Who Is A Business Advisor? | 10 Types Of Advisors
Starting your own business may seem exciting but it’s not a cake walk. You will have to walk through multiple steps that could be easy or uneasy, depending upon your ability and knowledge. Though being an entrepreneur could be your dream come true, but don’t forget that being an entrepreneur you have a lot in your plate.
You will have to play many roles- be it an owner, accountant, sales executive, and a lot more. But making crucial decisions for your business with any expertise in that particular area may lead to losses. And this where business advisors come into play!
Remember, business advisors differ from the board of directors. Being an entrepreneur, you have the right to change the team of business advisors any time you desire according to your needs.
Who Is A Business Advisor?
A business advisor works with the company very closely on their strategy and advice them on various aspects, especially on product development, marketing, and finances. These three dynamics are crucial to every business.
Why Businesses Need An Advisor?
Well, no one is a master in everything they do and taking a DIY approach for your business can lead you to trouble. Therefore, experts recommend entrepreneurs to seek advisors assistance in crucial aspects of a business, before taking any decision.
Business advisors are equipped with enough knowledge and trends of the agile market that will ultimately assist entrepreneurs in making an informed decision.
10 Types Of Advisers
A financial advisor is the backbone of every business; they are also known as a financial planner. A financial adviser helps you develop a strong financial strategy for your business that further assist you in making an informed decision concerning your investment, ways to squirrel money, etc.
The responsibility of a financial adviser is to gather information about your financial situation and advice you on investment planning, risk management, superannuation, retirement, financial benchmarking and tax. More so, remember, a financial adviser should hold a finance degree as per your country’s law.
A right insurance plan can cover the maximum risk of your business, allowing you to stay stress-free from unnecessary mishaps. However, choosing the right insurance policy can be overwhelming. That’s the reason businesses consult with insurance brokers to get the right insurance policy for their assets, employees, and liability.
An insurance broker is abreast of all trends in the insurance market and advice you with the right insurance policy plan for your business. They can negotiate a better policy to offer you cost-effective plans.
Legal experts are the one that you cannot overlook in the initial years of your business. You can find lawyers for your diverse business issues that you might come across at some point in your business lifecycle. However, legal experts can guide you in:
- Choosing the right business structure
- Obtaining a license for your business and complying with regulations
- Drafting legal contracts
- Protecting your Intellectual Property (IP)
- Resolving a variety of disputes
- Insurance and finance
- Debts and bankruptcy
- Closing your business
A business mentor is usually a role model of entrepreneurs that boosts the inner enthusiasm of the owners, keeping you strong through bad times. A business mentor can be an informal adviser- a person who can be your family member or friend or consultant. However, there are formal advisers as well that involves specific programs run by the government or successful entrepreneurs.
Registered Investment Adviser
These types of advisers are kind of experienced financial advisers who change their track from the current field because they didn’t like the culture- they dedicated themselves in the investment field, advising a various entrepreneur to make better decisions. More so, these advisers are always updated with the stock market and keep guide entrepreneurs with the one-of-a-kind investment plan.
The role of a connected adviser is to introduce with great people or clients in the industry. However, once you are connected to a person, your relationship might fade away if you don’t keep in touch. That’s the reason it is advisable that entrepreneurs should analyze the connection and then hire an adviser who can introduce you to the other party.
These are the most common type of business advisers and businesses generally look for accountants to streamline their accounting books. Some firms hire full-time accountants and some just seek advice once a year. Accountants are responsible for the following tasks:
- Beginning, acquisition, or closing a business
- Tax preparation and filing
- Tax deductions, tax and concessions
- Obligations to employee
- Managing all the financial records
Analogue advisers are a group of people who belong to another industry and have a different perspective. So collaborating with such people help you explore other areas of expertise and identify various issues in your own business. A different perspective can help you spot the potential blockade in your way and get the right solution.
As the name suggests, expert advisers are the one who can bridge the gap of your knowledge. These experts are pro in technology, human resource, accounting, marketing, sales, etc.
You might come across a point in the business lifecycle, where you will require an expert to find the solution to a problem in any of the area mentioned above.
Furthermore, businesses should look for a long-term adviser who can serve you with different business issues. If you are not a legal expert, seeking advice for a long-term lawyer who can serve you with various legal services is vital.
Same is the case with accounting, if you are from a non-accounting background hiring an accountant can help you keep the accounting process seamless and keep you away from unnecessary penalties during tax season.
In a nutshell, a business adviser fulfils the areas where you as a business owner find yourself fragile and they guide you through the various situation, helping you to attain success. However, you should choose the advisor based on your present and future requirements, their experience, and their past records. Choosing the wrong business advisor can be as bad as any other bad investment (or even worse).
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