Are you setting up an eCommerce business? Don’t forget to get a financial advisor to help you with your eCommerce business setup.
While having an eCommerce business essentially automates your profits, it’s also easy to overlook specific fees, taxes, and other expenses that may add up without you noticing.
Financial advisors help you manage your money and reach your financial goals for your business through financial planning, budget guidance, and other services. There are various types of financial advisors to match your specific financial situation and needs. This article will run you through what you need to consider when looking for the ideal financial advisor for your business.
What Type of Financial Advisor Do You Need?
You can choose from various types of financial advisors such as:
Robo-advisors
These are low cost and convenient as you only have to answer questions online, and a computer algorithm will build an investment portfolio for you.
Robo-advisors have fees as low as 0.25 per cent of your balance and little to no account minimums.
These are ideal if you are starting and can’t afford a complete financial plan.
Online Financial advisors
This is a step above robo-advisors as it is still online, but you get virtual access to human financial advisors who can customise your financial plan for you.
These financial advisors can make comprehensive plans for you, answer any questions you may have, and offer you more services than robo-advisors.
These typically cost less than a traditional financial advisor and have varied minimums.
Traditional financial advisors
These are certified financial planners who often also have credentials in stocks, investments, and wealth management.
These financial advisors come with higher costs and minimums. They are ideal if you require specialised services, are in a complex situation, or simply want to meet your financial advisor in person.
What Services Do You Need?
If you simply need help managing investments in a streamlined manner, a robo-advisor may work best for you. They are cost-efficient and have lower minimums. However, if you need a more personalised plan for your complex financial situation, you may need a human advisor, whether that’s online or traditional.
You may also want to take advantage of other services, such as online planning services and impact investing services.
How Much Is Your Budget?
Although financial advisors are known for being costly, there are now options that can suit any budget. Here are the usual cost levels you would encounter:
An annual fee of 0.25-0.50% of your balance for robo-advisers
Online financial advisors charge either a flat subscription fee, a percentage of your assets, or both. The usual percentage charge is around 0.89 per cent of assets annually, while the annual subscription fee may start at $1,200.
Traditional advisors also charge a percentage amount which is usually at 1% of assets managed. They may also charge a flat fee, hourly rate, or retainer fee.
Is the Financial Advisor Credible?
Make sure to check the records of the company or financial advisor you are considering. You can check their form ADV or the form they register with the Securities and Exchange Commission (SEC) and state security authorities.
This form will outline their service charges, fees, possible conflicts of interest, and past disciplinary actions, if any.
Conclusion
Having an eCommerce business advisor can help you plan and achieve the financial goals for your business. Given that financial advisors are available with a wide range of services and rates, it is crucial to choose the best fit for your business.
Are you looking for an eCommerce consultant in Perth to help you set up your eCommerce business? We at The Ecommerce Accountant specialise in assisting online entrepreneurs in planning and implementing a profitable eCommerce business. Head on to our website to book a free strategy session!