It’s always a little bit of a gamble to know how much of a product you need in stock, as predicting what will sell is risky. If you find yourself wondering how much of a product will sell, how much to manufacture, and what risks regarding product production are manageable, then it may be wise to enlist a financial advisor to work with.
There are a lot of reasons a financial advisor may be smart to enlist, especially as someone concerned with inventory. Not only will they help you keep your finances in order, but they’ll help you make smart decisions related to how much you keep in stock and what price you sell your products at. They can help you work out budgets for product manufacturing, ordering, and stocking as well. Here are three reasons it may be good and beneficial for you to enlist a financial manager.
Meeting Your Goals and Tweaking Your Budget
Financial advisors plan with you the best ways to spend and save with your long-term goals in mind. If your means (i.e., manufacturing costs, advertising fees, product production) are not justifying your ends (i.e., how much money you’re making), an advisor can teach you how to balance that without compromising your whole order of operations altogether.
See, it’s part of a financial advisor’s job to help you achieve your goals. One way of doing this is to help you work out a budget and aiding you in monitoring it. Often, a financial advisor from Ohio University or elsewhere has intentionally studied finance rather than accounting and knows the name of the game when it comes to economics, consumer fads, and risk taking. For instance, if you need X amount to produce a product, but your budget for the product from manufacturing it to distributing it is less than X, you obviously need to change something, right?
Well, a financial advisor will be able to say, “You can’t afford this, let’s look for different manufacturers,” or “You should stop selling this product.” They might even say, “Your budget is too small, you can afford more, and it’d be a risk worth taking.” Regardless, they will help you choose the best course of action based on their knowledge of markets and expertise in consumer habits.
Accounting and Organization for Your Risk-Taking Ventures
In a financial plan, it’s necessary to consider risk management in your budgets and saving plans. A financial advisor will not only keep your own risk limits in mind, but they will help you understand whether or not you need to tweak your approach to the whole thing.
In doing so, you may need to get your accounts more organized. You need to have every little expense, plan, and profit written down. Expanding on what you’ve already done may cause you to keep your records more meticulously. This may be especially vital for you considering the tax changes underway. You don’t want to get audited! More organization will probably be necessary, but with a financial advisor helping you plan new things, it will probably be easier to organize anyway.
It’s Helping Small Businesses Like Your Own
Last but not least, you’re most likely going to be helping a small business as yourself. Right now, “The Big Four” — aka the four largest accounting firms in the United States — have put a lot of their own efforts towards financial consulting, according to the Villanova University. In doing so they are running smaller financial advisors and accounting firms out of business by making their prices unreasonably low for anyone else to compete with them.
You run a business and know the struggle of fair competition. You know about the Walmart effect — big corporations move into the realm of small businesses and offer the same services for incredibly low prices, making the smaller businesses unable to keep up and many times forcing them out of business, according to Investopedia. Support people in your own situation by enlisting them to help you with your business, and hopefully the results will be mutually beneficial.
Have you ever hired a financial advisor? Did you find it to be a good choice? Let us know in the comments below!
Bio: Avery T. Phillips is a freelance human being with too much to say. She loves nature and examining human interactions with the world, especially when it comes to business, tech, and workplace safety. Comment or reach out @A_Taylorian with any questions or suggestions.