Why Should You Hire an Advisor?

Financial complexity may or may not be your area of expertise—but even if it is, why not have an expert on your side? You could save thousands…but be sure to do it right.


Once your entrepreneurial business starts thriving and you have extra cash to expand your operations, knowing what to do and how to spend it wisely is key.

Many of us will be faced with common conundrums like these:

Should I use my own cash? Should I apply for a loan? What kinds of facilities are available to me and my business?

These are general questions, without simple answers. A business-owner’s time is better spent doing what they do best—running their business.

Another big factor inevitably on a business-owner’s mind is the right field in which to expand. They can choose to:

  1. Grow their business by expanding their team and its capabilities, thereby expanding their market reach and the number of customers served.
  2. Choose to branch out into related business activities.
  3. Opt for something totally unrelated, thereby assuming a higher level of risk.

The reasons for hiring a financial consultant are numerous, but the two most important factors are as follows:

  1. It is your hard-earned cash at stake.
  2. Consultants have worked on similar projects before, and (usually) have the relevant experience.

In the dynamic business world, it is much easier to hire a seasoned professional who can draw on their financial background and experience to help you get where you want to go in the most efficient and cost-effective way possible.

A GOOD CONSULTANT WILL HAVE FREQUENT MEETINGS WITH YOU—NOT ONLY TO KEEP YOU ABREAST OF HIS OR HER PROGRESS, BUT ALSO BECAUSE WITHOUT YOUR INPUT, HE OR SHE WOULD SIMPLY BE UNABLE TO DELIVER.

There are, of course, a few things to keep in mind before hiring a consultant. Personally, I would steer clear of consultants belonging to banks and brokerage firms, if possible. They usually work on a commission basis, and are likely to have their companies’ bottom line and personal commissions at heart.

Once you have narrowed down your options to a handful of consultants, keep in mind the following guidelines.

What am I paying for?

Request a breakdown of their services, and learn exactly what you are paying for. Hidden costs are a great source of income for consultants, unless you pinpoint them—so do point them out if you notice them!

Read the fine print.

Do not let the financial jargon or the size of your contract turn you off from reading it. Go through it thoroughly to avoid any setbacks and disputes in the future.

Maintain a good rapport with your advisor.

If the consultant understands that his or her role is of mutual benefit to both of you, and that the success of your business will lead to repeat business for him or her, then the consultant is much more likely to put in greater effort to make their plans—and your business—a bigger success.

Be hands-on—all the time.

You simply cannot afford to be uninvolved at all stages of your work with your advisor. A good consultant will have frequent meetings with you—not only to keep you abreast of his or her progress, but also because without your input, he or she would simply be unable to deliver.

Hopefully, with all of the above taken into consideration, you and your advisor will be able to help your expansion ideas crystallize in the most effective way possible.

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