planning
BUSINESS BUILDERS
Four questions to ask a small business financial adviser by Kim Brown
TIPS 1. Many financial planners understand business issues, but may not have expertise in advising small business owners on their unique challenges and considerations. 2. Understand whether the firm or adviser makes a commission on the recommended investments in your portfolio and how much you are paying in commissions and/or fees for their services. 3. Look for an adviser who understands that every person, family and business are unique and who will advise, without exception, for your interests. 4. Make sure your financial adviser is on the same page with the rest of your team, including accountants, attorneys, real estate agents and business consultants. 5. Much of the advice that is available to you as a small business owner is faulty, so it’s important to find professionals you trust who can counsel you as your company grows.
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UPSIZE JULY • AUGUST 2019
IF YOU’RE RUNNING a business, you know that advice can be plentiful and well-meaning. Unfortunately, it can often be off track — or downright faulty. As a result, finding the right professionals to help guide you and provide counsel as you build your small company can be one of the most important things you do as a businessperson. And one of the most critical relationships for any small business owner is the one you build with your financial adviser. It’s no secret that the line between small business owners’ personal and corporate lives is razor-thin, or has even completely disappeared. I speak from experience — my husband Richard and I own JNBA Financial Advisors, a 25-person company that my motherin-law started 40 years ago. It’s been such a big part of our lives for decades and our business often blurs into our personal time. We’re more than comfortable with that. It works for us and helps us focus on what our clients need, which is a big part of the value we provide as business leaders. That’s equally true about your financial life, and why it couldn’t be more important to find a trusted financial adviser to help you and your family navigate both sides of the coin — personal and business — since they’re so connected. As you’re considering a wealth management firm or advisor, ask these four critical questions.
What’s your philosophy on small business financial planning? When working with small business owners, do you advise on both their business’ finances as well as their personal wealth management? Do you offer services that are tailormade for small business owners? Many financial planners are wellversed in areas of concern for business people, but they may not have expertise in advising small business owners on their unique challenges and considerations. Some of these may include exploring retirement savings options available to business owners, building a safety net for your family and your business simultaneously, giving back to your community, creating a legacy for the next generation and developing an exit strategy. A long-term financial partner with small business experience can help you plan for the most important aspects of both your business and the rest of your life. How are you compensated? Does the firm or adviser make a commission on the recommended investments placed in your portfolio? How much are you paying in commissions and/or fees for the services provided? Make sure to understand potential conflicts of interest and determine if you feel the adviser is always objective. By definition, a Registered Investment Advisor is held to a fiduciary standard and has a fundamental obligation to provide advice that is always in their clients’
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