Coral Funding shares five reasons why female entrepreneurs need financial advisors
Whether you’re just jumping on board or already filled with experience, you’ll realize that being a female entrepreneur has its own sets of challenges.
In today’s ever-changing market, you need to know the things that will make you stand out from the hundreds of thousands of businesses available for your audience.
Sure, you may have a unique selling point for your products and services, and you have some inkling about how to create your systems from production to retail. However, all these efforts come to waste when you don’t have the capabilities to track your budget and understand your cash flow.
Coral Funding knows the struggles of the modern-day women entrepreneurs. This is why they recommend business owners have their financial advisors throughout their entrepreneurial journey. In this article, they will provide insights into the benefits of having a financial advisor for your business.
1) Financial advisors help you eliminate expenditure risks
Many small business owners start on their business with some form of a loan. Whether they had investors or have pooled funds on their own, there’s some capital involved to get the business running.
In the example mentioned above, you can conclude that creating a business is all about taking risks. However, it does not mean that you’re entitled to simply take any risk you want. To succeed, you need to make calculated risks that can define the success of your company.
According to Coral Funding, the main reason why many women-owned businesses fail is because of cash flow problems. When money goes out and nothing goes in, the business eventually turns into a hobby, rather than a profitable source of income. The role of these financial advisors is to help eliminate the costly risks that could hinder the success of your business.
How do they get this done? They assess the financial health of your business as well as the amount and kind of profits you make. After this, advisors are also trained to smoothen minor problems to maximize the income of your venture.
2) Financial advisors help you in cost reduction
There are several ways to increase your profit. You can either:
- Increase your market reach and clients.
- Increase your charges.
- Reduce costs.
Out of all of these choices, the easiest one to do would be to reduce costs in your business. Perhaps as an owner, there’s just too many things on your plate.
You are probably heading your staff in physical locations, going to marketing meetings, reaching out to suppliers, and all the other high-level tasks. All of these responsibilities may make you forget that there are ways to cut costs.
With a financial advisor, you don’t have to leave these strategies in the back burner. They are trained to look at every area of your spending and see which ones can be minimized or eliminated without compromising the quality of your products and services.
Having a financial advisor who is an expert in your business field is also beneficial. They would know exactly which are the common budgeting problems that crop up for businesses in your industry.
3) Financial advisors are experts in long-term planning
Unless you are settling for a temporary business which is unlikely, you would want the best shot at being successful as an entrepreneur. However, the road to being a profitable business owner is a narrow path. If you don’t have a financial long-term plan in mind, it may be the sole factor that can make your venture unprofitable.
A financial advisor can help you in the overall planning of your profit goals for the long-term. They can assist you in setting up monthly, annual, or even up to 10-year financial plans. Of course, these pointers could change over time when markets are volatile, but that is why you need experts to rely on.
4) Financial advisors help you take care of taxes
Sometimes, there’s just nothing more complicated than the tax systems set up for businesses. Whether you’re an LLC, a corporation, or a sole proprietor, there’s a lot of small details that you need to take care of when it comes to filing taxes.
This is where financial advisors roll up their sleeves and help you with tax planning. They can help you avoid penalties, prepare documentation on time, and secure all the things you need to get the most returns at the end of the tax year.
Although it is possible to do these things by yourself, you can spare yourself from the hassle and stress that usually happens on the looming tax filing deadlines.
5) Financial advisors can assist you in predicting profitable opportunities
Although women are recognized as multitaskers, there are instances where there’s just too much on their plate. When work-life balance isn’t in place, you tend to neglect one area of your responsibilities in exchange for another.
As a business owner, you need to constantly reinvent your ventures to adapt to changing times. Policies can change overnight, and even markets could crash in the blink of an eye. Financial advisors are also vital for you to spot opportunities to gain more profit and to guide you in the right direction for your business.
For example, a partnership proposal or a company buy-out is at the table. It could be tempting to jump the gun right away, but this doesn’t mean that it is a wise decision for your business. Sitting down with a financial advisor while discussing the pros and cons of decisions that could affect your business is key to long-term success.
If you are a business involving physical goods, financial advisors can help you in some decisions about picking a more cost-effective supply chain. By dissecting the areas crucial to your business, they can spot opportunities that may just bring back a lot of profit in dividends.
Are you serious about your business? Hire a financial planner
The reasons mentioned above should be enough for you to decide on getting a financial planner. If you are truly serious about achieving financial success as a female entrepreneur, having a financial expert by your side could be a crucial decision.
Photo by Brooke Cagle
