Market Overview

Why You Should Hire a Financial Analyst for Your Startup


Forming a startup is very appealing in this day and age. Many businesses and organizations that currently have a global reach and astronomically high market value began as small startups. It’s an appealing picture: two or three people working out of a garage, slowly growing and innovating over the years until they hit the big time. However, the reality of running a startup is much harsher. For every Apple or Facebook, there are hundreds of companies with brilliant employees and bright ideas that still crash and burn.

Because of this, it’s important to temper expectations when undergoing a project of as great magnitude as a startup. Other important things to consider with startups are the image it presents to the world, the current economic climate, and any potential financial roadblocks that can get in the way of success. Because of this, it is a very good idea for any startup to include a financial analyst such as a CFA in their roster. Here are some reasons why any startup that wishes to last longer than one year will want to add a financial analyst to the group of people in that garage.


The market is completely saturated with individuals trying to get their own startups off the ground. Everyone’s got ideas, and everyone has seen the same success stories and believe that they can reach that same level of wealth and influence. Because of this, it’s important to stand out and differentiate your organization from the scores of companies competing with you. Having a financial analyst on your team presents an image of professionalism, and really sells the point that you know what you’re doing. A CFA can provide valuable services to your company by managing your relationships with clients, and can even help find new clients through networking.

In addition to helping you find clients, financial analysts can aid you in the search for funding. It will be much easier to find potential angel investors and convince them to share their resources with your organization if you employ the help of a CFA. Other than years of experience, nothing shows that you are a sound investment better than having a dedicated financial expert on your team.


CFAs are trained to assess risk, and to formulate strategies around risk in the short term and long term. Their skillset lends them to a wide variety of industries because they’re proven critical thinkers and capable of leading the charge when your company is ready for investors. and With the aid of a financial analyst, you will have some warning if there are potential issues that will cause problems for your organization. This is especially important in the early stages of your startup, as you will be much more vulnerable to anything that can increase your costs or decrease your profits. Without a safety net, one slip up can lead to bankruptcy. There are many promising startups that have met their end after being blindsided by financial hardships; having a qualified financial analyst can help prevent your startup from meeting a similar fate.

Another way in which the foresight of a financial analyst can benefit your startup is in figuring out how to ensure success, not just avoid failure. An astute CFA can help you strategize potential moves that can lead to greater growth and profit. Your company may be adept at providing one specific good or service, but a financial analyst can help you prevent stagnation by finding other niches and industries that you can reach with your company’s particular skillset.


This is perhaps the most obvious benefit of employing a financial expert, but still worth mentioning; having a CFA at your disposal will help you save money. With knowledge in trading, banking, and portfolio management, a financial analyst will ensure that you don’t spend any more money than you absolutely have to. This is very important for startups just getting off the ground, as they usually don’t have a great deal of capital to spend.

In addition, the input a good CFA can give in regard to taxes will help you minimize the amount you have to pay every year—they may also find opportunities to get more money back come tax season. Corporate taxes can be very high and unforgiving to new business ventures, so having an expert on navigating this field at your disposal can mean the survival of your organization.


It’s understandable for any new independent business venture to want to run as lean as possible, meaning few employees and expenses at the start. However, one area you will definitely want to devote resources toward is finance. A financial analyst may seem like a large cost at first, but it can very quickly turn into a valuable and lucrative investment. Having a CFA in your corner will ensure you make good decisions in your business endeavors. It is one of the best strategies for ensuring that your startup not only survives, but thrives.

Bryce Welker, CPA, is the CEO of multiple companies and owns more than 20 educational websites including

Posted-In: Be Your Own Boss


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