As an entrepreneur, you should be maximizing your time on two key aspects of your company: your product/service and your customers. It is always reassuring knowing someone is simply a call away to help you with the financial aspects of your business. We’ve provided our top 4 reasons why having the right financial consultant is crucial in today’s competitive market.
1.The right Financial Consultant will help you develop a feasible 5-year growth model. Entrepreneurs tend to be optimistic about the future, and rightfully so since their business model is based on a brighter future and higher demand for their product/service. A financial consultant develops a full expense analysis of your company, along with a sustainable growth projections based on historical and market data.
2.They develop main KPIs and milestones tied to measurable goals. When developing a financial model, it is vital to make your assumption as simple and concise as possible. One minor miscalculation can lead to unrealistic growth and deem your projections erroneous. Expert financial consultants will create a financial model with the least amount of assumptions possible, driven by your company’s key performance indicators. Additionally, given their research and expertise, they will ensure proper execution of milestones are tied to measurable goals as the company grows.
3.Identify potential investor red flags. Financial consultants can quickly and effectively assess account classifications, asset and expense treatment in order to identify potential investor red flags. In doing so, the entrepreneur can be confident of all allocations and treatment of financial figures when discussing them with potential investors.
4.Help assess the right amount of capital and timing. Funding miscalculations can and often do hinder the optimal growth of a business. The best financial consultant ensures proper capital flow aligns with the demand from business. They are able to independently assess the size of various funding phases necessary to maintain the company at a certain growth rate.
At the end of the day, an excellent financial consultant will provide you with peace of mind. This allows you to invest time in the heart of your business and pass off the financial aspects of your business to a professional. Just as in your business, the return on investment on an expert financial consultant will prove beneficial as it continues to grow and will pay dividends indefinitely.