Starting your own business can be both exciting and scary at the same time, especially if you’re responsible for managing your company’s finances. As much as we’d like to handle every aspect of our business’s operation, we all have more than enough on our plates as it is. That’s why hiring an experienced financial advisor can be so helpful—they will have the expertise and qualifications necessary to guide you through all things monetary while leaving you free to focus on your business’s core competency. But how do you find the right financial advisor?
1) Do your research when looking for a Financial Advisor
Financial advisors are available in many different forms; some are fee-based, some are commission-based and others offer a mix of both. It’s important to know what type of advisor you’re looking for so you don’t waste time interviewing people that aren’t a good fit. Ask yourself: What services do I need? Do I want an advisor who is fee-based or commission-based? How much money will my company be investing?
2) Find someone who specializes in small businesses
Finding someone who specializes in small businesses is crucial. You want somebody who will take the time to understand your company’s specific needs and goals. Hiring a financial advisor, like one from our team at Bankers Trust, can help you make informed decisions, streamline processes, and grow your company. Our advisors specialize in small businesses and offer a range of services from personal banking to retirement planning. We work with you every step of the way so that we can help you reach all of your financial goals.
3) Ask for referrals
Ask friends, family, and colleagues. The best way to find Financial Advisors is by word of mouth. If you know someone that has a good experience with their current advisor, they will be able to tell you who they work with. You can also ask around at networking events or even on social media sites like LinkedIn.
The next step is to set up a meeting with potential candidates and interview them face-to-face.
4) Interview multiple Financial Advisor candidates
- Clarify the scope of work you need to accomplish: do you need help with retirement planning, estate planning, or both?
- What is your investment style: conservative, moderate, or aggressive?
- What is your risk tolerance?
- How much time do you have to devote to investing on a regular basis?
- Do you have any specific financial goals that are not covered by an advisor’s typical services?
5) Make sure they’re a Certified Financial Advisor
Make sure they’re certified. This is one of the most important things you can do when hiring a financial advisor. The CFP® certification indicates that this person has completed an educational program and passed a national exam in personal financial planning, so they should know what they’re talking about.
6) Check their references
Check the references of anyone you are considering hiring. They should be able to provide you with information about how they work and what their experience is in their field. You can also ask them if they have any other clients who would be willing to speak with you. Getting a feel for what people who have worked with them like will help you get an idea of whether or not it’s a good fit.
7) See if they’re a good fit for your business
The first thing you should do when looking for a Financial Advisor makes sure they’re a good fit. Do they specialize in your industry? Do they have the credentials and experience you need? If not, then it’s time to move on.
8) Ask about Financial Advisor fees
What are their fees? This should be a pretty straightforward question. If they don’t know the answer or say they charge whatever they want, that’s a red flag.
Can you provide references? While not all advisors will have them, it’s important to ask for some in case you need them later on.
Do you specialize in any areas of finance? You’re going to have different needs depending on what type of company you have so make sure he or she is knowledgeable about those fields.
9) Get everything in writing
In order to ensure that you are getting what you need and want, it is important that everything is in writing. You should have a contract with set hours, rates, and other expectations before you hire any professional. It is also important that there be some sort of termination clause in the event things don’t work out.
10) Review their performance regularly
Regularly reviewing their performance can help you avoid hiring someone who is unqualified or overcharging. Check with their clients to see if they are performing well, and check their credentials and education. Make sure they have experience in your industry and that they understand your needs.
