Connect with us

Accounting & Finance

Financial Planning Services For Your Small Business

Last updated by

on

4 steps to starting a business

Entrepreneurial momentum is on the upswing these days. The U.S. Chamber reports over 31 million small businesses in America, with over 61 million employees.

But despite these high numbers, you may wonder what percentage of businesses fail? Plus, why do businesses fail? Most companies that will die will do so within the first five years. Around 20% of businesses fail in the first year 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 why¬†these companies failed and find a way to use the information as a recipe for success.

Why Financial Planning For A Small Business?

Financial planning can be even more critical for small businesses as they often operate with limited resources and face specific challenges.

Financial planning helps you set clear financial goals for your business. Whether it’s increasing revenue, expanding operations, or improving profitability, having well-defined objectives allows you to stay focused and measure your progress. A financial plan helps you create a budget and allocate resources effectively. It ensures you’re spending money wisely and not wasting valuable resources on non-essential items.

Small businesses are particularly vulnerable to cash flow fluctuations. A financial plan can help you forecast cash flow, identify potential shortfalls, and take proactive measures to avoid cash flow crises.

Financial planning involves assessing potential risks to your business and developing strategies to mitigate them. This could include having emergency funds, obtaining insurance coverage, or diversifying your revenue streams to reduce reliance on a single source.

Hiring a financial professional can be a significant 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, regardless of your small business situation.

Experience

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.

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 having someone on your side is essential 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.

Expense Check-Up

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.

Future Outlook

When you’re a small business owner, it’s common to focus on short-term results without regard for the future. A good financial planner can help you spot trends and map long-term 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.

Retirement Planning

Although your personal life and professional life sometimes blur together, there will be a time 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 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 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 PEO, whose expertise includes payroll taxes, employee tax forms, and reporting forms.

Your small business will also need core traits to succeed, including:

  • Talented staff
  • DEI company culture
  • Innovation
  • Leadership
  • Reputable brand

Attracting Investors, Financing, and Customers

A well-structured financial plan will be essential if you ever need external funding or want to attract investors. It demonstrates to potential investors that you have a clear vision and a solid understanding of your business’s financials.

To attract customers, you must articulate what your company provides and how it can add value. Hiring experts with financial services copywriting experience can improve your engagement and customer acquisition.

Plus, your marketing copy can go a long way in ensuring you have a reputable brand.

Keep reading our small business blog content for more tips on growing a successful small business.