After investing countless hours of relentless effort, many SME owners are now grabbing the opportunity to push the boundaries of their businesses and take the next step into bigger operations.
But hard work alone may not give you all of the well-rounded business acumen needed to compete in a larger corporate arena. The trick to transitioning from a successful small operation into a medium or large business is being able to decide when it’s time to ask for advice, and more importantly, from who.
Asking for professional independent advice can maximise your business potential and help realise a range of opportunities you never knew existed, giving your business an extra boost and an added edge over your competition.
With finance one of the key areas many SME owners seek expert advice on — here are a few tips to help you find the right financial advice for your business.
Know your business
Before any adviser can help you understand the financial growth options available to your business, you’ll need to be able to explain the vision you have for your company’s future. Take the time to consider your business goals and how you plan to get there. If possible, document these in a business plan or financial projection.
The price
There are two main groups of financial business advisors to select from, those that you’ll pay by the hour or day for tailored financial business advice, and those that you don’t typically pay directly for their advice, which may be more generic in nature. The key is value for money. A few hours or a day of the right advice could increase your business growth exponentially.
Who
A quick internet search will reveal a multitude of available financial business advisors. The options can be broadly grouped as follows:
Accountants
Many accountants now do far more than just prepare tax returns. They can assist in planning business financial growth, with a combination of financial planning, funding and tax advice. As you pay for this advice by the hour, it’s typically independent, well researched and reliable.
Business advisors
These are generally experienced business people who now professionally advise other business owners. Their financial advice is usually well founded on tried and tested business practices for growth. Business advisors often spend a number of days working with you to understand your business and then tailor their advice to your specific needs.
Your bank
Most banks now provide business bankers to help you explore the suitable financing options available. However, be mindful that their advice isn’t typically independent and can be limited to the products and services they offer, with their aim to steer you towards taking up some of those products.
Finance brokers
A broker’s strength lies in the breadth of products they can offer advice on, coupled with their drive to provide high quality service and turn-around. They’re generally not limited to any one lender and are usually flexible as to where and when they will meet you. While the depth of financial advice and objectivity may not match some other options, they can be a very economical choice as they are usually paid on commission by lenders, rather than yourself.
Government agencies
It’s a surprise to many to see the vast amounts of business financial advice and general information available though both state and federal government agencies. Some now complement their web-based information with advice lines, seminars, workshops and referrals, which are either provided free or at a nominal cost.
Seek recommendations
Your network of friends and business contacts such as your local Chamber of Commerce, trade association or professional body can often provide reliable referrals to financial advisors.
One size fits all
Will your financial business advisor be able to support your business through from its current size to its full potential? Ask for testimonials from clients who engaged the advisor when their business was similar in size to yours, or speak to some of their previous clients to get a feel for their range of capabilities, industry knowledge or limitations.
Qualifications
Ask any potential advisor about their formal training, education and professional experience, ensuring it provides you a suitable level of comfort.
Accreditation
Check whether your potential advisor holds industry accreditations, professional memberships or licences that indicate they are reputable and well established.
Expertise
Does your financial advisor have relevant knowledge or experience in your area of business? Are they aware of the financial and economic environment affecting your business?
Choosing the right person to take financial business advice from is as important as selecting the right finance option to grow your business. So make sure you’re comfortable and confident in the advisor you select and remember, you can’t put a price on good advice.