Four Ways a Professional Advisor Can Come in Handy for Your Business

By  |  0 Comments

Starting a business may begin with a dream, but it quickly evolves into much more. For some that means starting in the basement, but now you’re ready to hire some employees. Or maybe you’re getting ready to expand into a new space.

As your business evolves, you’ve got to think about the legal ramifications of your company, paying employees, taxes, growing your business, and more. That’s a lot of responsibility. It can all get overwhelming.

Having someone to help you is extremely valuable, and hiring a slew of advisors is one of the best ways you can boost your business.

But how exactly do they help your business?

Here are four ways a professional advisor can help your business reach new heights.

Forming the Right Entity

If you started small, you probably didn’t consider what the government thinks about your business. You just started selling your stuff! Well, once you are ready to join the big leagues, you have to think about what kind of entity you’re going to form.

An advisor is absolutely essential when it comes to entity formation.

At Anderson Advisors, we know that choosing the wrong entity can end up costing you thousands of dollars. Money you wouldn’t have had to spend if you would have just chosen the right entity to begin with.

Professional advisors can help you choose between:

  • Limited Liability Companies: They feature legal structures that are independent of their owners.
  • S Corporations: They put limits on the number of shareholders and must hold annual meetings.
  • C Corporations: They are taxed on corporate profits and shareholder dividends.
  • Limited Liability Partnerships: They feature some limited personal liability, but it varies state-to-state.

Save Money

One of the most convincing reasons to hire at least one personal advisor is their ability to help you and your company save money. Advisors can do this in a number of ways.

The most obvious way an advisor can save you money is in regards to your taxes. A professional tax planner can help you plan for the year ahead and ensure your tax return is filled out properly. They can also help you find deductions that will enable you to keep more money in your pocket.

Advisors can provide advice on the inner workings of your business, helping you identify areas that would offer the most monetary gain. From tapping into a new customer demographic to the management of positions in your company, they will become one of the most valuable members of your team.

More Time

Time is money. Anytime you can reduce the amount of time spent on certain tasks, the more time you’ll have to devote to other areas of your business. By outsourcing some areas of your business to an advisor, you can clear up time in your schedule to spend on other areas that require your attention.

Bookkeeping is a good example. Paying yourself may not be too overwhelming, but as soon as you start adding employees to your team, you’ll quickly find that you spend way more time on payroll than you’d like. An advisor can help you take care of the payments to your employees so you don’t have to.

Advisors can also set up your business operations properly, ensuring all the wheels in your business continue rolling with as little disruption to your day-to-day life as possible.

Growth

It’s true that advisors are great at helping you maintain your business’s current operations, but they can do much more than that—they can help your business grow.

Businesses with advisors are more likely to succeed, and that’s because they can help you see the big picture. Advisors who specialize in various fields can provide you with a wealth of knowledge and expertise. They can get down to the nitty gritty and help you see how changes in your business might affect your bottom line.

Advisors also offer a fresh, new perspective on your business. They look at your operations from the outside in, enabling them to more accurately compare and contrast your businesses to others, which is vital if you want your business to continue growing and evolving.

There are many different advisors to choose from, and the more you can have on your team, the better. It pays off to hire a team of advisors that all have different areas of expertise that they can put to work for your business. With benefits like these, you’ll be glad you did!