Many people question whether small business owners need financial planners. The answer is yes, they do! Most small business owners do not have plans in place for their financial security. Let’s look at some statistics.
- 30% of small business owners haven’t even calculated how much money they will need for retirement
- Less than 25% have a plan for transferring their business to a new owner when they retire
- Only 40% of small business owners have spoken to a financial advisor.
Understanding Your Financials as a Business Owner
The numbers show that most small business owners have not made adequate plans for the future. Even if a small business owner has a plan in place, dealing with personnel decisions, cutting costs, growing sales, capital allocation, and more makes it extremely difficult to invest strategically.
One of the biggest reasons that people choose to start their own business is to be in control. So, it is easy to see why they also want their business, their future, and their children’s future to be in their control as well. We understand that desire.
However, if you are hyper focused on the business and expending all your energy there, who is looking out for your personal finances? Running a business is hard work, and very time consuming. There is no time to check if the US dollar is depreciating or appreciating and consider how that might affect investments this quarter. There isn’t time to look into 10-Qs and 10-Ks, follow interest rates, track foreign exchange movements, plan for retirement and stay up to date on Federal Reserve statements.
Choosing a Financial Planner for You and Your Business
This is where financial planners come in. They can do all of that for you and help you make the best decisions for your future, and your business. You can’t do everything alone. Therefore, you delegate. Consider hiring a financial advisor. But how do you choose? Check out our tips for finding the best financial advisor.
A study showed that the factors people feel are most important are:
- Knows My Needs: 27%
- Respect/Know Brand/Company They Work For: 26%
- Easy to Talk With: 26%
- Colleague Recommendation: 23%
- Friend/Family Recommendation: 23%
- Existing Personal Relationship: 22%
People want an advisor that they can trust. Someone that respects desires and understands their needs. Someone that they can have a relationship with. Having a good relationship with your financial planner is the key to long-term success.
Financial Planner for Small Businesses in Northern Virginia
To reiterate, yes small businesses need a financial planner. If you are ready to speak to somebody about your financial goals, contact Argent Bridge Advisors today. Our team is ready to work hard for you and help you achieve your financial goals.