It's no secret how much entrepreneurs like being the boss. Flexibility, tax breaks, more time with family and oft-bigger incomes are just a few of the bennies homebased business owners enjoy. But like any entrepreneurial endeavor, there are one or two flies in the ointment when it comes to going it alone.

Perhaps the most imposing challenge for business owners--after finding customers, that is--is handling your personal finances. Once you leave the icy grip of your corporate cubicle behind, you also walk away from a fistful of corporate perks and benefits, including company-administered retirement plans, insurance packages, and pension or stock option programs.

Now that you're the boss, you're responsible for handling all your financial affairs. The good news is that you don't have to go it alone. Indeed, it's highly advisable that you don't. Hiring a financial advisor can save you the hassle of administering your own financial affairs, and it's not as expensive as you might think.

How Do You Choose A Financial Advisor?

In a word: carefully. Start with references from friends and other professionals, like your lawyer or accountant. Another method is to talk to the branch manager of a financial services firm about your investment needs and then ask for a recommendation. You may want to interview at least two or three advisors before you make your choice. Briefly, your decision should take into account several factors, including education, experience, credentials, areas of specialization and, perhaps most important, personal rapport. One more thing: Make sure you ask a lot of questions. If an advisor talks up a tax break or a mutual fund, ask why. Don't take anything at face value.

How You Pay An Advisor

When you work with a financial advisor you should expect to pay for his or her time and expertise just as you would a doctor, lawyer, accountant, computer consultant or other professional--in other words, how you get paid from your clients. At the same time, you should expect your advisor to explain exactly how he or she should be getting paid. Normally, financial advisors charge a flat fee--anywhere from several hundred to several thousands dollars per year, depending on the size of your business and the breadth of your financial portfolio. Others take a percentage--usually about one to two percent--of your financial portfolio's value. When invoicing you for his or her services, your financial advisor might ask you to account for other costs, including:

• The value of the time you might otherwise have to spend on investment research and decision-making

• The cost of mistakes you might otherwise make, such as not planning the tax impact of investments properly

• The "lost opportunity cost" that might otherwise occur when assets sit idle

Naturally, in the long run, if the investment returns meet your expectations, your advisor's services will have been well worth the cost. You should always feel free to discuss with your advisor whether you're getting your money's worth.

While it's always tough on a tight budget to cough up $1,000 or so for a financial advisor's services, consider it an insurance policy that protects you from unwelcome surprises with your finances. Chances are, you'll consider it money well spent.