Money management is one of the most common causes of business closures. To avoid this situation, a financial advisor is one of the best ways to help you avoid it.
A plane without a pilot could not fly. However, not everybody knows the importance the control tower has in the course of its flight. Without the help of controllers, airplanes would not have the flight references necessary to avoid collisions during takeoff, landing, or the flight itself.
Similarly, every company needs its CEO to captain it, yet this figure is neither omnipresent nor omnipotent. Therefore, the heads of companies, whether large or small, need to delegate functions to experts in various areas.
One of these professionals is the financial advisor. This figure acts as a control tower in a company. While the CEO knows where to start and where to go, the financial advisor helps the CEO to get the most out of the resources available to achieve the company’s goals. As such, here are some of the roles of financial advisors:
- 1️⃣ Finance is not a subject to be taken lightly. There are areas of the business that the business owner can run without problems. However, money management and its consequences are common causes of business closures. Having a financial advisor allows you to mitigate these risks and overcome bumps, a task that could otherwise be tedious.
- 2️⃣ Unless you already have financial expertise, a financial advisor saves time and money. This professional will take care of executing complex tasks and provide a solid financial foundation so that the CEO can continue to make decisions from an advantageous position. Ultimately, this figure helps to avoid mistakes and the resulting costly solutions.
- 3️⃣ A financial advisor also prepares the company for future growth and new stages of development. Among the functions of an advisor is the provision of an external and objective view to make clear decisions, a key aspect when facing expansion and development plans.
- 4️⃣ Such an external figure helps to challenge the company’s current status quo. The objective view of the advisor helps to optimize the company’s activity in the short, medium, and long term. It will help to prioritize plans according to the needs of the business and, above all, provide an objective criterion supported by figures.
In Fellow Funders, we know that not only good ideas are needed to run a business, but also numbers to support them. This is where a financial advisor comes into play. Such a professional can have a very positive impact on the value of any business. For this reason, our analysts in the Fair Value division consider the presence of these figures among the partners of the companies we value.