Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
Silver Long-term Trend Analysis - 28th Nov 21
Silver Mining Stocks Fundamentals - 28th Nov 21
Crude Oil Didn’t Like Thanksgiving Turkey This Year - 28th Nov 21
Sheffield First Snow Winter 2021 - Snowballs and Snowmen Fun - 28th Nov 21
Stock Market Investing LESSON - Buying Value - 27th Nov 21
Corsair MP600 NVME M.2 SSD 66% Performance Loss After 6 Months of Use - Benchmark Tests - 27th Nov 21
Stock Maket Trading Lesson - How to REALLY Trade Markets - 26th Nov 21
SILVER Price Trend Analysis - 26th Nov 21
Federal Reserve Asks Americans to Eat Soy “Meat” for Thanksgiving - 26th Nov 21
Is the S&P 500 Topping or Just Consolidating? - 26th Nov 21
Is a Bigger Drop in Gold Price Just Around the Corner? - 26th Nov 21
Financial Stocks ETF Sector XLF Pullback Sets Up A New $43.60 Upside Target - 26th Nov 21
A Couple of Things to Think About Before Buying Shares - 25th Nov 21
UK Best Fixed Rate Tariff Deal is to NOT FIX Gas and Electric Energy Tariffs During Winter 2021-22 - 25th Nov 21
Stock Market Begins it's Year End Seasonal Santa Rally - 24th Nov 21
How Silver Can Conquer $50+ in 2022 - 24th Nov 21
Stock Market Betting on Hawkish Fed - 24th Nov 21
Stock Market Elliott Wave Trend Forecast - 24th Nov 21
Your once-a-year All-Access Financial Markets Analysis Pass - 24th Nov 21
Did Zillow’s $300 million flop prove me wrong? - 24th Nov 21
Now Malaysian Drivers Renew Their Kurnia Car Insurance Online With Fincrew.my - 24th Nov 21
Gold / Silver Ratio - 23rd Nov 21
Stock Market Sentiment Speaks: Can We Get To 5500SPX In 2022? But 4440SPX Comes First - 23rd Nov 21
A Month-to-month breakdown of how Much Money Individuals are Spending on Stocks - 23rd Nov 21
S&P 500: Rallying Tech Stocks vs. Plummeting Oil Stocks - 23rd Nov 21
Like the Latest Bond Flick, the US Dollar Has No Time to Die - 23rd Nov 21
Why BITCOIN NEW ALL TIME HIGH Changes EVERYTHING! - 22nd Nov 21
Cannabis ETF MJ Basing & Volatility Patterns - 22nd Nov 21
The Most Important Lesson Learned from this COVID Pandemic - 22nd Nov 21
Dow Stock Market Trend Analysis - 22nd Nov 21
UK Covid-19 Booster Jabs Moderna, Pfizer Are They Worth the Risk of Side effects, Illness? - 22nd Nov 21
US Dollar vs Yields vs Stock Market Trends - 20th Nov 21
Inflation Risk: Milton Friedman Would Buy Gold Right Now - 20th Nov 21
How to Determine if It’s Time for You to Outsource Your Packaging Requirements to a Contract Packer - 20th Nov 21
2 easy ways to play Facebook’s Metaverse Spending Spree - 20th Nov 21
Stock Market Margin Debt WARNING! - 19th Nov 21
Gold Mid-Tier Stocks Q3’21 Fundamentals - 19th Nov 21
Protect Your Wealth From PERMANENT Transitory Inflation - 19th Nov 21
Investors Expect High Inflation. Golden Inquisition Ahead? - 19th Nov 21
Will the Senate Confirm a Marxist to Oversee the U.S. Currency System? - 19th Nov 21
When Even Stock Market Bears Act Bullishly (What It May Mean) - 19th Nov 21
Chinese People do NOT Eat Dogs Newspeak - 18th Nov 21
CHINOBLE! Evergrande Reality Exposes China Fiction! - 18th Nov 21
Kondratieff Full-Season Stock Market Sector Rotation - 18th Nov 21
What Stock Market Trends Will Drive Through To 2022? - 18th Nov 21
How to Jump Start Your Motherboard Without a Power Button With Just a Screwdriver - 18th Nov 21
Bitcoin & Ethereum 2021 Trend - 18th Nov 21
FREE TRADE How to Get 2 FREE SHARES Fractional Investing Platform and ISA Specs - 18th Nov 21
Inflation Ain’t Transitory – But the Fed’s Credibility Is - 18th Nov 21
The real reason Facebook just went “all in” on the metaverse - 18th Nov 21
Biden Signs a Bill to Revive Infrastructure… and Gold! - 18th Nov 21
Silver vs US Dollar - 17th Nov 21
Silver Supply and Demand Balance - 17th Nov 21
Sentiment Speaks: This Stock Market Makes Absolutely No Sense - 17th Nov 21
Biden Spending to Build Back Stagflation - 17th Nov 21
Meshing Cryptocurrency Wealth Generation With Global Fiat Money Demise - 17th Nov 21
Dow Stock Market Trend Forecast Into Mid 2022 - 16th Nov 21
Stock Market Minor Cycle Correcting - 16th Nov 21
The INFLATION MEGA-TREND - Ripples of Deflation on an Ocean of Inflation! - 16th Nov 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Five reasons why a financial advisor can make a big difference to your small business

