According to the Small Business Administration (SBA), more than 600,000 small businesses are opened around the country every year. Unfortunately, while this may seem like a lot, 1 in 12 small businesses closes each year.
While many businesses close for personal reasons, others close because the owner or operator doesn’t have a strong financial plan to help ensure the longevity of their endeavor, says CEO Frederick Baerenz of AOG Wealth Management.
That’s why small business owners must ensure they have qualified advisors as part of their team. According to Frederick Baerenz, a financial advisor can help you:
1. Manage your small business needs
A financial advisor can help you manage those small business questions you may not have even thought of yet. They can look at your business plan and analysis, help you with your financial statements and income tax planning, asses your risk management, and conduct a review of all of your financial contracts, amongst other things. They become your go-to for any financial challenge or question your business may encounter.
2. Transfer your business to a new owner
Maybe you have been lucky enough to sell your business, or perhaps you’re approaching retirement, but when you want to transfer your business to another person, a financial advisor can help ensure that you are making the right decisions along the way — and that it’s done correctly.
3. Take care of your personal finances
When you are starting a business, all of your attention will be focused on that business, its strategy, its challenges, and its finances. You won’t have the time or energy to focus on your personal financial needs. Having a financial advisor on your team will ensure your retirement savings are taken care of and your estate is managed. This is especially important when you get married or start a family.
Once you know what a financial advisor can do for your business, you are sure to understand the importance of bringing one onto your team.