Small businesses have new reasons to consider the value of financial planning in working towards their business goals. Many owners are "bandonneurs" (a French word for "jack of all trades") who may successfully wear many hats, but trying a DIY strategy for your financial planning may be a challenge even for the most diligent entrepreneurs.
During National Financial Planning Month, consider why a financial professional might be of value in assisting you with steering your business toward long-term effectiveness.
Experienced Financial Guidance
A financial professional has vast experience in many financial issues to coach you through circumstances, such as how to use money day-to-day, how to manage complex concepts such as cash flow, how to take advantage of tax structures, and much more.
● Cash Flow Management: Keeping tabs on cash flow may help you to have enough to pay operating expenses, expand into growth opportunities, and prepare to weather an economic crisis.
● Tax Optimization: Tax laws are complex. Trying to figure them out may be a daunting task. A financial professional along with your tax advisor may help you develop a tax-efficient strategy to manage your taxes and improve your after-tax income.
● Business Expansion: If you want to expand your product offerings, enter new markets, or grow your staff, a financial professional may help you.
● Risk Management: Identifying risks may help to mitigate them. A financial professional could identify potential risks. Then, recommend proper insurance coverage and contingency planning to help preserve your business's longevity.
● Investment Advice. It's also important to look for clever investments to grow your business and maintain your presence in the market. Whether it’s buying new equipment or buying the neighboring land for expansion, a financial professional may help you figure out a strategy for improving your return on investment (ROI).
Decision-Making
Running a business could give you tunnel vision. A financial professional operates at a distance, providing helpful support that could enable you to make choices based on data rather than emotion.
Succession and Transition Planning
Another important consideration is succession planning—a plan to hand over your business to the next generation. Another option is to make a plan to sell to a competitor who wants to buy you out. A financial professional may help you prepare a succession plan and consider the benefits and drawbacks of any buyout offers you may receive.
In Closing
Does your business have a financial planning challenge? By partnering with a financial professional, you gain helpful financial planning guidance, investment advice, and support for financial discipline, and you may also enjoy an overall enhancement to your business's financial management. Financial planning advice is no longer a luxury for business owners—it’s an indispensable tool for navigating the complex financial challenges you face.
Important Disclosures:
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
This article was prepared by WriterAccess.
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