Why Entrepreneurs and Business Owners Should Hire a Financial Fiduciary

Why Entrepreneurs and Business Owners Should Hire a Financial Fiduciary

When it comes to managing your finances, as an entrepreneur or business owner you have a lot of work on your plate. You may be responsible for everything from accounting to marketing and even banking. However, there is an area you may not be thinking about: financial planning and investment strategies for your business.

When you are starting or expanding a business, it is easy to focus too much on the daily operations of your company, forgetting everything else. It can be difficult finding time to think about how to plan for future growth or invest money for retirement and other things down the line.

This is why you should consider partnering with a fiduciary financial advisor near you

This article answers the following questions:

  • Why does a successful entrepreneur need a financial advisor?
  • What is the fiduciary standard and why is it important for your business?
  • How can a fiduciary advisor help you reduce costs?
  • Could your business benefit from better-planned growth?
  • Why must a fiduciary have no conflicts of interest?
  • Can a fiduciary advisor help optimize your employee benefits?

Wealth Management Goals: Why You Need an Advisor

Entrepreneurs and business owners are typically extremely busy running their day-to-day operations so managing the financial side of things might not be top of mind always. You’re more than likely wearing multiple hats, serving as an accountant, a customer service rep, a marketing professional, and a CEO during a single workday.

In fairness, you might be able to manage all of these roles effectively (at least for a time). Nevertheless, there are exclusive benefits to partnering with a fiduciary financial advisor. One of the simplest is their ability to help you plan ahead and prepare for each stage of business growth.

It almost gets ironic: sometimes success is rewarded with massive complications.

A fiduciary financial advisor can help minimize and navigate through your business’ growing pains.

Reason #1: Fiduciary Standard- Putting Your Interests First

A fiduciary investment advisor is responsible for making investment decisions based on your risk tolerances and best interests. A non-fiduciary advisor may recommend various investment products to you, such as a mutual fund, annuity, or stock purchase where they receive a commission or other form of payment for that sale but they are not held to a higher standard of service that fiduciaries are.

An independent wealth management firm is regulated by the Government Securities Act and the Investment Advisers Act of 1940. This means that they are legally obligated to act in the best interests of their clients at all times. If they do not act in this manner, they could face severe penalties.

Reason #2: Maximize Your Cost Savings

Partnering with your financial advisor to develop a robust operation budget for your business can pay big dividends over time. Your advisor should review all of your operational costs and then factor in your cash flow to ensure your operating budget is fully optimized to meet your operating demands.

During their analysis, they may uncover hidden costs that can be a drag on your business’ bottom line so meeting with your advisory team on a regular basis should ensure consistency of your daily operations as well as longer-term planning and investment considerations.

Reason #3: Professional Financial Planning Helps Anticipate Growth (Shrewdly)

When you launch a new business, there may be plenty of money at your disposal. However, as your company continues to grow, it takes careful planning to meet the demands. Working with a fiduciary financial planner can help you safeguard enough capital to continue growing in the future.

A financial planner can also assist by developing a comprehensive financial plan that includes investment strategies and budgets for both today and your long-term future. As your business expands or contracts, you want to ensure that your financial plan accounts for those conditions so you have the proper staff and operating budget in place to be sustainable.

Considering Working With a New Financial Advisory Team? Talk with the ViaWealth Team Today.

 Reason #4: Coordinate Your Personal and Business Finances

Your advisor should help you coordinate both your personal and business finances. With that in mind, you should consider working with a financial advisory firm that specializes in working with entrepreneurs and business owners.

An experienced advisory firm can provide quality advice regarding planning, tax, and investment strategies, both for the inside and the outside of your business. For example, if you are an accredited investor, it might be prudent for you to invest some of your business income/profits into alternative investments to better diversify your portfolio. A financial advisor’s job is to provide you with sound investment advice in relation to growth, expenses, tax considerations, risk management, and risk tolerances.

Reason #5: Minimize Short and Long-Term Tax Liability

A fiduciary financial advisor can help you strategize your finances in ways that minimize your long-term tax liability. This tax planning, in turn, can allow you to spend more of your money on things that are important to you, like retirement savings or college tuition for your children. It is only part of our wealth management services, but it is an important one.

Reason #6: Streamline Your Employee Support

One of the most important duties of an entrepreneur or business owner is managing your employees’ benefits. This is a big task that can take up a lot of your time (especially if you are not 100% sure of the best way to go about it). Thankfully, there are ways to streamline your employee support system and save yourself some stress.

When it comes to choosing benefits for employees, there is no one-size-fits-all solution that works best. In fact, there are certain plans that will work better for some businesses than others. An experienced fiduciary advisor can help guide you through various retirement savings options that you can make available to your employees.

These insights will be determined from factors like the size of your company, what type of industry you operate in, and how many employees will be covered by each plan. At

Maximizing Your Income

As the business owner, you should work with your financial advisor to ensure that you are addressing your personal finances correctly.  Questions like:

  • Are you taking too much or not enough income out of the business?
  • Are you maximizing your retirement contributions?
  • Should you move some of your income into additional investment for the business to grow?
  • Should you consider giving your employees equity in your business? 

These are complex questions that your financial partner can assist you with. At ViaWealth, we specialize in assisting entrepreneurs and business owners make sound personal and business investment strategies.

Looking for a financial advisor in Minneapolis? Contact us today to set up a financial portfolio review.

ViaWealth, LLC is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and, unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance.

More about the author: Lance Larson

Lance is the Managing Member and Founder of ViaWealth LLC.

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