How Do Small Business Owners Benefit from Working with the Right Financial Advisor?

Our nation is dealing with the after-effects of Covid, rampant inflation, and a great deal of uncertainty. It may be some time before we settle back into market conditions that would be considered normal for smaller businesses. 

That is, conditions that enable them to produce profits and implement business and financial plans; helping to achieve their goals for building sustainable companies and financial security during their retirement years. 

While none of us have a crystal ball to predict the future, there is a good chance the current market volatility may be around for the foreseeable future. It may not be prudent to bet against it. 

Consequently, now may be a good time to consider working with a team of experienced financial advisors who can assist you with the development and implementation of a financial plan.  Planning now can help you navigate through the various challenges that impact your near-term and long-term financial security. 


How Can You Stabilize Your Business During Uncertain Times?

There are three core strategies that should be considered when inflation is impacting the revenues and expenses of your business.

First, the most obvious strategy during inflationary times and rising costs for small businesses is to raise prices to cover rising labor costs, products purchased, and other expenses. While this strategy certainly has risk, it may also be the difference between success and failure. 

Relatively speaking, as compared to recent years with lower inflation, implementing a price increase now is likely more expected because everyone is being impacted by the same market conditions. It should be less of a surprise that you are raising prices due to market conditions that are beyond your control. 

You are raising prices so you can continue delivering the same quality products and services.

Your competitors may also be raising their prices. 

Second, do a deep dive into your business operations and processes. Is your current business model sustainable? Are there ways to improve the productivity of your team?

Can you convert business challenges into opportunities for significant growth? It may seem a little ironic, but potential customers may be more open to change during turbulent market conditions than in stable markets when everything is taken for granted.

Lastly, don’t forget about yourself. Should you update your personal financial plan to reflect current market conditions? How long will the current conditions last? 

Are any changes required to keep your current plan on track? Planning for your business is important, but so is a financial plan that helps you achieve personal goals that impact you and your family. 

Changes in the economy and your business may impact your plans for selling your business and retiring or turning the business over to a family member. Timing can have a major impact on business and personal plans. 


How Can the Right Team of Advisors Help You Achieve a More Secure Financial Future?

Financial advisory firms provide several services that help small business owners secure solid footing. It starts with a sophisticated plan during your working years to be sure you’re saving the right amount for retirement.  

An effective plan will also include the management of any potential risk that can derail you.

Then there is the accumulation of assets inside and outside of qualified retirement plans that include the employees of your business.

Planning, investment, and risk management are three of the most important services that are provided by teams of experienced financial professionals. Tax advice, as it relates to planning and investing, is also an important service for business owners who are planning their financial futures.

Many financial advisors and their clients also network with other types of professionals who can provide services to help small business owners achieve their financial goals. For example, most businesses will rely on CPAs for tax advice and attorneys to produce legal counsel. 

You may also want to interact with a broker if you ever plan to sell your business to a third party. These services should be coordinated professionally for optimal results. Business owners want to minimize the impact of conflicting advice and duplicate fees while maximizing the probability that they achieve success.

Another important service that is provided by financial advisors is retirement planning for assets that are set aside within company retirement plans, like a 401(k).  Assets that are being accumulated outside of company plans, for example, are often accumulated in IRAs (Individual Retirement Accounts) and personal brokerage accounts. 

Maximizing contributions to various accounts is a crucial way to accumulate more assets for your future use. Since most business owners are so busy running their day-to-day operations, thinking about their financial future does not garner the attention it should. 


How Do You Find the Right Financial Firm for Your Needs?

You should look for a financial advisory firm that has successfully navigated a wide variety of market conditions over a period of decades. Experience is by far the best teacher for dealing with a broad range of market conditions. 

Selecting a firm that adheres to the Fiduciary standard of advice can also benefit you. Fiduciaries are held to the highest ethical standards in the industry. They are legally required to put their clients' financial interests ahead of their own. 

This should be a primary consideration when selecting a financial advisor.  Trust is an essential factor when selecting firms that influence how business owners plan their futures and invest their personal assets.

A good example is the team at Linscomb-Williams. We have been providing financial advice to individuals, families, and small business owners for over 50 years. 

We’re a firm committed to the fiduciary approach, with a  team specializing in the development of personalized financial plans and tailored investment strategies for business owners and their families. 


Retirement Can Last 30 Years or More: Are You Adequately Prepared?


Rising longevity can be a blessing if you have planned your financial future and accumulated enough assets. Your physical well-being is equally important. Put financial and physician well-being together and retirement really can be your golden years. 

On the other hand, a failure to plan and accumulate adequate assets can make retirement a series of unfortunate compromises. The right financial advice and strategies can help you live the life you want to live. 

Notwithstanding the volatile markets, the sooner you build an effective plan for your business and family, the higher the probability you will achieve your financial goals. 


Are Your Assets Safe From 1970’s-Style Inflation? Watch Our Video and Find Out.


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Nick Ibanez, CFP®

Nick Ibanez, CFP®

Nick Ibanez is a Managing Director and Wealth Advisor at Linscomb & Williams.

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