*Sponsored by Small Business First
I bet when you decided to start your own business, it wasn’t because of a burning passion to craft cash flow forecasts, business processes and investment strategies. We start businesses because we’re passionate about the craft; that’s why we get advice from experts in all sorts of areas. Accounts and bookkeepers handle the payroll, lawyers make sure we don’t get into trouble, and we get brokers for insurance cover.
But the key piece of advice so many businesses overlook is financial advice. The number one reason small businesses fail is from a failure to plan. That’s according to Angus Woods, founder of Adviser Ratings, who reckons only 25 per cent of small businesses engage a financial adviser for long-term business and personal goals.
Business owners should be able to focus on what they do well, be it making candles, fixing cars or cutting hair. Budgeting, forecasting, and knowing how to structure a business isn’t something you need to be an expert at for success. This is where a financial adviser can help.
While an accountant or bookkeeper manages the day-to-day finances, an adviser has a firm eye on the future. They’re the ones making sure your entire business is set up to maximise revenue and minimise costs, from technology through to super.
More and more small businesses are engaging advisers to manage their affairs these days, but the number is still low. Maybe you think you just don’t have time to add another person into your business management, or perhaps cost is an issue for you. Well if the adviser is doing their job, they should be helping you free up both your time, and expenses.
It’s important of course to find an adviser who is a good fit for you and your business. Roughly 35 per cent of financial advisers have small business experience, so make sure you engage someone who has proven experience working with businesses similar to your own.
The most critical thing to have in an adviser is a comfortable relationship. “Think of an adviser like your financial GP; you have to be honest with them,” says Woods. They will know secrets not even your family knows, so you must be comfortable for the relationship to work.
FREE ADVICE FOR SMALL BUSINESSES
Small Business First has entered into a partnership with Adviser Ratings to provide expert advice to its small business members from qualified financial advisers through the Ask an Expert feature on Small Business First.
Simply post your question on smallbusinessfirst.com.au and it will be answered within 48 hours by financial advisers who specialise in financial advice for small business. In addition, members will be able to access a free initial consultation worth $600 when the service is launched in December.
Joining smallbusinessfirst.com.au is free and includes exclusive deals and incredible offers to help you save money. Small Business First and Fairfax Media may earn a commission on deals through smallbusinessfirst.com.au.
Readers should shop around for the best deal to suit their needs. Pinstripe Media, David Koch's family business, is a founder of Small Business First.