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Why your business needs financial business advice

29th November 2021 Print

There is no question that the UK is a major national success story when it comes to the track record of its entrepreneurs – not only in terms of starting their businesses in the first place, but also keeping them on the ‘straight and narrow’. 

According to statistics recently released by the UK Department for Business, Energy & Industrial Strategy, there were estimated to be about 5.6 million private-sector businesses in the UK, as of the start of 2021. But not all those firms will have survived the year, and not merely because of COVID-19-related pressures; a 2021 briefing paper from the House of Commons Library also reminded readers that about one in 10 active businesses in the UK cease trading each year. 

What does all the above tell us? Well, it draws attention to how inspired and industrious the UK’s business owners are, but it also underlines that they are far from invincible. Sometimes, whether due to simple mismanagement or other factors, companies do fail – which brings us neatly onto the matter of how well-targeted financial business advice could help your own firm. 

Never think that specialised financial business advice isn’t appropriate to you 

Understandably, not all the UK’s busy entrepreneurs will have even given that much thought to the idea of seeking out financial business advice from someone else. After all, you might be constantly focusing on your core business, dealing with its day-to-day running, ‘fire-fighting’ all manner of short-term challenges, and plotting your business’s future growth. 

But if anything, all of this simply underlines why you should be seeking out such advice. Referring back to the aforementioned UK Government statistics, it is thought that about three quarters of businesses do not employ anyone other than the owner(s). So, there’s a good chance that as an entrepreneur, you won’t have anyone by your side ‘in-house’ with the responsibility of giving you informed financial advice, based on your business’s particular situation. 

And doing without such a person can be a disastrous risk to take. You might be very passionate about your business, and its values and mission, and you may have an excellent product or service. But you cannot be constantly managing everything. So, you are likely to have already overlooked certain aspects of your business’s financial situation that a qualified advisor could point out to you.

A financial advisor can help your business to survive – and thrive 

At the time of us writing this article, many businesses in the UK were principally concerned with negotiating their way through the COVID-19 crisis; indeed, this may have recently led you to consider seeking out financial business advice. 

And sure enough, researchers cited by City A.M. have said that tens of thousands of UK businesses could fold amid the continuing strains of the pandemic – and rolled-back government support – between now and 2023. 

But in much the same way as the coronavirus outbreak wasn’t exactly foreseen by business owners, the same can be said for the future crises – whether within your business or the wider world – that could imperil your company. Getting a capable financial business advisor on board now could help you to build your firm’s longer-term resilience against threats, both predictable and unpredictable. 

Here at Practical CFO, for instance, we make available consultant chief financial officers (CFOs), finance directors, financial controllers and advisors, who can help your business to plot its course through times both good and bad. The outsourced nature of our service is a crucial aspect for many entrepreneurs who might worry about the cost burden of having a full-time financial director by their side, but who may still wish to benefit from the same informed advice and expertise. 

Specialised and tailored financial business advice isn’t just something you should be asking for at times when your company is in obvious trouble. You should always have access to an experienced professional who can help keep an eye on your business’s financial health, devise a sustainable growth strategy, and give you pointers on the best moves to make to fortify and grow your business.

As the owner of a small business, you are likely to face relentless pressures on your energy and time. You might have to make decisions ‘on the fly’, but this could come at the cost of effective cashflow management and strategic planning for the months and years ahead. 

A financial business advisor could greatly assist you in avoiding trouble and keeping your business’s head ‘above water’, even amid challenging times. Reach out to our team at Practical CFO today, for an in-depth discussion of how we can adapt our own services to your business’s most specific needs and aspirations.