What Does a Business Financial Advisor Do? (And Do You Need One?)
- Will Grant
- Jul 7
- 11 min read
Updated: 2 days ago
A business financial advisor isn't someone who tells you how to run your business. Instead, a business financial advisor is someone who helps you understand how your business fits into the bigger picture of your financial life.
A business financial advisor helps business owners integrate their company into a comprehensive financial plan that covers retirement, tax strategy, estate planning, and risk management. A business financial advisor doesn't advise on day-to-day operations but instead focuses on how the business supports the owner’s long-term personal and family goals.
Ultimately, they serve as a strategic partner, seeking to ensure the financial aspects of the business align with the owner's life priorities and future plans.
Will Grant is a Senior Wealth Manager with 360 Financial. He earned a Bachelor of Science degree in Finance from Miami University and holds his Series 7 and 63 licenses through LPL Financial and his 65 license through 360 Financial.
Bridging the Gap
As financial advisors who work with business owners, we’re not forecasting our clients’ markets or advising on operational decisions. Instead, we bridge the gap between the business and your personal goals.
That bridge includes helping business owners in the following ways:
Set up and evaluate retirement plans
Navigate risk management
Plan for business owners' legacy post-sale
Integrate the business into broader financial strategies
Assist with strategic tax planning (and review income tax return yearly)
Guide the estate planning process
Coordinate with other professionals (like CPAs and estate attorneys), seeking to ensure all aspects of the financial plan are aligned
Create a financial plan that has a high probability of success, using simulations and stress-testing for various scenarios (we call it the LifeWealth Plan at 360 Financial)
Monitor and adjust plans over time as tax laws, life stages, or business conditions evolve
Help business owners prepare for major transitions, such as selling the business or succession planning
Provide guidance on college savings, insurance, and cash flow planning
As a business owner, you're sprinting through life with what may feel like 100 spinning plates at your fingertips.
Whether you're growing a business or planning your exit, you're probably not sitting around reading up on the finer points of personal financial planning or investment management. Much of your wealth may be tied up in your business. But that doesn't mean you can't diversify.
Table of Contents
Who’s Looking Out for You?
So if you're a business owner, you represent a major part of the US economy, helping families provide for their children and retire comfortably.
You may have started your company from scratch or taken over the family business. Either way, you’re the engine, and everyone relies on you.
You're the one looking out for everyone else, but who's looking out for you?
Who’s thinking about your retirement? Or your child’s college fund? Or what happens if you’re not around to run things?
That’s where a business financial advisor comes into play. You need someone focused on your bigger picture. Someone who is working to ensure your personal financial goals aren't neglected while you're building and scaling a successful company.
Business Coaches vs Business Financial Advisors
There’s a clear distinction between a business coach and a financial advisor.
A business coach might help you manage a difficult customer or scale into a new service.
Meanwhile, a financial advisor with expertise in helping business owners will focus on the four pillars of financial planning:
Retirement and investment planning
Estate planning
Tax planning
Risk management.
Business owners spend so much of their time focused on the business. They need someone thinking about retirement, college savings for their kids, or what happens to their family if something happens to them.
A business coach isn’t equipped for that. That’s where business financial advisors and wealth managers come into play.
When someone searches for a "business financial advisor," they’re often looking for a partner who can help align business success with long-term personal financial freedom.
When Is the Right Time to Work with a Financial Advisor?
When should you start working with a financial advisor?
Honestly, at every stage of your business development.
If you’re just launching your business, you need to know if you’ve got enough cash to cover 6–12 months of expenses, how you’ll save for retirement, and how to handle health insurance now that you're on your own.
As you grow, your retirement plan may need to evolve. What worked when you were a solopreneur may not fit now that you have ten employees.
Down the road, your priorities shift. As you build a business with 30, 40, or 100 employees, you have different concerns and problems.
Maybe you’re thinking about selling to a partner, an employee, or even your children. That’s when we help you consider every option, run detailed simulations, and build a “LifeWealth Plan” that aims for a 90% or higher probability of success, which means that you can work towards your goals without running out of money.
If you're a business owner, there's no wrong time to start working with a financial advisor.
Choosing the Right Financial Advisor for Your Business
As a business owner, it's vital that you find a financial advisory team that has experience working with business owners like yourself and can handle the complexities of your financial situation.
Ideally, you'll find a wealth management team with a broad base of experience and relationships with other financial professionals who can assist you as you scale or exit your business.
