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Top 4 Signs Your Small Business is Ready to Hire a Financial Advisor

Posted by Kanika Sinha

December 8, 2023

Learn when to leverage the financial expertise of external professionals.

Most small business owners prefer handling their core business and all associated critical tasks. That could be for several reasons varying from lack of a designated team to lack of confidence in others. 

Sometimes, financial planning and investment management are your key strengths, and you prefer doing it yourself. But as the business grows, your financial situation becomes more complex. 

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To increase your business further, you need help optimizing your savings, taxes, financing strategies, and investment options. 

As growth and strategy require more thought, it is often best to bring in an outside professional to look after financial stability.

Here are four telltale signs that it’s time to partner with a financial advisor.

1. Seek operational support

As a business owner, you have your strengths and duties. However, you may need outside support to devise operational strategies to maintain profitability.

How a business financial advisor can help you:

  • Manage the cyclicality of operations to ensure sufficient cash flow.
  • Review your company’s financial statements and create a roadmap to improve profitability and drive efficient day-to-day processes. 
  • Identify your business’s unique challenges and opportunities to offer customized solutions.
  • Provide valuable insights into your organization’s financial health, enabling effective resource allocation and optimal decision-making.

2. Develop a retirement plan for your business

Establishing and installing an employee retirement plan involves reporting, compliance, and management requirements.

How a business financial advisor can help you:

  • Select a retirement plan that meets your small business’s and your employees’ needs.
  • Plan and manage the project’s many administrative burdens.
  • Mitigate any risk you might ensue.
  • Monitor the performance of your retirement benefits provider. 
  • Educate your employees on the benefits of participating in the plan and guide them to ensure they are on track to meet their retirement goals. 
Talk to us about how Escalon’s essential business services can help your firm access financial expertise. 

3. Risk management

Entrepreneurs face multiple risks, which are financial, environmental, reputational, political, and economic. Safeguarding against these potential challenges requires forethought and planning.

How a business financial advisor can help you:

  • Establish safety nets and mitigate the financial impact of risks with insurance coverage.
  • Utilize proactive risk management strategies, including contingency planning, diversification, or hedging techniques. 
  • Protect your organization’s financial stability and minimize the impact of adverse events.

4. Implement succession and estate planning strategies

Planning for the future, whether through succession or estate planning, involves complexities, requiring knowledge and experience with different laws.

How a business financial advisor can help you:

  • Create a comprehensive succession plan to safeguard the financial health of your business.
  • Map out structuring and financing options to facilitate the succession-driven exit transaction.
  • Create an effective estate plan to help transfer assets seamlessly to your heirs, preventing unnecessary conflicts.
  • Recommend and oversee tax-efficient gifting strategies for passing down assets or a business to your heirs.

The final word

Regardless of where you are in your entrepreneurial journey, partnering with a small business financial advisor is essential. They can provide knowledge and perspective to help propel your business to the next level.

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Want to know more about finance and accounting? Since 2006, Escalon has helped thousands of startups get off the ground with our back-office solutions for accounting, bookkeeping, taxes, HR, payroll, insurance, and recruiting — and we can help yours, too. Talk to an expert today. 

This material has been prepared for informational purposes only. Escalon and its affiliates are not providing tax, legal or accounting advice in this article. If you would like to engage with Escalon, please contact us here.


Kanika Sinha
Kanika Sinha

Kanika is an enthusiastic content writer who craves to push the boundaries and explore uncharted territories. With her exceptional writing skills and in-depth knowledge of business-to-business dynamics, she creates compelling narratives that help businesses achieve tangible ROI. When not hunched over the keyboard, you can find her sweating it out in the gym, or indulging in a marathon of adorable movies with her young son.

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