A Financial Advisor is crucial to any successful business, to help determine how well the business is performing as well as to help identify and reach future goals. It’s usually the case for a financial advisor to earn on average of $100-200k, depending on the client base, but what does a financial advisor do?
Generally, the financial advisor will arrange to meet the client (either an individual or representative of a business) to discuss the company’s current situation. From here they will establish how their finances are performing and identify strengths or areas of weakness. The advisor will normally look at details such as outstanding debts, revenue created by the company as well as overall profits and assets.
From here the advisor will discuss with the client what their goals are over the long and short term (for example over the coming months or years). Examples of goals may be to generate enough capital to acquire another company or to find ways of the company saving money by performing more efficiently. The advisor will plan how these goals can be reached and discuss the methods to use, it is their job to ensure these methods are low risk. Common methods used by financial advisers are setting up insurance plans, recommending stocks, bonds and other services such as capital loans. Some financial advisers can make commission of the sale of products so it is recommended to check beforehand if using one, as whilst most advisers are out to give the best advice they can, sometimes commission based advising can allow the financial advisor to have a certain bias towards particular products.
Usually it is common for the advisor to meet their client around twice a year, though this can vary greatly between clients and their needs. With each follow up meeting they can discuss previous goals and over time will build a good understanding of the client and their business situation. In the beginning work may be hard but as a solid client base is built the job becomes a lot more rewarding, it is very possible to become a financial advisor with enough hard work and knowledge.
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