Statistics show that 62% of American billionaires are self-made and that almost a quarter of businesses close after only a year. These two statistics show that companies can fail as quickly as they start. In the time of corona, small and mid-sized businesses are in an even more precarious situation with over 160,000 firms closing since the pandemic was announced, and with 1 out of 5 companies about to close permanently if the economy doesn’t recover in the next six months.
But historical precedent shows that thriving businesses can have their start during times of upheaval. When jobs are scarce, people need to create their own streams of income. At the same time, multiple business opportunities can rise in the time of a pandemic, such as creating protective equipment. New realities demand new services and products. But in every economic situation, starting a business needs careful consideration.
Whether you’re an aspiring entrepreneur or a seasoned businessman, you can benefit from hiring a business or financial planner to help you with many aspects of your business and finances. Here are some of those benefits.
Business owner planning
For businesses that are just starting, hiring a business planning expert means someone can help you make your business more profitable and efficient. Because it’s sometimes hard for business owners to step back and see the full picture and the reality of how their business is doing, having a new set of eyes that have a significant amount of knowledge about business planning can help you gain some clarity and perspective.
A good business advisor can help your company move in the direction of growth and stability. Especially now, with the recession, business owners and entrepreneurs need to keep their eyes peeled for threats and neutralize them immediately. Business advisors are trained to help you cut your losses and protect your bottom line.
Business succession planning
If you have been running your business for a while, then you know that it’s essential to have someone take over your company or your business after you retire or in the event of disability or death. Every business needs to have a solid succession plan so that operations and services aren’t disrupted if anything happens to the owner.
Transfer of ownership doesn’t need to be messy. If you plan it ahead of time, it can save your family, your employees, and your board of trustees from a world of stress.
Executive financial planning
Business leaders and corporate executives need specialized financial planning as they have more financial and leadership responsibilities on their shoulders. Because they represent a segment of the population who have a higher net-worth, they have more to lose in the event of a bad investment or a failed business decision.
Hiring financial experts can help executives with risk assessment, tax review, cash reserve assessment, and other vital aspects of a corporate executive’s financial life. Business leaders need a well-thought-out financial strategy, and professionals can significantly help with this.
At its core, having an insurance strategy means being prepared for whatever the future might bring. Whether it’s for personal use or for the business, entrepreneurs need assistance from experts to know how to use their resources to decisively respond to new challenges, like a pandemic or a recession.
Because entrepreneurs and businessmen have more to lose, they need a more thorough risk assessment and management when it comes to investing. Investment planning is the system of identifying financial objectives and achieving them by building a solid plan. Financial experts have a wealth of knowledge and experience about which investment vehicles are worth investing in, whatever the state of the economy. Some of the goals of good investment planning include greater income, a sense of financial safety, tax minimization, liquidity, and capital gain.
Once you start making a significant amount of money from your business or company, you need to be able to protect your legacy. If you have a family, they must be protected in case something happens to you. It’s never too early to think about the transferring of your wealth to ensure that the future generations of your family are financially secure and that they have the building blocks for success. This could be the greatest legacy you leave behind.
Wealth managers serve high-net-worth individuals by helping them with their tax and accounting concerns and helping out with estate planning.
Protect Your Financial Future
In a time of economic uncertainty, there are steps you can take to minimize your risks and losses. Consider hiring a financial expert to help you run and protect your business and, in turn, secure your financial future.