Why Your Small Business Needs a Financial Analyst

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By the very nature of what they are, small businesses necessarily have smaller budgets than large corporations that have millions to spend on investment strategies. In fact, most large companies have one or more financial analysts on the payroll full time. As a small business owner, you obviously can’t afford to pay six figure salaries and so you struggle along trying to determine how and when to make investments that can lead to increased profitability.

However, as a small business you can’t afford not to invest in a financial analyst so there must be a solution, right? There is, and that would be finding an independent financial analyst not associated with any financial institution, one that you know is looking out for your best interests and not the interest of the institution they are working with. What you need is an independent CFA.

Why a CFA?

You may be wondering why you need to consult with a Chartered Financial Analyst and that is a very good question. Usually a financial analyst would be a graduate of a masters in business administration program, perhaps with a major emphasis on finance. That is a good start and actually, one of the prerequisites of becoming a CFA. But a Chartered Financial Analyst is so much more than a professional with an online MBA.

It takes up to 4 years to become a chartered member of the CFA institute and these financial analysts are held to the highest code of ethics. If you are seeking investment advice that is tailored for your small business, this is the best way to be reassured that no other interests are concerned. A CFA has an obligation to ensure your interests, and your interests alone, are being served.

Why You Need a Financial Analyst of Any Kind

Finding a CFA you can work with in your area may not be possible, so at the very least you need a financial analyst who has the proper credentials. Anyone can offer investment advice but if you don’t want to throw good money after bad, make absolutely sure the person you are dealing with has a minimum of a masters degree in finance or business administration with a focus on finance.

Too many Ponzi schemes have made the headlines because, to put it frankly, there is an overabundance of scam artists who simply want you to invest in a certain stock or commodity in which they have a vested interest. Those letters after a person’s name tell you a story. Unless an analyst is a bona fide graduate of a masters program, you may want to consider looking elsewhere and always seek an independent analyst who is not affiliated with any funds they are advising you to invest in.

3 + 3 Equals 6 Letters You Can Trust

Knowing what to invest in or how much to invest is more than prescience. It takes years of study and experience to read the markets, and even then, it’s easy to err when forecasting the market’s movement. Remember, a person who has achieved an MBA is the expert to turn to if you want to run a profitable business, but if you want to make investments to grow that business, those extra 3 little letters assure you that the analyst you are talking to is both knowledgeable and board certified.

If at all possible, find someone with both an MBA and a CFA after their name and you’ll know they are well qualified to give the investment advice your small business needs. Three (MBA) plus three (CFA) equals 6 letters you can trust.

2 thoughts on “Why Your Small Business Needs a Financial Analyst”

  1. It is true that many small business and companies do not have an analyst. There are many reasons for not to hire somebody professional who can count and give you an exact number and solution for the business. Some of them do not know about the analyze value and their knowledge. Some of them just cannot afford, and there are few who think of themselves as experts.
    But with time even I have realized that if I want my small business to grow I have to hire somebody professional to get better results. Thank you for sharing interesting tips with us.

    • Hi SS,

      I agree that most small businesses probably do not need to hire a full time financial analyst especially if it’s a startup. But, in time, I feel that those services might be required if on a consultation basis only and eventually as a full time hire. Thanks for commenting.


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