When it comes to your business especially if you are just setting out then you would, for sure, not like to lose the track, given the fact, that about 90% of the start-ups fail in a year because of lack of a strong plan in place for effective implementation of strategies besides lacking in expert financial advice so as to manage with whatever little funds they may have initially. According to industry leaders such as Arnulfo Medina Acosta and others, most of the startups fail because of the temptation to learn solely by making mistakes even if, they can’t afford to make mistakes initially as learning by making mistakes could mean landing in a situation; where they might not have any option other than dropping the idea of any start-up at all and this is where hiring a competent business advisor comes into the picture. A business financial advisor is a professional, who with his experience of different business industries and knowledge of KPIs helps you achieve what you want. He is the individual, who, in spite of an outsider, plays an important role in accelerating and improving your business success.
Below are some of the important things that he can do for you and why you should hire him in the first place.
- Helping with Your Finances: For the smooth functioning of your business and your personal life, you have to draw a line between your personal expenses and business expenses. He is the individual who helps you manage your finances with his insights into the most rewarding returns or profitable ventures that are worthwhile to spend money. It is not unlikely of the new small business owners to get confused, when it comes to financial matters as they are tempted to try everything, big or small with ideas having little or no viability. A right advisor knows what strategy suits best for your business. “The idea of hiring him becomes all the more important as time and money can be easily equated when it comes to business, hence a right individual means saving you a lot of time and focusing more on your core area”, as simply put by Acosta.
- Helps in Managing Taxable Income: As you make profits in the business, the more you are liable to pay taxes. Hence, he helps you consistently managing your taxable income in different conditions.
- Insurance: Like in any other line of work, the chances of happening anything unfortunate in business can never be ruled out as well. It is easy to guess situations turning worst anytime such as disrupted operations, loss of an employee, emergencies like fire and vandalism, etc. Hence, to safeguard your business in the event of untoward incidents you must hire him as he knows the best about different kinds of insurance and protection plans and what can work best for you.
- Handing Over Your Business: This is an important phase in your life because you would probably want to hand it over to someone; you can trust, maybe your family member. He is the person, who comes up with the most effective strategies for either selling your business or handing it over to someone if you never liked the idea of selling it in the first place.
Conclusion: A business advisor is an individual hired by the companies to accelerate their progress by implementing effective strategies. He can be helpful in many ways such as helping with finances, managing taxable income, insurance, and handing over the business to a family member. Some of the prominent business consultants such as Arny Acosta advocate the idea of a plan in place before setting out for any business.