The Top Five Strategies for Working with Small Business Owners

Nick FazioAdvisor Perspectives welcomes guest contributions. The views presented here do not necessarily represent those of Advisor Perspectives.

For workers and businesses alike, Atlanta is one of the hottest relocation destinations in the country – despite its relatively high cost of living and corporate tax rates. In keeping with its status as a bustling but complex market, I'm noticing an exciting trend among new small businesses here that has implications nationwide.

Small business owners cope with phases of development – from startup through growth and perhaps a sale – as they crop up, their last-minute efforts complicated by a lack of planning and due diligence and having their personal and business finances intertwined.

These days, however, many startup owners take a more strategic view of change management. Instead of waiting for broadly predictable events to unfold, they're acting early to ensure they're ready for whatever comes, whenever it comes.

I see this in the smart new ways startups are tackling the top five financial management concerns they face:

1. Raising capital

Small businesses are often capital-intensive, especially in the early years. This is a hard time in the life of a business, with owners often more concerned about securing capital – any capital – than worrying about obtaining the right kind of capital. The “underdog” stories we’ve all heard about entrepreneurs piling on credit-card debt to launch enterprises illustrate this point.

New business owners understand that determining optimal capital solutions calls for a deep analysis of their current assets, liabilities, and potential sources of financing to determine the best capital fit for the near- and long-term health of the business. Having this analysis on hand streamlines their capital-raising efforts, saving them time and money early on – and expensive headaches down the road.