Solopreneurs are not immune to business challenges. In fact, they may have more of them. A vast majority of those solopreneurs deal with financial challenges by taking money from their own pockets. 38% of them are forced to make late payments or no payments.
As skilled entrepreneurs, solopreneurs often focus on one main skill to market their business. They push financial matters to the back. One of the best things a young entrepreneur can do is hire a financial advisor.
Many financial advisors are entrepreneurs themselves. Their skill is money management.
Do I Need a Financial Advisor?
Solopreneurs face challenges that other business owners do not. The main challenge is that they often do everything for themselves. From marketing to financial management to website management, the solopreneur does it all.
The one aspect that can have the biggest effect on their business is finances. That why a financial advisor is so important to solopreneurs.
Financial advisors take care of more than accounting. They help those who are starting a business to make sound financial decisions. Everything that costs money involves a decision.
The successful entrepreneur understands there is a limit to available money. They must choose. A financial advisor can help the solopreneur make the best decisions for their future.
When you are starting a business, your financial advisor is someone that you need to place all of your trust. They have control of your money. Your financial advisor will essentially be your partner.
How to Find a Financial Advisor
First, find the right financial advisor for a young entrepreneur. Most financial advisors specialize in dealing with specific kinds of companies. Look for advisors that have a large number of entrepreneurs as clients.
Make sure that the financial advisors you are considering have credentials and experience. They should have the Certified Private Wealth Advisor certificate and the Certified Financial Planner Certificate.
Partnerships offer extra value. They can offer the young solopreneur more experience and a variety of skills. Visit this website as an example of a father/son partnership
Some of the best business relationships are built from personal recommendations. Colleagues, family, and friends can be good sources. Ask people you know and trust for their recommendations.
Finally, make sure that you and the financial advisor get along well. You’ll be working together often. They should have a personality that matches your own.
Solopreneurs Should Discuss Future Strategies
Advanced planning is one of the key discussions you should have with a financial advisor. Taxes, debt, estate planning, and charities are just a few factors they need to navigate. Advisors should be proactive in protecting your assets from lawsuits.
Start Your Business with Confidence
When solopreneurs work with a financial advisor, you have more skill-specific assets as a solopreneur. Sure, you could learn to do your books by yourself. You can’t bring the education and experience of a financial advisor though.
Ease your mind. Work with a financial advisor and know you’re always on track for a successful future as a solopreneur.
If you found this article helpful, check out the finance and entrepreneurship articles on this blog.