Entrepreneurial momentum is on an upswing these days. The U.S. Chamber reports there are over 31 million million small businesses in America, with over 61 million employees.
But despite these high numbers, you may be wondering what percentage of businesses fail? Plus why do businesses fail? Most businesses that will fail will do so within the first five years. In the first year, around 20% of businesses fail and 30% in the second.
One of the top reasons businesses fail is they run out of money. Don’t be a statistic; instead, learn from the reasons these companies failed and find a way to use the information as a recipe for success.
Hiring a financial professional can be a major part of your success story, so read on to learn several reasons why.
Instances to Hire Financial Planning Services
Sometimes hiring a financial planner can be a matter of emergency, like having to take over a family business or the company undergoes an unexpected reorganization. A few instances to hire a professional might be:
- First-time business owner
- Financial liability management
- Asset management
- Emergency strategies
- Family business inheritance
Hiring an expert is always a great idea, no matter what your small business situation is.
Avoid potential pitfalls with mismanagement of funds and benefit from the experience of a professional. A financial planner can help you separate your personal and professional finances and show you how to protect your assets in both areas.
They can also show you ways to diversify wealth and manage company growth.
Cash Flow Management
Cash flow fluctuates tremendously for small business owners, so it’s essential to have someone on your side to help you weather the storm. One small mistake could put your business at a higher risk for failure.
Avoid bankrupting your business by hiring a professional who can give you peace of mind about the state of your financial analytics.
Financial planning services can help streamline areas of your expenses that need improvement.
This is an essential step to help ensure your business has its financial priorities in check.
In turn, your business can concentrate on growth in areas that might have been overlooked.
When you’re a small business owner, it’s common to focus on short-term results without regard to the future. A good financial planner can help you spot trends and map out long-term financial goals.
They can also help you prioritize what to focus on next.
Small Business Tax Expertise
No one likes doing their taxes, but it’s something that every small business must do. Consult with your accountant first to assess your business’s tax status. Then, once you’ve stabilized your tax plan, let a financial planner take it from there.
Not only can they help you save money, but they can help you save for the future.
Although your personal life and your professional life sometimes blur together, there will be a time in the future when you decide to retire. Learn how to better plan for your retirement, build a retirement fund, and keep your business afloat.
Create a Better Small Business Financial Future
Whether you’re looking for your next startup partner or want to get a better vision of your company’s future, hiring a financial planning service like Tommy Mai Financial Education is an excellent investment.
Owning and operating a small business always comes with a risk, but with the help of a financial planner on your side, you’ll have a better shot at success. Consult with your accountant first to assess your business’s tax status. Then once you’ve stabilized your tax plan, let a financial planner take it from there. Or you can seek help from organizations like a PEO whose area of expertise includes payroll taxes, employee tax forms, and reporting forms.
Your small business will also need core traits to success including:
- Talented staff
- DEI company culture
- Reputable brand
Keep reading our small business blogs content for more tips on growing a successful small business.