Companies / SME Feb 15, 2021 - 09:51 AM GMT

By: Sumeet_Manhas

Companies

As a small business owner, accurate financial planning and strategic budgeting will help you spend your investments wisely. And spending wisely will help you achieve the growth you want for your company in the long run. Therefore, hiring a financial advisor can be invaluable. But many people have been misled when it comes to financial advisors. They may believe that advisors charge huge fees and may even have ruled out hiring one to save money – which is counterintuitive given the savings that financial advisors can achieve for you. It’s especially easy to rule out hiring a financial advisor if you think you can manage your finances effectively alone. But this is unlikely. We don’t fix our own electrical devices, make our own clothes, or build our own computers – yet many of us do take on our own finances.

Financial advisors have a wealth of experience and knowledge that the rest of us don’t have. That’s why hiring a professional allows you peace of mind while you get the most out of your advisor’s knowledge and enjoy complete financial protection. If one thing’s for certain, it’s the fact that hiring the right person will save you money. In fact, the International Longevity Centre (ILC) think-tank concludes that those who seek professional financial advice save an average of £40,000 in total, compared to those who don’t take financial advice at all.


Here, private equity and distressed M&A investor Scott Dylan explores exactly what financial advisors do for their clients, why you need one for your small business, and how to choose the right finance professional for your business.

What Financial Advisors Do

The term ‘financial advisor’ encompasses professionals who provide a range of financial services. Each of these professionals will have a different background and/or education that qualifies them to provide services in their financial niche.

All financial advisors do have one thing in common though. They’re all there to help you make the most of your initial investment – a capital injection that you must spend wisely to kickstart your success journey. Financial advisors can analyse the viability of your business model and project how to best grow your business. They’ll highlight your risk exposure and cover scenarios you may not even have thought about.

There are two main types of financial advisor in the UK: independent and restricted. Independent financial advisors offer a full range of financial products and providers. They can recommend a range of investment products to meet your goals and should offer unbiased advice pertaining to all relevant firms in the market.

On the other hand, restricted financial advisors specialise in a small selection of products and providers. They only recommend certain products/providers and should clearly explain the nature of their restriction. For example, they may only work with one product provider or with a small number of product providers. Alternatively, the financial advisor may focus on one market, such as pensions, and only advise on products in the pensions sector.

Either way, all financial advisors must achieve at least a Level 4 national qualification and attain a Statement of Professional Standing (SPS) to certify them in the financial arena. A SPS is a code of ethics that shows a financial advisor has completed a minimum of 35 hours’ professional training each year. Advisors must renew their SPS’ every year, so check your advisor’s is up to date.

When looking at your options, it’s important to hire someone who offers the services you need. You should also be able to see yourself building a healthy working relationship with this person. They must be trustworthy, familiar with your industry, and understand your business’ financial needs. Plus, they should be regulated by the Financial Conduct Authority (FCA), which protects clients against harm that can arise from poor conduct in the finance sector.

Why You Need a Financial Advisor

Knowing where to invest your funds is crucial when running a small business. It’s easy to over- or under-spend if you don’t have guidance from a professional. So, without further ado, here are Scott’s five top reasons why you need a financial advisor.

1. Financial Advisors Help in Multiple Ways

It’s a common misconception that financial advisors exist only to invest your money. It’s true that this is one of their responsibilities, but they do so much more. Not only can a financial advisor help you to invest advantageously, but they can also help you with capital allocation, cost-cutting, and sales growth.

