those times when money is tight more manageable. 

3. Insurance Planning for Business Owners

I’m sure you sighed when you read the word insurance, but a good wealth management plan needs to incorporate insurance. We could do all of the planning in the world, create a real work of art on a spreadsheet, and then something happens that causes you to not be able to work. Then you have to use all of your savings to keep yourself afloat until you can earn an income again. So the plan becomes completely irrelevant. 

About 45% of us will develop cancer at some point in life, that’s a scary statistic. With cancer comes additional costs, such as medication and treatments, not to mention the stress that comes with it. You’re probably not going to be able to work as much or as hard as you did in the past. 

Insurance is definitely something people overlook or try to risk going without to save costs. Insurance is cheapest earlier on. Some insurance plans offer features like the return of premium, meaning if you don’t need the benefits you get your money back. A good business financial advisor can teach you about the types of insurance you need to consider, make sure you have a plan that meets your exact needs, and is reviewed periodically as your situation changes. Policies with features addressing critical illness, disability, business overhead expenses, and key person insurance should be considered. 

4. Retaining Employees 

Job markets are very competitive. A lot of times it comes down to the specific work environment and perks of working for an employer that attracts and retains employees. Everyone needs to have a good financial plan, and that includes investments and insurance. Being able to recommend a financial advisor knowledgeable in your business and who can work with your employees is a big perk, which also means employees can focus more on their primary job responsibilities.

Money concerns are among the most common fears that keep people awake at night and distract them. Taking care of your employees is not only good for them, but it’s good for you and your business. 

5. Legacy Planning for Business Owners

What happens to your business when you retire, or if something bad were to happen? Do you have a successor, or an exit plan to sell your business? Are you aware of the potential tax consequences, difficulty with getting fair value, or complications that come along with passing on your business? 

A financial advisor who specializes in exit planning for business owners can help make those decisions easier for you and your family. Obviously, you want what is best for you and your family. But it’s always easy to push things off when they aren’t of immediate concern. Financial advisors’ priorities are always protecting you and your family’s wealth. Even if it’s not always on your radar because you’re managing a business, it will be on their mind. 

6. When the Going Gets Tough

Especially in response to the COVID-19 pandemic, we’ve seen how even thriving businesses can experience sudden and devastating interruptions to revenues and cash flow.

In times like these, the help of a financial advisor or business consultant with turnaround experience can prove invaluable to help navigate discussions with creditors, and possibly even a bankruptcy restructuring. For example, the Small Business Reorganization Act of 2019 offers new and more favorable options for business owners facing challenging times.

“The new law allows business owners to continue to operate and keep their firms, and reorganize their debts,” said James Sivco, founder of Molten Layer, an advisory firm based in Houston, Texas. “This is a much more business owner-friendly process with much larger impacts.”

7. Time 

When you combine everything together, a small business financial advisor can save you a lot of time and effort. A financial advisor should be looked at as an asset, not an expense. Financial advisors can bring a lot of value, not only on the business side but also on the personal side. 

Just like a mechanic, dentist, or doctor, it’s important to hire a financial advisor who is a specialist. A good advisor who specializes in working with business owners can focus on what they do best, so you can focus on what you do best, successfully managing and running your business.

How To Find The Best Financial Advisors for Business Owners

The best financial advisor for you may be one who specializes in understanding the unique financial planning challenges and opportunities commonly faced by entrepreneurs. These specialist business financial advisors often hold credentials like the Certified Exit Planning Advisor (CEPA) designation that demonstrate their expertise along with considerable experience working with business owners that could benefit your own financial planning needs.

Because many business financial advisors can work with you online, you’re not limited to hiring a financial advisor in your neighborhood when the best financial advisor for you may live hundreds of miles away.

In other words, whether you choose to hire a financial advisor who lives near or far, it may be most important to hire a financial advisor who truly understands your individual needs based on their education, experience, and commitment to helping people just like you.

Simply scroll down to get to know financial advisors featured on Wealthtender who offer financial planning services to entrepreneurs and business owners. Click to view their full profile to learn more about each financial advisor and if they are a good fit for your unique needs.

Are You a Financial Advisor who Serves Business Owners?

👋 Hi there! We’re excited to help more people understand the benefits of working with financial advisors who specialize in working with business owners. And we want to help connect people to the best financial advisors for their unique needs. If you work with business owners, we encourage you to join our growing community of financial advisors featured on Wealthtender so we can add you to this guide soon. Click here to learn more and get started.

About the Author
Derek Condon

About the Author

Derek Condon

Winnipeg-based Financial Advisor focusing on investments, financial planning, and mortgages. I prioritize education, because I believe the more we know, the more we all benefit. It allows me to help people make the most of their financial future. 

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