Each week, a certified financial planner or advisor shares tips for managing money and preparing for your financial future. This week’s guest post is from Lee Baker of Apex Financial Services.
Thinking about starting a business? Should I consider hiring a financial planner and if so when?
Starting a business is an incredibly daunting venture. Having done it myself, I can vouch from firsthand experience. Inevitably, you’ll ask yourself whether you should consider working with a financial planner. The answer is a resounding “Maybe!” If you are certain that you are on top of all the complex financial issues you are likely to face, then perhaps you don’t need a to work with anyone. On the other hand if you are not so sure, talking to a planner sooner rather than later is a very good idea.
Look for a planner that has experience working with small business owners or start ups. The value that you might get from a planner helping you avoid a mistake could be priceless. Many planners specialize in working with business owners in different industries. This type of experience can be very handy when you are looking to finance an equipment purchase or looking to get the best deal on the various types of insurance you may need to purchase.
Another area where a planner could be very helpful is providing guidance if you are leaving a previous employer. The transition from employee to CEO of your own company is a complex move. Where do you go for employee benefits? Do you keep what you had before? Can you get something similar on your own? Do you really have enough reserves or other revenue to last until you become cash flow positive?
Another potential benefit is the ability to tap in an additional network of resources. For most planners, you not only get the benefit of what’s between her ears you also get the benefit of connections made for other clients in the past.
Through the years I have worked with a number of clients who either started a business or after we took a look at their situation, decided not to start a business. The biggest benefit was my ability to look at things more objectively than the client.
Are you interested in starting your business? Will you speak to a financial planner first?