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 Too many of us are not living our dreams because we are living our fears.

Financial planning is one of the most important pillars of any company that seeks a good performance. That is why so many companies are hiring financial advisory services and how this market has become a great opportunity for entrepreneurs.

But how does a company know when it is time to seek help? And what is the role of a financial advisor in this context? In this article, we will explain more about the following subjects:

What is the importance of financial advisory services?

What are the main services of a financial advisory company?

What is the profile of a financial advisor?

How to start a financial advisory company?

What is the job outlook for a financial advisor?

The word advisor comes from “receive advice from”, so financial advisory services are the ones that will determine financial problems, propose solutions and implement a project to improve their client’s profit results.

The first step to a financial advisor is doing a diagnosis through data analysis and interviews with the involved. This part is the main point of a financial planning process, which will need more time and resources.

We can compare the financial advisor as a doctor: you go to the doctor and report your problems, he will diagnose the cause of the problem and indicate the most appropriate solution, just like a financial advisor.

If you are interested in learning more about consultancy, check out our exclusive e-book on the subject!

To achieve success in a business or your personal life, a good financial plan is key.

A professional financial advisor is so important because it can change the way you manage your finances, optimize your resources, make the best investments, and, consequently, increase profitability.

Besides, we can understand which direction the company is following, and then change its path or not, to enable its full potential.

The majority of companies are only concerned with observing cash flow, but these indicators may not represent whether the company is making a profit. It is part of a financial advisor’s job to understand the profitability of a company.

When a good financial advisory firm is hired and the company commits itself to implement the improvements, the investment is fully recovered and the company’s results keep increasing over time.

A financial advisor is a professional who has knowledge in finance and uses that knowledge to help other people and companies. The advisor can work autonomously or be part of a company that provides advisory.

The financial advisor or financial planner is most often hired to manage income or expenses. He must work strategically to maximize the results of the company in question.

In addition, professionals can work in investment management. However, the investment advisor will never make the investments for you or your company, instead, he will only show you the best way.

The financial advisory can be business, for large and small companies, or personal. Check out the services of each one:

It is responsible for improving the structure and financial management of the organization, solving financial problems.

Economic and Financial Diagnosis: shows what happened in the company's past, analyzing cost, profit, and cash flow;

Financial Planning: plan the future of the company according to defined sales strategies and forecasts;

Financial Management: implements improvements in day-to-day management through tools and analysis of financial indicators;

Cost-Benefit Analysis: analyzes risks of new investments according to scenarios and expected returns;

Pricing: identifies the best selling price of the product, considering costs, contribution margin, and the market;

Valuation: the process of defining the financial value of a company, analyzing its ability to generate future cash;

Financial Audit: review financial statements, the financial system, records, transitions, and operations of an entity;

Performance measurement: analyzes how the organization's costs behave, to identify and correct inefficiencies, improving management.

Its objective is to improve the financial organization, investment strategy, and change personal habits.

Financial advice/coaching: helps the client to achieve their personal financial goals, seeking reflections on consumption and its consequences;

Budget control: support the person to control their household budget and make sure they can make ends meet on the basics, food, housing, and health care;

Debt management: the goal is to make people settle their debts, solving problems caused by these debts through assertive planning;

Family financial management: manage a family's incomes and assist in cash management, planning costs like insurance, education, among others;

Investment Planning: supports the person to know what are the best options to invest money at the moment, and so obtain a return in the future;

Retirement Planning: set financial strategies, investments, and complementary ways to ensure the client's future financial stability. 

Estate Planning: it is the process of organizing one's financial situation during life, based on the event that a person becomes disabled or dies.

There are two types of financial advisors: external and internal consultants. Next, we will present the characteristics of each one.

It is a person who works autonomously, without holding a position in a company:

This financial advisor works for a company as an employee:

Direct contact with internal processes in the company

Greater access to people and group of clients

Have financial stability through their salary

What attributes do you need to become a great Financial Advisor?

Knowledge: have a degree in finance or a related area;

Intellectual curiosity: keep updated with good market practices;

Analytical capacity: it is necessary to analyze in detail the quantitative and qualitative data;

Leadership: a financial manager needs to be involved in decision-making and solution execution;

Communication: communicate well with clients and other areas of the company;

Efficiency: is part of their job to deliver quickly and assertive results; 

Discipline: everything needs to be done with a routine so that this company doesn't waste time;

Innovation: to create good solutions, be open-minded and creative is very important;

Ambition: after all, the main goal is to seek financial growth and improve the company's performance.

So, do you have the profile to be a financial advisor? Working on these traits can help you get there!

To start a financial advisory company you can follow the step-by-step guide:

Determine your target audience, wealth management

Keep in mind the main resources needed and their costs

Understand the legal requirements in your region, as well as fees.

Now you have done those five steps, learn how to gain potential for your company:

The financial advisor has a lot of job opportunities during the crisis, as the hiring of financial advisory services increases with the worsening of the companies' results. 

For a better understanding, look at the chart below:

During a crisis, companies increasingly seek for:

The average salary of a financial advisor is $89,330, and it can go up to $157,020 according to usnews data. You can charge your services based on assets under management (AUM), for example.

Are you ready to start your journey as a financial advisor? Becoming a Green Belt in Lean Six Sigma can help you on this path!

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