Why Every SME Needs a Financial Advisor

Small businesses, startups, and MSMEs in India have lots of ideas and energy. But just having ideas is not enough. Every business needs a financial advisor to help manage money, plan for the future, and grow safely.

A financial advisor (or certified financial planner) is like a coach for your business money. They are also called a wealth advisor, business financial planner, or corporate finance advisor. They guide your business to make smart money decisions.

What a Financial Advisor Does

Many businesses focus only on daily cash and ignore long-term plans. A small business advisor shows the bigger picture.

• You know your product.
• A financial advisor knows money.
• They help you plan and grow your business safely.

Why You Need One

1. Use Money Smartly

A corporate finance advisor shows the best ways to spend money on machines, staff, or new projects.

2. Protect Your Business

They help your business stay safe from problems like supply issues, market changes, or tax rules.

3. Help With Loans and Investors

An investment consultant helps get loans or investors. They make your business look strong.

4. Save Taxes

A financial mentor plans your money so you pay less tax legally.

5. Plan for the Future

A wealth advisor helps you separate personal money from business money and plan for retirement.

Important Numbers About Indian SMEs

• 42% of 63.5 million MSMEs have trouble getting bank loans.
• SMEs make over 30% of India’s GDP.
• In 2024, 196 SME IPOs raised ₹6,095 crore.
• Bank loan problems (NPA) for SMEs dropped from 6.8% to 4.5% in a year.

These numbers show why a financial advisor is very important.

Real Example

A textile business in Tiruppur had profits but struggled with loans and taxes. A business financial planner helped them:

• Reduce loans by 15%
• Use bill discounting (TReDS) instead of old loans
• Save money with smart tax planning

This freed money to buy new machines and grow exports.

Expert Opinion

“Many Indian SMEs grow fast, but owners don’t always know about money. A certified financial planner acts like a CFO, turning numbers into smart plans.”
– Financial Advisor

Future of Financial Advisors

Financial advisors are using more technology:

• Hybrid Consulting: They combine finance, tech, and rules in one service.
• Digital Tools: Use AI and data to predict growth and risks.
• Sustainability Advice: Help businesses follow eco-friendly rules to get investors.

This helps businesses grow faster and safely.

FAQs

Q1: Are financial advisors expensive?

No. They save money with smart planning, better funding, and lower taxes.

Q2: CA vs financial advisor – what’s the difference?

CAs handle taxes and audits. Financial advisors plan for growth, investment, and money.

Q3: When should a startup hire one?

Early, before fundraising or big growth plans.

Q4: Can they help with retirement?

Yes. They plan your personal wealth separately from business money.

Q5: Do profitable businesses need an advisor?

Yes. Advisors make sure profits last and the business grows safely.

Q6: What services do financial advisors give?

Loans, investments, fundraising, tax planning, and business growth.

Q7: How do they reduce taxes?

They plan salaries, benefits, and investments to use all legal deductions.

About LawCrust

LawCrust Global Consulting Ltd. delivers cutting-edge Hybrid Consulting Solutions in Management, Finance, Technology, and Legal to ambitious businesses worldwide. Recognised for our cross-functional expertise and hybrid consulting approach, we empower startups, SMEs, and enterprises to scale efficiently, innovate boldly, and navigate complexity with confidence. Our services span key areas such as Investment Banking, Fundraising, Mergers & Acquisitions, Private Placement, and Debt Restructuring & Transformation, positioning us as a strategic partner for growth and resilience. With an integrated consulting model, fixed-cost engagements, and a virtual delivery framework, we make business transformation accessible, agile, and impactful.

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