When selecting the right team, find an advisory firm that operates within a fiduciary environment and will be there to guide you through estate planning, exit planning, and retirement planning. Find out whether they do their investing in-house and if there are any hidden fees. In other words, make sure they aren't going to be selling you cookie-cutter high-cost mutual funds.
In addition, check the advisory firm's website to review client testimonials and case studies.
What Should You Look for in a Financial Advisor?
Here are a few things I tell business owners to look for:
Experience with business owners: You want someone who understands your world. At 360 Financial, we’ve helped business owners from start-up through to sale, and everything in between.
Fiduciary responsibility: Make sure they’re legally obligated to act in your best interest. Look for credentials like Certified Financial Planner (CFP®) and understand how the firm is structured.
Someone to be your quarterback: You're busy. You need someone who can coordinate with your CPA, lead estate planning discussions, and monitor your financial plan so it stays current.
Financial planning isn’t static. Your goals will change, tax laws will shift, and your life circumstances will evolve. Having someone who’s monitoring your plan (and adjusting it accordingly) is mission-critical.
What Are the Biggest Red Flags to Watch Out for When Interviewing Potential Advisory Firms?
One of the biggest red flags to watch out for when vetting a financial advisor is when an advisor spends most of the meeting talking about themselves.
At 360 Financial, our first meeting is about you. We aim to spend 80% of the time listening. We need to learn about your family, your business, your goals, and where you need the most support. If we don't understand you, how can we help you?
Your first meeting with an advisory firm shouldn't be a sales call. Instead, an advisor should do their best to understand your challenges and goals.
If someone isn’t trying to understand what it’s like to be in your shoes, they’re probably not the right fit.
What Does It Cost to Work with a Financial Advisor?
There are a few different models out there.
A fee-only advisor charges a flat fee or a percentage of assets under management (AUM). They don’t earn commissions from selling financial products.
This structure helps reduce conflicts of interest because their compensation isn’t tied to pushing a particular investment or insurance product. That’s the model we follow at 360 Financial.
A fiduciary is legally required to act in your best interest. Not all financial professionals are fiduciaries, so it’s important to ask. If someone isn’t a fiduciary, their recommendations may meet a lower “suitability” standard, which isn’t the same as doing what’s best for you. At 360 Financial, we are fiduciaries.
Then there are commission-based advisors, who get paid when you buy certain financial products through them. While some are well-intentioned and knowledgeable, the model can create incentives that don’t always align with your long-term goals.
Our belief is simple: You should know exactly what you’re paying, what you’re getting, and who your advisor is really working for.
Common Financial Advisor Fee Structures
Fee Structure | Typical Range | Notes |
AUM (Assets Under Management) | 0.5% – 2% annually | Fees often decrease as assets increase; this includes ongoing management. |
Flat Fee | $1,000 – $5,000/year | Usually does not include ongoing investment management. |
Hourly Rate | $200 – $400/hour | Best for DIY investors or specific financial questions. |
Read More: What Are Appropriate Financial Advisor Fees?
Why Business Owners Benefit from Financial Planning
When you own a business, your financial life is more complex than most.
Having a solid financial plan in place isn’t a luxury. It’s a necessity.
A strong plan gives you confidence that you’re building toward something bigger than just a profitable year. A strong financial plan aims to ensure you can take care of your family and eventually step away from the business without uncertainty hanging over your head.
Financial planning brings clarity.
It helps you make decisions with purpose, whether you’re hiring, expanding, saving for college, or planning your exit strategy. And when life throws curveballs (as it always does), having that plan in place makes it easier to adapt without losing momentum.
You’ve worked hard to grow your business. A well-crafted financial plan seeks to ensure your success translates into long-term stability and freedom for you and the people you love.
How a Financial Advisor Can Help You Plan for Retirement Succession and Exit
One of the most pivotal moments in a business owner’s life is stepping away.
Whether it’s through retirement, succession, or the sale of the business, it’s not just a financial decision. It’s deeply personal.
That’s why we start early.
We help you explore your options: Do you want to pass the business to a family member? Sell to a partner or key employee? Take it to market? Each path comes with different tax, legal, and emotional implications.
We coordinate with your attorney and CPA, run financial simulations, and model out various scenarios, aiming to ensure your plan supports your lifestyle goals. We also prepare your personal finances to transition from business income to investment income, so you know you can retire with confidence.
Succession planning isn't just about handing off responsibilities. Instead, it's about creating a future that works for everyone involved, including your team, your family, and you.
How Financial Advisors Can Save You Money
Financial planning isn’t just about growing your wealth.
