Why Small Business Financial Advisors are Essential for Your Business Success: A Complete Guide for Entrepreneurs

- by Kathy Antipuesto

Do you know the trend with business owners who want to be Finance Savvy CEO®? “DIY” or Do It Yourself.

We understand how overwhelming it can be to manage your small business’s financial health while juggling day-to-day operations. You’ve probably tried DIY solutions—Googling for advice or even asking friends—but it feels like the more you dig into your finances, the more confused you get. You’re not alone in this struggle, and it’s completely normal to feel unsure about the best steps forward.

At Finance Savvy CEO®, we know that small business owners deserve financial success, and with the help of a qualified financial advisor, you can run a profit-centered business with confidence. In this guide, we’ll cover everything you need to know about small business financial advisors, from why DIY approaches aren’t always the best choice to how to find the ideal advisor for your business.

 

What is Business Financial Coaching for Small Businesses?

Business financial coaching is a service provided by business financial experts who help small business owners manage their finances more effectively. The goal is to offer guidance, support, and tools that help you make informed financial decisions, improve cash flow, and set strategic financial goals that lead to sustainable growth.

 

Why DIY Isn’t Always the Best Approach for Business Finances

It’s tempting to DIY your finances to save money, especially when you’re just starting out. After all, solving problems on your own feels empowering, right? But when it comes to business finances, the stakes are too high for trial and error.

Here are the critical stages where DIY can go wrong:

Critical for help Level 1: Ask for help related to business financial education with Google, family, and friends. Until you realize the information is completely understandable yet totally generic, so you don’t really know if implementing that advice will be good or bad for your business.

Critical for help Level 2: Join free community groups. Follow IG and YouTube personalities for tips. Until you realize they are sharing random things, and you may not have that specific issue in your business.

Critical for help Level 3: Join paid classes in groups because it is much cheaper than 1-on-1 coaching. Until you realize your need is so great that none of the above can help except a BUSINESS FINANCE ADVISOR.

If you’re looking to take your small business to the next level, you may want to consider business financial coaching. This means finding a qualified professional who can help you make better business decisions related to money management and finances, ultimately resulting in greater success for your business. In this blog, let’s discover what a business finance advisor can and cannot do for you, the typical cost of working with a business finance advisor, what to look for in a good business finance advisor, and how often you should meet with a business finance advisor.

 

How a Small Business Financial Advisor Can Help

A small business financial advisor is like a personal trainer for your finances—they assess where you’re at, help you set realistic goals, and keep you on track to meet them. Here are just a few areas where they can provide support:

  • Strategic Planning
    • Developing a strategic plan rooted in achieving your financial goals
    • Goal setting
    • Monthly/quarterly review of your financial hygiene and health
    • Financial process reviews and recommendations
    • Plan monitoring with actual to budget analysis to monitor whether your business is on track or underperforming and highlight where you may need to adjust your strategy
    • Overall ongoing financial strategy analysis and recommendations
  • Fundraising and Raising Capital Support
    • Development of your overall fundraising strategy & approach
    • Defining capital raise amount
    • Pitch deck review and recommendations
    • Financials and financial plan & projections review
    • Financial slide support for pitch deck development support
    • Option to be a part of your investor calls

By working with a business financial advisor, you can gain a better understanding of your business finances and develop the skills and knowledge needed to make informed business decisions while keeping the financial implications top of mind. This can ultimately help you improve your business’s overall financial performance and financial health required to sustainably achieve your financial goals.

 

What a Business Finance Advisor Cannot Do For You?

While financial advisors provide immense value, it’s important to understand their limitations. Here are a few things a business finance advisor cannot do:

❌ Offer legal advice: Financial advisors are not lawyers and cannot provide legal advice or services to you. They can provide general information about legal issues related to small business finances, but they cannot offer specific legal advice or represent you in legal proceedings.

❌ Provide tax advice: While financial advisors can provide general information about tax laws and regulations, they cannot provide specific tax advice unless they are certified in this area. A good finance advisor who wants to see you minimize your tax liability will recommend that you seek the services of a tax professional who studies taxes as their profession if you need specific help with your taxes.

❌ Sell financial products: Business financial advisors typically will not sell you financial products to ensure they remain independent.

What is the Cost of Business Finance Coaching?

The fees of working with a business finance advisor can vary widely depending on a number of factors, such as their level of experience, their geographic location, the scope of services they provide, and the type of clients they work with.

Ultimately, the cost of business financial coaching will depend on your specific needs and goals, and it is important to discuss fees and expectations upfront before committing to working with a financial advisor.

 

What to Look for in a Good Business Finance Advisor?

Choosing the right business finance advisor can be crucial in achieving your financial goals. Here are some important factors to consider when looking for a good finance advisor:

✅ Qualifications and experience: Look for a financial advisor with the appropriate education, training, and experience to provide high-quality coaching services. Consider their certifications, professional affiliations, and years of experience in the field.

✅ Communication skills: A good financial advisor should be able to communicate complex financial concepts clearly and understandably. They should be able to listen actively, ask insightful questions, and provide practical advice tailored to your specific needs and goals.

✅ Personal fit: Choosing a financial advisor who you feel comfortable working with and who understands your unique financial situation and business finance goals is important. Look for someone approachable, supportive, and has a coaching style that resonates with you.

✅ Track record: Consider the advisor’s track record of helping business clients achieve their financial goals. Look for testimonials or case studies from previous clients and ask for references to understand their success rate.

✅ Services offered: Consider the financial advisor’s range of services and whether they align with your specific needs and business goals. Some financial advisors specialize in specific areas, such as financial planning or fundraising, while others offer more general financial coaching services.

✅ Ethics and professionalism: Look for a financial advisor committed to ethical and professional standards, such as confidentiality, transparency, and client-focused service. They should also have a clear fee structure and be upfront about their policies and procedures.

Choosing a good finance advisor is about finding someone with the qualifications, experience, and communication skills to help you achieve your financial goals while also being a good fit for your style and business needs.

How Often Should You Meet With a Business Finance Advisor?

The frequency of meetings with your advisor depends on your business needs, but it’s recommended to meet at least once a quarter. During these sessions, you can review progress and adjust your financial strategies accordingly. Some businesses benefit from more frequent check-ins, especially during periods of growth or financial uncertainty.

However, the frequency of meetings may be higher or lower depending on your specific needs and goals. It is important to discuss the frequency of meetings upfront with your advisor and establish clear expectations for communication and follow-up.

 

How to Find Your Ideal Business Finance Advisor?

It is important to note that the cost of business financial coaching should be viewed as an investment in your financial future and the longevity of your business. The value of the services provided should be weighed against the cost. It is also important to consider the qualifications and experience of the financial advisor, as well as their track record of helping clients achieve their financial goals when evaluating their fees.

If you need a strategic finance leader outside of your small business to provide top-tier finance, business, accounting, and financial operational guidance for your business, Marguerite Pressley Davis is your woman!

Explore who she is, her services offered, the success she’s helped her clients achieve, and all the amazing things she has contributed in the business financial coaching field for small businesses here!

 

Conclusion

Managing small business finances can be complex, but you don’t have to go it alone. A small business financial advisor provides the guidance and expertise you need to run a profit-centered business confidently. Whether you’re struggling with cash flow, setting financial goals, or preparing for expansion, having a trusted financial advisor by you is an investment in your success.

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