Hiring a financial advisor for your business is a wise move for your business, especially at the moment when great financial management is more important than ever, given the recession. But with so many financial advisors out there, how do you know which one is right for your business? Here are five top tips to help you choose a financial advisor who will transform your business and ensure that you achieve your goals.
1. Check their credentials
The first step is to check that your potential financial advisor is qualified and credentialed. There are many financial advisors who are not qualified, so this is an important step.
Some financial advisors may have a degree in finance or accounting, while others may be certified financial planners. Make sure you check their credentials to ensure they are qualified and actually know what they’re talking about.
Unfortunately, just about anyone can get online and claim to be a financial advisor, but not everyone has the qualifications to back it up!
2. Social Proof
Reviews and testimonials from other happy clients are a great way to gauge whether or not a financial advisor is worth working with.
Look for social proof in the form of positive reviews on their website, or see if you can find any testimonials from other businesses they have worked with. Don’t be afraid to contact said businesses to ensure that the reviews are genuine. This will help you get a feel for whether or not they are reputable and actually deliver on their promises.
3. Free Consultation
Most good financial advisors will be more than happy to offer a free consultation. This doesn’t just benefit you; a good financial advisor won’t take on a client if they don’t feel that they are the right fit. Be wary of anyone who wants to work with you without even speaking to you first.
During the consultation, be sure to ask plenty of questions and get a feel for their financial planning process. This is your chance to really get to know them and decide if they are the right fit for your business.
4. Make Sure They’re a Specialist
Working with a specialist has huge benefits for your business. They will have a wealth of experience and knowledge in their specific area, which means they can provide you with tailored advice that is relevant to your business.
A specialist will also help you to benchmark your business and understand how you’re faring in the context of your industry. Metrics such as costs, revenue and profit margins vary hugely from industry to industry. What might be a poor profit margin for one industry could be a big success for another sector, and it’s important to work with a financial advisor who understands this. Otherwise, you could end up making decisions based on inaccurate information, or losing confidence because you think your business is performing worse than it actually is.
5. Chemistry Matters
It’s important to like and trust your financial advisor. After all, you’ll be working with them closely and entrusting them with sensitive information about your business.
You should feel comfortable communicating openly with your financial advisor, and you should feel confident in their ability to help you achieve your goals. If you don’t gel with them, it’s probably not going to work out!
Choosing the right financial advisor for your business is critical, and it can be difficult to know where to start. By following these five top tips, you’ll be well on your way to finding a financial advisor who can help you achieve your goals. Remember that this is a significant investment, and one that will pay off extremely well if you make the right decision, so choose wisely.
Book a free consultation here, to discuss your needs and how we can help you transform your business.
Did you know we’ve also got a free downloadable eBook dedicated to the most common profit draining mistakes made by small businesses. Check it out here.