To accept good advice is but to increase one’s own ability. ~Johann Wolfgang von Goethe
To profit from good advice requires more wisdom than to give it. ~ Wilson Mizner
A client of mine recently told me that his long-term accountant was someone he only saw once a year to review taxes.
The CPA never really showed much interest in the overall health of the business or the strategies or tactics of the business. He simply did the tax work at the end of the year. This was a relationship of well over 10 years and, although the client had hoped the CPA would become a trusted business advisor, it hadn’t turned out that way.
Unfortunately, this situation is far too common. While many business leaders look to their CPAs, attorneys or other consultants to become trusted advisors, few find the advice and guidance they seek. Given the challenges so many businesses are facing in today’s tough economy, the time seems right to talk about what a business advisor should bring to your business.
- A genuine desire to help: It sounds obvious, but a trusted business advisor should be eager to help you achieve your business goals, not simply to increase his/her annual revenue. At it’s heart the relationship should be “all about you.”
- An understanding of your company: No advisor can help you without truly knowing you, your business and the dynamics of your industry and marketplace. If a consultant isn’t willing to invest the time and effort to understand your company, he/she isn’t the right choice.
- Trusted Advisor to other companies: It is important that any advisor you use is also experienced and respected by other companies. Carefully check references. Does he/she do for others what you would like them to do with you. Do they have a reputation for investing deeply in a small number of companies and developing “customer intimacy” or are they digging shallow holes in many companies.
- A global perspective: Consultants who look at only one aspect of your business – whether finances, or HR issues or legal concerns – have their value. However, when it comes to charting overall business strategy, developing and executing plans to achieve company goals, and ensuring that you have the right team in place to make it happen, you need an advisor who understands the big picture.
- Unbiased perspective: One of the biggest challenges for business leaders is the tendency to lose sight of the forest for the trees. When you’re mired in the day-to-day details of running the company, it’s difficult to see problems and opportunities. A trusted business advisor should offer a fresh perspective on what you’re doing well and what needs work.
- New ideas: Companies often get locked into doing things the way they’ve always been done. What worked well for your business in the early days may now be holding it back. Your business advisor should be able to help you identify outmoded systems and processes and suggest more efficient ways of doing business.
- Experience: Someone who has run a successful business is best qualified to advise you on how to achieve your goals.
Now that you know what to look for, do your homework. Approach the recruitment process as you would approach hiring a key member of your management team. Develop a pool of candidates and do your due diligence. Conduct in-depth interviews. Don’t rely on the list of references the candidates provide; ask for the names of one or more former clients and call them to find out why they no longer work with the consultant. Remember that you’re looking for someone to help ensure the future of your business and possibly your personal retirement.
Hiring a trusted business advisor is the first step to ensuring the success of your business. But look before you leap and be sure to choose that advisor wisely.