QUESTIONS you need to ask your business advisors 5

As business owners you allocate a portion of your budget for professionals that you expect to help your business thrive. But are you getting the service and advice you’re paying for? We asked five local business advisors what questions they would tell their friends and family to ask of the professionals that they are hiring to help them grow their small business. Below are their responses.

JOSH BACH Red River Financial Group 701-232-3888

redriverfinancialgroup.com

Are you a fiduciary?

The best way to find out whether an advisor has your best interests at heart is simply to ask, "Are you a fiduciary?" The fiduciary duty requires an investment adviser, by law, to act in the best interest of the client, putting clients’ interests ahead of his or her own at all times. This is the single most important question you can ask.

We feel strongly that investors should work only with fiduciaries. The world of investment advice is plagued with conflicts of interest, obscure disclosure and an overall lack of transparency. Seeking out an investment adviser who will act as your fiduciary can help to eliminate many of the problems associated with commission-oriented, product-focused salespeople. Because a fiduciary is required by law to give full disclosure of how they are paid, as well as any conflicts of interest they may have, before you do business with them, you as the consumer are in a better position to make an informed decision.

What legal structure is right for my business?

Sole proprietorship, partnership, LLC, or corporation? There are many business structure types and each has its unique drawbacks and benefits. Ask about the type of entity that makes sense and maximizes revenue for you and for your business. You should also ask the attorney specific questions that are relevant to your needs to determine if he or she has the necessary background knowledge. For example, if you’re setting up a new business, you may want to ask the attorney to describe the difference between a corporation and a LLC or if there are annual fees for business entities in your state. These types of questions can be a good method to gauge the knowledge base of the attorney and whether he or she is best suited to help your business.

How can you help me grow my business?

A skilled accountant should get to know you and your business well enough to regularly keep you aware of the array of factors that could impact your bottom line, for better or for worse. He or she should also be open to assisting you in weighing the financial ramifications of certain decisions, like whether or not to hire an independent contractor or a full-time employee, buy or rent an office space, rent or lease a company car, and much more. Your accountant should also work collaboratively with you in a way that makes it easy for you to consider and understand which actions you need to take now and in the future, ideally without the usual confusing accounting jargon. A qualified accountant absolutely can help small-business owners expand over time if you have the right one in your corner.

Are those insurance limits enough for my needs?

The appropriate limits depend on your business size, claims history and industry. Your agent can help you determine which limits fit your business. Additional insurance such as umbrella insurance can supplement your general liability coverage when its limits have been reached. You can purchase umbrella coverage in increments of $1 million, and it's often a cost-effective way to fulfill liability insurance requirements in client contracts. Understanding the importance of coverage limit is also important. It is important to understand the scope or liability, the nature of limitations, reason for limitations of liability, and their benefits to you. Request a breakdown of the insurance premiums charged and what is included and excluded in your plan.

Tell me about your loan approval process.

For some banks the approval process can involve many people and multiple committees. You should ask who has final authority to approve your loan. Is it the person sitting in front of you or somebody you have never met before?

If you need more funds to grow your business who has the authority to increase your line of credit or approve further loans? Most business owners assume that their business banker is the person making the decision. In most banks that is not the case, and even if it might be the case on that smaller loan, you can bet a larger loan is going to involve a large committee of people you have never met before. Look for a bank that can respond to your needs as a business owner in a fast and efficient way. You don’t want to deal with committees of people that may reside half way around the country.

Aspire Financial Building

The five business professionals above can all be found within the Aspire Financial building at 5195 45th St. S., Fargo. The new building opened this summer with the goal of being a “one-stop shop” for business owners and individuals seeking integrated advice from their various business and/or personal advisors. The team works together to provide proactive and integrated financial solutions for their clients. You can contact any of the individuals above for more information or call 701-277-3111 to begin a free consultation and facilitation meeting.

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