Disclaimer: This article is for informational purposes only and does not constitute financial, legal, or tax advice. Consult a licensed professional for personalized guidance. The information provided is general and does not account for individual circumstances. FinFinancial LLC does not endorse specific financial strategies or outcomes.

Business success and personal wealth go hand in hand — but many entrepreneurs struggle to manage both effectively. Most business owners spend the majority of their time working on building their company, leaving little room to think about their personal financial future.

Building and scaling a business is complex enough. Add personal wealth management to the mix, and you've got a real challenge. That's where financial advisors make a difference.

Financial advisors who work with entrepreneurs focus on connecting business performance to personal wealth and spot growth opportunities that boost profits and identify smart investment moves to increase net worth.

The right advisor becomes a strategic partner who helps transform business achievements into lasting personal financial security, achieving both professional and personal financial goals.

This article shows you how financial advisors help entrepreneurs build sustainable wealth while growing their businesses — and why you might want to consider working with one.

Common Financial Challenges Faced by Entrepreneurs

Running a business comes with serious financial challenges — and recent data shows just how tough it can be. A combined 58% of small business owners say they're struggling with economic conditions, inflation, and other money-related issues. That's a lot of stress to handle while trying to grow a company.

Let's break down the biggest financial challenges entrepreneurs face today:

1. Cash Flow Management. Money coming in doesn't always match money going out. And the impact can be brutal — 45% of small business owners have skipped their own paychecks because of cash flow problems. When customers pay late or unexpected costs pop up, it's hard to cover basics like payroll and inventory.

2. Budgeting Shortcomings. A good budget works like a GPS for your money. But many business owners wing it without one. This can lead to spending too much in some areas while neglecting others that could help the business grow.

3. Access to Capital. Getting money to grow isn't easy. 54% of small business owners had to use their personal savings to start their companies, and another 12% borrowed from friends and family. When you're maxed out on personal resources, it's tough to fund important things like marketing or new product development.

4. Inadequate Financial Forecasting. Looking ahead financially feels a bit like trying to predict the weather — you might get it right, but there's always uncertainty. Many entrepreneurs struggle with this, which can mean missing out on opportunities or being caught off guard by problems.

5. Tax Considerations. Taxes are complicated, and they're even trickier for business owners. You might be paying too much because you don't know about all the deductions available for small businesses. Or maybe you're worried about not setting aside enough for tax time.

These challenges can feel overwhelming, especially when you're dealing with them all at once. And with 22% of small businesses struggling to pay basic bills, getting professional financial guidance might be more important than ever.

The Role of Financial Advisors in Addressing These Challenges

Running a business takes more than accounting skills. You need someone who understands both the numbers and the bigger financial picture. And that's exactly why financial advisors make such a big difference.

Smart Financial Planning That Works for You

CFPs don't just crunch numbers. They work with you to create financial strategies that actually fit your business. They'll analyze your cash flow (which is often tricky for startups), help manage your budget, and make sure you're using your money in ways that make sense for your goals.

Spotting Problems Before They Cost You

Money problems can sink a business fast. A CFP keeps an eye out for financial risks you might miss — giving you time to fix issues before they become expensive mistakes. This means you can focus on growing your business instead of constantly putting out fires.

Making Growth Happen

Working with a financial advisor isn't just about protecting what you have — it's about building more. By teaming up with a CFP, you're connecting your business goals to real financial plans that work. And with new tech solutions, getting expert financial guidance is becoming easier than before.

Benefits of Hiring a Financial Advisor for Entrepreneurs

Making Sure Your Business Will Last (and Make Money)

Running a successful business means dealing with some tricky financial questions. That's where a good financial advisor comes in — they'll help you figure out if your business model actually works for the long run.

They'll look at:

• Your profit margins (and how to make them better)

• Where you stand in your market

• How to handle your cash flow so you don't get stuck

Speaking of profit margins — 7% to 10% is what most successful small businesses aim for. A financial advisor can help you hit those numbers by finding smart ways to cut costs or boost revenue.

Tax Strategies That Might Save You Money

Working with a financial advisor means getting smarter about taxes. They know all kinds of ways to reduce what you owe while building your wealth. Here are just a few examples:

1. Finding tax deductions and credits you didn't know about

2. Setting up your business structure in a way that saves you money

3. Using retirement accounts to cut your tax bill while saving for later

4. Understanding how to take advantage of qualified small business stock (QSBS), potentially up to 100% exclusion of tax on capital gains.

These and other strategies ultimately give you more resources to grow your business. And isn't that what it's all about?

A good financial advisor gives you the knowledge to make better money decisions. This is especially important for women entrepreneurs, who often face additional challenges in building and growing their businesses.

Entrepreneurship-focused Retirement Planning 

Small business owners often put retirement planning on the back burner. It makes sense — your income changes all the time, and there's always something more urgent to think about. But setting up a retirement strategy early can make a huge difference in your financial future.

A financial advisor can show you retirement options that work well for self-employed people. Take Solo 401(k) plans, for example. These work great if you're running the show on your own, and you can put away more money than you might expect. Or consider a SEP IRA — it's simpler to manage and lets you make tax-deductible contributions that could help reduce your tax bill.

And speaking of taxes, working with an advisor helps you find smart ways to save for retirement while keeping your tax burden down. They'll help you stay compliant with tax laws while making the most of available deductions.

Making Your Exit Plan Work for You

Thinking about leaving your business might feel far off, but having a solid exit strategy matters more than you'd think. A good succession plan does two important things: it protects what you've built and sets you up for a comfortable next chapter.

Financial advisors bring valuable perspective to this process. They'll help you figure out the best way to pass on your business, whether that means selling to someone else or keeping it in the family. They understand how different exit strategies affect your taxes, too.

They can also help you get a clear picture of what your business is worth. This comes in really handy when you're ready to sell or pass the torch. Knowing your true value puts you in a better position to get what you deserve for all your hard work.

Working with an advisor means you won't have to figure all this out alone. They've helped other business owners through similar transitions and can guide you toward decisions that make sense for your situation. You've put too much into your business to leave its future to chance.

Getting Your Time Back

Running a business takes a lot of energy. When you hand off your financial planning to an advisor, you get something precious back: time. 79% of clients are completely happy with just quarterly check-ins from their financial advisor. That's right — you don't need daily or weekly meetings to stay on track. A good advisor will handle everything and update you every three months.

When you're not buried in spreadsheets, you can think about new ideas, be a better leader, or focus on building customer relationships. Some entrepreneurs even manage to take a weekend off — with quarterly check-ins, you know your finances are handled without constant meetings or updates taking up your calendar.

The time you save adds up fast. And that's what working smarter probably looks like.

Final Thoughts

Building a business is tough enough without trying to handle all the money details yourself. A financial advisor can help you connect the dots between your business success and personal wealth — and modern technology has made working with them simpler than ever.

Most entrepreneurs spend so much time growing their companies that personal finances take a back seat. Financial advisors understand the unique challenges you face, from managing cash flow to planning your exit strategy. And working with one doesn't mean giving up control — it means having an expert in your corner when you need them.

FINNY can match you with financial advisors who understand what it takes to run a business while building personal wealth. These advisors work to create strategies that consider both your business goals and personal financial needs.

Get matched with a financial expert.