Toolbox: Investment Services And Your Business

Filed Under: Banking, Toolbox Articles

Small businesses may think they don’t need the services of an investment professional, but businesses of all sizes should consider their expert support.  Business owners are already tackling a monumental amount of work, from the day-to-day operations and personnel issues to growing sales and just putting out fires. A little help from a sharp outside eye can be extremely advantageous. Here are just a few of the services they can provide.

Business Valuation

Putting a dollar figure on the value of your business is obviously a complicated process. But it’s necessary if you come to a point where you’re ready to sell the business, merge with another, or possibly even when seeking equity. An outside advisor has the experience and the tools to comprehensively evaluate all aspects of the business. This can include the company’s management, capital structure, future earnings and the market value of its assets.  The fee you pay for this deep-dive analysis can pay big dividends in the end.

Employee Retirement Plans

Many small businesses don’t think they’re large enough to have an employee retirement plan in place, but they may not understand that there are options for even the smallest of businesses.  An advisor can work with you to determine how much you want to spend, the depth of the program you want to offer and the options available.  Retirement benefits can vary widely and have many nuances, and it’s a timely and complicated process to do the research. Having a professional who has the knowledge and experience will help you land on the most suitable plan for you. 

Employee Retention

A company is only as good as its employees.  And in today’s competitive workforce climate, benefits and flexibility are key drivers.  If a candidate is deciding between offers that are otherwise equally desirable, benefits are often the deciding factor.  A consultant can help you set up not only a retirement plan, but other compensation incentives, which will help attract top talent. 

Other Resources

A good financial advisor will be there to help you make smart decisions throughout the life of your business, from infancy to growth to transition. Examples of other services they can provide include support for corporate cash management, succession planning, risk management, and executive compensation. 

The Bottom Line

Seeking outside professional help for some key areas of your business just makes good sense.  Many clients are surprised to know that their community bank can provide all of these services, in addition to the customary financial accounts they’re accustomed to.  Talking to your banker is a great way to get started, but whether you utilize your bank or an independent advisor, businesses of all sizes can benefit from meeting with an investment services executive. 

Allyson Brainson is Vice President, Small Business Relationship Manager for The Cooperative Bank of Cape Cod