By Clay Elliott, CFP®, AAMS®, CRPC®

Running a successful small business is not easy. Aside from juggling day-to-day operational tasks, the financial responsibilities can further blur the line between work lives and personal lives. 

But there is a solution. 

Smart business owners partner with an independent financial advisor to offload their fiscal obligations. Instead of spending countless hours on things like tax planning, cash flow, and investment strategies, they employ a skilled specialist to do it for them. 

Below we outline the most significant ways a financial advisor can help lighten your load as a small business owner.

Coordinate With Other Professionals

Working with a financial advisor who, in turn, coordinates with other professionals (e.g., CPAs, attorneys) can give you a significant advantage over your competitors. Specifically, you’ll be gaining the mastery of specialists in the following areas: 

Tax Efficiency. Tax professionals provide skills in accounting, tax planning and budgeting, business expenses and deductions, tax-advantaged investments, capital gains and loss management, and keeping up with tax laws. 

Risk Management. Financial advisors work with business attorneys and insurance brokers to set your business up with the proper legal structure (e.g., LLC, corporation) and insurance coverage. Together, they utilize risk management strategies to prevent your company from experiencing financial loss.

Estate Planning. Efficient estate planning safeguards business or business proceeds from divorce, liabilities, creditors, or bankruptcy. A financial advisor knows how to partner with an attorney to implement the proper shield against risk.

Manage Cash Flow and Net Worth Projections

Helping to manage your cash flow and determine your net worth are two of the most important services a financial advisor can provide. 

Detailed Business and Personal Cash Flow. Basically, cash flow is tracking your income to feel confident you have enough to cover your expenses. Financial advisors help you create a budget and track your spending so it aligns with cash flow strategies. 

Detailed Business and Personal Net Worth. Estimating how much your business will be worth in the future, a net worth projection helps you (and your advisor) make informed decisions about your retirement and future investments.

Recommend a Proper Exit Strategy

Financial advisors can play a pivotal role in helping you create a suitable exit strategy for your small business. These are some of the issues they can solve:

When should you hold on to your business or sell? This can be a tricky one because emotions often cloud sound judgment. A financial advisor can assess your business’s financial health and weigh it against current market trends to help you make the most appropriate move. 

What should you look for when selling your business? A financial advisor can provide valuable insight here, including assessing financial health, investment planning, and tax implications. 

What does a good business transaction look like? If you decide to sell, a financial advisor can provide valuable guidance throughout the process. This goes a long way in the sale of your small business proceeding professionally.

Invest Proceeds From the Business Sale

Investing the revenue from the sale of your small business can be complicated. A wise option is to seek the advice of a professional financial advisor. They can help you navigate the following: 

Options for investing earnings. You have a wide selection of investment options, including traditional investments, alternative investments, or tax-advantaged accounts. A financial advisor can help you make the best choice. 

Tax-efficient proceed investments. Your earnings from the sale of your small business should be invested using the most tax-efficient strategy possible. Good financial advisors are well-versed in strategic ways to invest money and simultaneously reduce your tax bill. 

Earnings availability. It’s so important for the money you earn to be invested so it’s there when you need it. A financial advisor knows which type of investments allow you to access your hard-earned earnings.

Partner With a High-Quality Financial Advisor

Professional financial guidance is key to running a small business successfully and maintaining a personal life at the same time. At Oak Capital Financial Advisors, we offer services that help you lessen the financial part of your business so you can get back to living your life. 

If you’re interested in partnering with an experienced, reliable, and responsive financial advisor that puts your best interests first, get started by calling 225-416-7373 or emailing [email protected].

Fun Stuff!

This week, we want to share the book we chose for our top recommendation, our favorite quote, and exciting upcoming events. 

Book Recommendation: Same as Ever by Morgan Housel. In this well-written book, the author deftly discusses transforming hindsight into foresight. 

Quote: “The dead outnumber the living…fourteen to one, and we ignore the accumulated experience of such a majority of mankind at our peril.” — Niall Ferguson 

Upcoming Events

Mardi Gras Open House

Join us for coffee, king cake, and a Mardi Gras celebration.

January 10th, 2024, 2:00 p.m. – 4:00 p.m.

Attire: casual/Mardi Gras

Valentine’s Day Open House

Join us for coffee, sweets, and love.

February 14th, 2024, 2:00 p.m. – 4:00 p.m. 

Attire: casual/Valentines

Open houses are at our office:

Oak Capital Financial Advisors

4463 Highway 1 South Suite L

Port Allen, LA 70767

Everyone is welcome!

About Clay

Clay Elliott is Owner and Principal Financial Advisor at Oak Capital Financial Partners, a financial services firm based in Port Allen, LA, dedicated to providing local financial advice held to the highest standards. Since becoming a financial advisor in 2016, Clay prides himself on working toward his clients’ best interests as a fiduciary. He provides comprehensive financial planning and educates his clients to develop robust wealth management strategies to help them pursue their financial goals. He loves helping people become financially independent and enjoys seeing them live out their financial plan successfully.
Clay holds a bachelor’s degree in marketing from Louisiana State University as well as the CERTIFIED FINANCIAL PLANNER™ designation. He is also an Accredited Asset Management Specialist and a Chartered Retirement Planning Counselor.

Outside of work, Clay enjoys spending time with his wife, Claire, and daughter, Camille, playing tennis, fishing, and attending LSU sporting events. An active participant in his community, Clay is involved with The Emerge Foundation Center for Autism, the West Baton Rouge Chamber as an ambassador and member of the Governmental Affairs Committee, is a board member for the Louisiana Chapter of the Financial Planning Association and West Baton Rouge Small Business Council, and a member of Port Allen Rotary Club. He was also named Young Professional of the Year by the West Baton Rouge Chamber of Commerce. To learn more about Clay, connect with him on LinkedIn.