It is a well known fact that over 50% of new businesses fail within their first 3 years, a worrying figure for any new business owner to think about. The reasons for the downfall of so many new businesses varies greatly but one of the key areas which usually contributes to the failure of a business is financial mis-management. This comes in many forms, seeking growth too early, borrowing more than a business can afford or investing too heavily are just some examples of how the finances can catch up with a business and send them into liquidation.

In order for your business to avoid the woes that so many before have fallen foul to, a financial advisor is something that is highly recommended. I spoke to financial advisor Keith Springer around some of the reasons why your business needs to use a financial advisor.

More Time For You

As a business leader, your job is to run the business on the whole and if you find yourself dealing in the financial side of things then all you are doing is taking yourself away from the day-to-day running of your company. If you are a restaurateur for example, then your job is to see that the restaurant runs smoothly, the food is high quality and that the customers are happy. Having a financial advisor in place will allow you to get back to what you do best, running your company.

Ensuring Everything is Done Right

Unless you have studies finance for many years and specialize in the field, something which most business owners have not done, then you can easily make mistakes when it comes to looking after the company’s finances. Financial advisors are experts in their field and understand all aspects of the accounting and the balance sheet of your company. Hiring a professional to look after your company’s finances will ensure that everything is above board.

Emotion Free Decisions

Making financially-based decisions for your business can be tough because of your emotional involvement in the business. A financial advisor on the other hand will be able to offer you advice which is simply based on facts. An advisor is only concerned about the numbers and as such they can give you clear and sensible advice about any decisions which will affect the finances of the business.

Contacts

When you hire a financial advisor, you will also get access to their ‘little black book’ of contacts, most advisors have worked with many financial institutions and key individuals throughout their careers and will have lots of contacts to call on when you need help. Say for example you are looking for a small business loan to push for a little growth, a financial advisor can put you in touch with investors who will look at you more favorably as a result of their affiliation with you.

If you don’t have a financial advisor or have never spoken with one about your business then it is well worth doing in order to ensure that your company’s financial health is in good shape.