There's no doubt that hiring a small business consultant can be an incredibly effective way to develop a plan for business growth. It allows you to leave your business's financial management and strategy in the hands of the experts so that you can focus on growing your business. However, for some small business owners, hiring a corporate financial consultant can be prohibitively expensive. There is typically an upfront setup fee of $1,000 to $3,000, a yearly fee of 1 to 2% of the total amount of money to be managed, and an additional hourly rate of $100 to $400 for each consulting session. These sessions typically last 2–3 hours. As you can see, despite the benefits, costs can add up. Fortunately, there are affordable alternatives that you can use until you are ready to hire a financial consultant for full-service financial management. Here are 2 budget-friendly alternatives to hiring a small business financial consultant.
Consider Hiring an Advice-Only Financial Consultant
If full-service financial management is too much for you at the moment, consider working with advice-only financial consultants. These consultants strictly offer financial advice for your business. They do not offer the additional products or complete financial management packages of a full-service financial consultant. Due to this, most advice-only consultants charge an hourly rate of $100 to $400 with no setup fees and no additional recurring fees. This allows businesses on a budget to shave thousands off of their financial advisory costs. In exchange, they will receive no hands-on financial management from the consultant. The business will be left to implement the advice of the consultant with no additional assistance.
Consider Using a Robo-Advisor
If the hourly rate of an advice-only financial consultant is still a bit too much for your budget, consider using a robo-advisor. A robo-advisor is an automated online service that uses sophisticated algorithms to guide your financial management and investment strategy. Different robo-advisors allow you to manage your investments, taxes, and retirement plan. While these services aren't quite as comprehensive as having a human advisor, they can be a cost-effective means of managing a basic financial plan for your business. Robo-advisors typically have small management fees of $100 to $200 a year, and some have no management fees at all. Most of these services also have no minimum cash requirement, so you can have them manage as little or as much money as you like.
While they are no replacement for hiring a full-service small business financial consultant, these services are flexible and affordable alternatives that can serve you until you are ready to make the leap.
For more info, contact a corporate finance consulting firm.