Not only can financial advisors offer key guidance when it comes to business acquisitions – whether you’re selling or buying – but they can also:

  • Rebalance your investments – you might have a blend of cash, bonds, and mutual funds in your investment portfolio. But you’ll probably want to rebalance the ratios of these now and again to protect your wealth. A financial advisor will be able to advise you on how and when to adjust these ratios.
  • Tax planning – tax can be complicated, especially when it comes to understanding the tax laws that apply to your financial situation and identifying which investments will be taxed most heavily. A financial advisor will help you navigate which of your assets have the biggest tax implications, when taxes are due, and how much you’ll owe.
  • Estate planning – as you build your wealth, you’ll need to decide who will receive your estate. Your financial advisor can collaborate with an estate-planning solicitor to work out how to distribute your assets according to your wishes.
  • Long-term care planning – a financial advisor can help you learn how to protect your wealth should you ever require long-term medical care, which can quickly burn through your pension fund and other savings.
  • Spending strategies – when you retire, you’ll need to know which of your investments require annual minimum withdrawals and which income streams you should use first. A financial advisor can help you draw up a plan for where and when you should withdraw funds when you retire.

2. Financial Advisors Set You Up for the Long Run

Financial advisors can help you find the answers to the questions you don’t want to get wrong. How much should you save for retirement? How should you adapt your investments portfolio over the upcoming years? How can you make up for lost time if you started investing later than you would have liked? Get these questions right, and you’ll be on track for financial success for years to come.

3. Financial Advisors Offer a Valuable External Perspective

Even if you have a solid understanding of finances yourself, it’s always best to get a second opinion. Doctors don’t diagnose themselves. Dentists don’t remove their own teeth. Hairstylists don’t cut their own hair. Pretty much any expert seeks consultations from other professionals in their field. We all have blind spots when we’re personally invested in our businesses, projects, and plans. These blind spots can lead to huge mistakes in financial planning. Even the best need outside advice. No matter how strong your financial ability, an advisor with an outside perspective will be able to offer valuable assistance.

4. Selling Up? Financial Advisors Can Help You Close a Great Deal

If you’re thinking about selling your business, choosing the right financial advisor can help you close a successful sale. Pick an inexperienced advisor, and you might not sell your business for as much as its worth. Therefore, it’s usually a good idea to opt for a business broker or corporate finance adviser. These financial advisors can help you with credible sales documents; researching, identifying, and vetting buyers; and negotiating a great sale on your behalf. When selling up, the cost of a financial advisor should soon pay for itself.

5. Financial Advisors Reassure You When Stocks Fall

Investments require continuous monitoring, and you may have to act quickly when the stock market takes a large drop. An economic crisis can leave you tearing your hair out, but a financial professional can advise you accordingly and give you peace of mind over how to protect your assets in any scenario. They’ll know when to leave your investments alone, when to rebalance, and when to liquidate.

How To Choose Your Financial Advisor

It’s natural to feel unsure how to approach and choose a financial advisor, especially if you’re not sure which questions to ask. These are some great questions to get you started.

  • Which financial services do you provide?
  • What are the smallest and biggest portfolios that you’ve worked on?
  • What is your pricing structure? Do you offer different services?
  • Tell me about your educational background. Which certifications do you have?
  • How long have you been a financial advisor?
  • Could you provide me with contact information for three client references?
  • How often would you evaluate my financial situation and update forecasts?

Arranging Appointments with Your Financial Advisor

Once you’ve chosen your financial advisor, you’ll arrange another appointment to discuss your financial situation and goals. During this appointment, your financial advisor will put together a plan to manage your finances effectively.

Scott recommends meeting your financial advisor at least twice a year to discuss your portfolio and any changes you’d like to make. You should also meet your advisor whenever you find yourself in a situation that requires financial navigation.

Hiring a Financial Advisor

It’s usually best to hire a financial advisor when you start building your company’s wealth through investing. Keep in mind that when this time comes, the only person who can decide to seek financial assistance is you.

You can get in touch with Scott Dylan’s capital investment organisation Fresh Thinking Group to learn more about protecting your wealth and investing strategically to grow your business.

About Scott Dylan

Scott Dylan has channelled his impressive background in investments into his role as the managing partner of Fresh Thinking Group (FTG), which prides itself on financially revitalising companies.

As FTG’s CEO and group partner, Scott helps start-ups, businesses looking to expand, and businesses in need of capital injections to streamline their finances, scale their outputs, and redefine their positions in digital and logistics markets. He has achieved significant results for each of FTG’s acquisitions, which include Laundrapp, Cuhu, and GLB Transport, to name a few.

By Sumeet Manhas

© 2021 Copyright Sumeet Manhas - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in