It’s also about preserving it and using it efficiently. A good advisor should more than earn their keep by identifying ways to reduce waste, lower taxes, and increase profitability.
For example, we may uncover opportunities to optimize retirement plan design—shifting from a basic SEP IRA to a custom 401(k) with profit sharing or a defined benefit plan. That can increase tax deductions and allow for higher contributions for the owner.
We also evaluate your insurance coverage to make sure you're not overpaying or underinsured.
On the investment side, we help manage risk and costs by using tax-efficient strategies, rebalancing portfolios, and harvesting tax losses when appropriate.
In short, we bring structure, strategy, and oversight—so your money is working smarter, not harder. Every dollar saved or redirected wisely is another step toward your long-term goals.
Common Questions
What is a business financial advisor?
A business financial advisor helps owners align their company’s success with their personal financial goals. They focus on retirement planning, tax strategy, estate planning, and risk management—guiding you through life stages while coordinating with CPAs and attorneys. They don’t run your business; they make sure it supports your life.
What are the main duties of a financial advisor?
A financial advisor helps clients create and maintain a comprehensive financial plan. This includes retirement and investment planning, tax and estate strategies, and risk management.
For business owners, they also coordinate succession and exit planning, seeking to ensure your business fits seamlessly into your personal financial life.
Is it worth paying a financial advisor?
Yes—if you want proactive, personalized guidance that evolves with your life, paying a financial advisor is worth it. A good advisor brings structure, monitors your progress, and helps you avoid costly mistakes.
They often uncover tax efficiencies, optimize retirement plans, and serve as your financial quarterback, coordinating with other professionals to keep your whole plan aligned.
How much does a business financial advisor cost?
Costs vary, but most charge a percentage of assets managed (typically 0.5%–2%), a flat annual fee, or hourly rates. Fee-only, fiduciary advisors avoid commissions and prioritize your best interest.
The key is understanding what services are included and how those align with your goals and financial complexity.
The greater the investable assets, the lower the AUM fee.
Does a financial advisor help with debt management?
Yes, a financial advisor can help with debt management, especially when it's part of a larger financial strategy. While they may not act as credit counselors, they can analyze your current debt, prioritize which to pay off first, and create a plan that balances debt reduction with saving, investing, and maintaining cash flow.
For business owners, this can also include evaluating business debt and ensuring it’s structured in a way that supports long-term growth and financial stability.
Does a business financial advisor help with personal and business finances?
Absolutely. A business financial advisor bridges the gap between your company and your personal financial life.
They work to ensure your business success translates into personal wealth, helping you with retirement planning, tax strategy, insurance, and legacy goals, so your finances are aligned and working toward the same objectives.
Do financial advisors help business owners with financial projections?
Yes. Financial advisors use projections to model different outcomes and build plans with a high probability of success.
Whether you're planning for retirement, a business sale, or major expenses, they run simulations using market and inflation scenarios to give you clarity and confidence in your financial decisions.
Final Thoughts
As a business owner, your financial health is inseparable from your business.
While you’re focused on growth, team management, and daily operations, it’s easy to overlook long-term personal financial planning. That’s where many small business owners fail.
In addition, not many financial advisors understand the complexities of business ownership. If you're working with a personal financial advisor who doesn't have experience with business succession planning or high-level risk management, you are likely not well positioned for the future.
Business owners need to work with an advisory team that sees the full picture and has a clear process and success path.
From aligning your business plan with your personal financial goals to preparing for business succession, the right advisor helps you preserve what you’ve built and plan for the future.
You deserve to have someone looking out for you and working with a goal to ensure your financial future is secure.
If you’re a business owner, you already know how much is on your plate. You’re managing your company, supporting your team, and trying to safeguard what you’ve built.
But don’t forget to invest in the one person everything else depends on: you.
You don’t need to figure it all out alone. A business financial advisor can help you build the future you’re working so hard for.
Other Articles and Guides
About 360 Financial
360 Financial is an independent wealth management firm with a team of specialized financial advisors and financial planners. As fiduciaries, 360 Financial’s advisors provide services to business owners, entrepreneurs, and professionals. We help investors with sudden wealth, retirement planning, tax planning, estate planning, and business financial planning.
Headquartered in Minnesota, we serve investors across the US with online and in-person wealth management and financial planning services.
Content in this material is for general information only and are not intended to provide specific advice or recommendations for any individual
This information is not intended to be a substitute for individualized tax advice. We suggest that you discuss your specific tax situation with a qualified tax advisor.
There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.
Asset allocation does not ensure a profit or protect against loss.
