5 Key Traits to Look for in a Financial Advisor

Choosing the right financial advisor is a decision that carries significant weight. Many businesses have felt the strain of financial stress, whether due to unexpected slow-downs, supply chain disruptions, or rapid growth. If you find yourself in such a situation, you might be urged or required to seek professional help. But how do you know who to choose? By cost? By personality? What qualities should you prioritize? It’s challenging to make the right choice if you’ve never faced this situation before and the stakes are high.

 

The 5 Qualities


Core Values

A good financial advisor devises strategies to maximize the value of a company and communicates these strategies clearly to each stakeholder. This proactive approach minimizes unnecessary conflicts, saving time and money that can be better spent on value-creating activities. When evaluating potential advisors, inquire about their experience with and approach to various stakeholders, such as vendors, customers, employees, and lenders/investors. Ensure their values align with yours.

Experience

Navigating financial challenges involves more than just financial models and analysis. A reputable financial advisory firm should have a wide range of business competencies and a proven track record of successfully guiding businesses through challenges similar to yours. Ask potential advisors about their experience with situations like yours and request references. Additionally, a team with real-world experience can empathize with your challenges and develop the best path forward. Make sure to ask about the experience of the individuals who will be working on your project.

Capacity

Ensure your advisor has the capacity to support your business within your required timeframe. Clearly articulate your expectations and request a written scope of work and timeline. Ask how they would handle an accelerated timeline or an expanded scope and whether any additional resources would be brought in outside of the advisory firm’s normal staff. Confirm their approach to resource management and how they prioritize client needs to ensure you receive the attention and support necessary for success.

Ability to Listen and Understand

A financial advisor’s ability to listen and understand your needs is crucial. They should be willing to listen to the issues you are facing and then develop a comprehensive plan to address these issues. Do they ask probing questions and listen to your answers? Do they communicate in a way that is easy to understand and relatable? An advisor who listens well can tailor their strategies to your specific circumstances and simplify complex financial concepts, ensuring you are fully informed and confident in the decisions being made.

Seeing the Bigger Picture

You need a financial advisor who can frame issues within the broader context of your operations and mission. What other issues are present? What sub-issues exist? What are your goals? How will the issues impact other stakeholders? Your advisor should ask questions that demonstrate a focus on overall business success, not just immediate problem-solving. By seeing the bigger picture, an advisor can identify potential risks and opportunities that might otherwise be overlooked, providing a holistic approach to navigating financial challenges and driving sustainable growth.

 

Choosing the right financial advisor can be daunting, but remembering these five qualities can help you select an advisor who best represents your interests and aligns with your core values.

 

At DWH, we understand that every business faces performance challenges at some point. You are not alone. We’re here to help. Reach out to us for a conversation on how we can assist you in thriving, not just surviving.

 


This post is from the DWH archives
Original content written by Heather Gardner
hgardner@dwhcorp.com | LinkedIn
Edits made by Jordan Gunn

All companies experience change.
Plan for it with us.

 

 

If you found this topic interesting, our strategic partner, JACO Advisory Group published content you may find relevant as well: 4 Qualities to Look For When Selecting a Financial Advisor to Super Charge Your Business Results

5 Qualities to Look for When Choosing a Financial Advisor

Over the past 18 months, many businesses have experienced financial stress.  This may be due to COVID-related slow-downs or shut-downs, supply chain disruptions, or even from tremendous growth.  If you have found yourself in this position, you may have been urged to or required to get some help and may have been provided a list of names to call.  But how will you know who to choose? By cost? By personality? What qualities do you look for? It can be difficult to know what you need if you have never been in this situation before and the stakes are high.

 

The 5 Qualities


Core Values

A good financial advisor devises strategies to maximize the value of a company and proactively communicates a clear strategy and its benefits to each stakeholder. This will minimize unnecessary conflicts, which erode value through the consumption of time and money that could otherwise be allocated to value-creating activities. Ask potential advisors how they work with other stakeholders such as vendors, customers, employees, and lenders/investors.  Try to determine the advisor’s experience and likely credibility with each of these stakeholders.  See if their approach aligns with your values.

Experience
Navigating financial challenges involves more than financial models and analysis. A financial advisory firm should possess a breadth of business competencies and experience successfully guiding the business through the specific challenges you are experiencing.  Ask potential advisors about their experience with situations such as your own.  Ask for references.  Also, a financial advisor who has a team with real-world experience allows them to empathize with your challenges as they assist in developing and executing the best path forward.  So, make sure you ask about the experience of the people who will work on your project.

Capacity
Speaking of team, it is important to make sure your advisor has the capacity to support your business in the time frame you need them to. Make sure you clearly articulate what your expectations are and ask them to provide you a scope of work and timeline in writing.  Ask the potential advisor how they would support you if the timeline needed to be accelerated or the scope expanded.  Ask them if any additional resources would be brought in that were not part of the advisory firm’s normal staff.

Ability to Listen and Understand
Your financial advisor’s ability to listen and understand rather than talk over you with a lot of material is important. Their ego should be left at the door. They should be willing to listen to the issues you are facing and then develop a comprehensive plan to address these issues.  Does the financial advisor ask probing questions and listen to your answers?  Does the advisor speak in a language that is easy to understand and relate to?

Seeing the Bigger Picture
You need a financial advisor who can understand and frame the issues within your broader operations and mission. What other issues are there? What sub-issues exist? What are the goals? How will issues impact other stakeholders? Are the recommended solutions an approach that is sensitive to all stakeholders? Don’t win the battle – win the war. Make sure your advisor is asking questions that show they are focused on the overall business success and not just solving the immediate issue.

 

Choosing the right financial advisor can be intimidating and overwhelming but remember the five topics described in this article when you meet with potential advisors.  This can help you select an advisor who will best represent your interests in a way that is aligned with your core values.

 

All leaders experience performance challenges at some point over the life of their business. You are not alone. We can help. At DWH, we’re here for you. Feel free to reach out for a conversation on how we can be of assistance as you focus on thriving and not just surviving.

 


This post was written by Heather Gardner
hgardner@dwhcorp.com | LinkedIn

All companies experience change.
Plan for it with us.

 

 

If you found this topic interesting, our strategic partner, JACO Advisory Group published content you may find relevant as well: 4 Qualities to Look For When Selecting a Financial Advisor to Super Charge Your Business Results