While all evidence suggests that SMEs have entered 2018 with a genuine sense of confidence, many are struggling when it comes to identifying adequate funding sources.
More specifically, just 41% of all UK SMEs have been able to access capital through their preferred funding route, while that have been able to raise cash have experienced considerable challenges in terms of meeting their investment plans.
This is a huge shame, as it means that despite retaining impressive levels of confidence in the economy, firms are unable to achieve their core growth expectations or pursue strategic investments. So, in this post, we’ll consider how effective wealth management can empower SMEs in the current climate and ultimately help them to achieve their financial goals.
What is Wealth Management and Why is it Important?
In the quest for funding, it’s easy for SMEs to become panicked in the current climate. This can lead to ill-advised decision making, which may in turn compel business-owners to sacrifice too much of the equity within their form in exchange for capital or simply shelve their investment plans.
Neither of these scenarios is beneficial, and it’s important to note that effective wealth management can bridge the significant gap between poor strategic decision making and the successful growth of your venture. In simple terms, wealth management is the process of leveraging financial experts who boast both fiscal and investment knowledge, in a bid to fully utilise your companies existing assets and raise capital that can be reinvested into its future development.
This can include a multitude of diverse services, ranging from basic investment advice and accounting to tax reforms and their pursuit of personal financial gains.
This comprehensive service can provide SMEs with clarity and assurance at the most opportune of times, and preferably before they have finalised, implemented or shelved their reinvestment plans. It is therefore a direct antidote to ill-informed decision making, and one that can slash operational costs, optimise the profitability of your business and identify innovative channels for reinvestment.
The Last Word – How Does Wealth Management Work?
Ultimately, service providers such as RSM connect SMEs with a knowledgable financial expert, who will serve as a single port of call that can help them to achieve their goals. Firms of this type also offer a host of specialist services outside of wealth management, including IT consulting, legal advisory and human resource assistance.
This can help to identify even more organic avenues of business growth, as well as contributing to a more cost-effective and holistic internal operation.
With the purpose and the mechanisms of wealth management laid bare, it’s easy to see how consulting with fiscal experts at a formative stage of your growth plans can reap rewards. This can certainly drive the long-term growth of your firm, by optimising your SME’s assets and ensuring that any subsequent reinvestment is strategic in its nature and capable of delivering a superior ROI.