Young couple and bank manager reading financial reports while having a meeting in the office. Concept: What Does a Financial Advisor Do
Cedric Jackson
By: cjackson
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What Does a Financial Advisor Do and How Can They Help Your Small Business?

What does a financial advisor do? Can one help your small business succeed financially? 

Well, a financial advisor could help you achieve financial success. Financial advisors add a lot of useful advice and information into a situation with a small business. They help organize and understand the goals the business has and can suggest ways to do more with a limited budget. 

If you want to give your small business the best chances of financial success, consider turning to a financial advisor to help. However, it can be difficult to figure out who to turn to or why. 

What Is a Financial Advisor?

What does a financial advisor do? 

The simplest way of explaining it is to look at them as professionals who get paid to provide thoughtful, useful advice that is in your best interest money-wise. It is their job to know what financial options you have. 

They can help with personal finances, business finances, and even bigger things like investing for retirement. It all depends on what type of advice you need most.

Their job is to guide financial planning for all types of people. Most financial advisors work with a special type of clientele, such as individuals, small business owners, or parents wanting to plan for college. They look at your financial situation and talk with you about your financial goals. From there, they help guide you toward the best methods to reach those goals.

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What Does a Financial Advisor Do?

A financial advisor wears many hats. They help people from all walks of life get into better financial positions. Some of their duties include:

  • Planning for how to pay this year’s taxes.
  • Guiding people on how to best invest for their retirement.
  • Help their clients use their budget wisely to grow and help the business reach its financial goals.
  • Guide people toward investments that could help them.
  • Manage current portfolios and help establish new ones for future investments.
  • Some financial advisors can also help guide a person or small business through important insurance decisions.

So, what does a financial advisor do to help small businesses grow? 

With that distinction, there are more options they can offer. They know how to ask questions so that you can see what you want out of the business. Then, they can guide you through precisely what you need to get there. These offerings can include:

  • Helping small business owners figure out what their financial goals and objectives are.
  • Projecting what the future of the company is as it stands and suggesting things that could improve that outlook.
  • Figuring out where your company could reduce current expenses and begin to make a bigger profit.
  • Deciding what types of investments could help increase the customer base and the bottom line of the company.
  • Helping decrease the financial risks of the company so that it is more likely to succeed.
  • Showing small business owners where they could save money with their current setups.
  • Helping to alter the business plan of the current business to make way for a successful transition into a bigger, brighter future.
  • Discussing when to set money aside to ensure all taxes are paid on time each year.
  • Providing ideas on how to save money with more tax deductions each year.
  • Estate planning and business succession plans to protect the future.

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What about business coaches and business consultants? What do they do?

The 7 Different Types of Financial Advisors

When considering the question, “What does a financial advisor do?” the answer depends on what type of advisor they are. 

There are seven types of advisors, and they all answer the question “What does a financial advisor do?” differently. Each has its role and goal. However, they are all bound to make sure to do what they can to truly help you succeed financially. 

The types of financial advisors include:

  • A customer-service advisor

These professionals simply want to make your experiences with financial institutions easier. It is not their job to know what your goals are or how to guide you toward reaching them. Instead, they just want to make sure you understand your financial accounts.

  • Personal bankers

A personal banker helps you gain access to new financial opportunities. However, they ultimately work for their bank and have the bank’s best interest at heart. They help you reach your financial goals by finding the right bank product for you.

  • Mutual fund representative

These representatives are both registered and trained on how to buy and sell mutual funds. The only way they make money is by selling mutual funds, so they will work hard to find the product that will help you reach your objectives.

  • Stockbrokers

These representatives help you buy and sell stocks, making a commission off each item you buy or sell. They have advice that can guide you toward buying or selling a specific stock.

  • Investment advisor

These types of advisors can help give you advice on what types of investments you should make. However, they may only work with specific clientele. Many manage portfolios that are large only and will not work with people that want to start investing.

  • Financial planners

These advisors go through your personal or business finances and provide sound advice based on your goals. They will work with you to help you accomplish your goals. Plus, if you are not sure what goals you want to have, they can help you determine that too.

  • Insurance advisors

These advisors specialize in insurance. They can help you buy insurance for you, your family, your business, and more, depending on your specific needs. Most insurance advisors get paid for each policy they sell, so they will work hard to find the right policy that will fulfill all of your needs.

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How Much Does a Financial Advisor Cost?

Now that you can answer, “What does a financial advisor do?” it may be best to figure out, what does a financial advisor cost? 

Each financial advisor is going to set their own fees. Some financial advisors will charge by the hour. However, the vast majority of them will charge by the plan. You should expect to pay between $1,000 and $2,000 to create a full financial plan for yourself or your small business. 

If you want to have someone around that can answer financial questions on an ongoing basis, then you can also find out if your financial planner takes monthly retainers for this option. Those are usually around a few hundred dollars each month.

Do I Need a Financial Advisor?

In nearly all cases, everyone can use a financial advisor. By answering the question, “What does a financial advisor do?” you know just how helpful one can be. 

Here at Camino Financial, we have several types of financial advisors you can speak with if you’re thinking of getting a small business loan. We are here to help you succeed with any type of investment you plan to make. 

Our goal is to be there to help you come up with set objectives for your financial future and help you reach those goals.

A Financial Advisor Can Help You Achieve Success

Financial advisors will help you navigate the sometimes complex financial waters, their knowledge is much needed to help a small business thrive. 

They each typically work as independent agents and are not financially motivated by a company paying commissions. What you want is to find a small business financial advisor that is there to just help your small business reach its financial goals.

Success is closer than you think, and the expertise of a financial advisor will help you get there quicker.

At Camino Financial we support each of our members with financial guidance through useful articles and newsletters. Our motto is No Business Left Behind, so no matter whether you want to get yourself financially set or if you want advice on your small business finances, we are here to help. 

If you want to receive more business management ideas or tips on how to grow your business, subscribe to the Camino Financial Newsletter.

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