Business Advisors

by Jack Moore, C.A.

Every business needs advisors.

They may be helpful or destructive or expensive or cheap, depending on many circumstances. Owners of small entrepreneurial business usually do not take advantage of advisors because they do not know what to look for in choosing them.

There are attributes for which to search and steps to be followed when seeking and selecting advisors.

References should be obtained and checked out carefully and completely. Try to do this face-to-face. People tend to be more frank in these circumstances. Over the telephone will not always get the right answer. It is too easy to say what one wants to hear.
Practicality is the most important attribute for which to search. Find someone who has done it before and has been successful not only in planning, but also in implementation.
Results are the only matters for compensation. There must be something tangible such as a written report, proposal or plan on which to act. It must be timely, coherent and achievable.
Compensation should be settled before the task is commenced. Do not wait until it is completed to examine it, pay for and obtain written progress reports and plans. Don't wait until the end to get surprises. If you are not satisfied as it goes along, speak up. Stop the process and/or the task if necessary.

Do not be reluctant to interview them in your place of business rather than in theirs. The dialogue will then be bent in your favour. Do not be hasty in researching a decision. Most of the relationships with advisors last for a very long time, once you have found the one that suits your needs. If you find that the relationship is not working then terminate it promptly for the benefit of both parties. Keep searching until the right fit comes along. When seeking recommendation from other people, do not approach friends or or relatives: ask business associates and acquaintances. They tend to be more honest and have fewer axes to grind or favours to pay back. Seek out those of comparable age to yourself. Gender may be a factor. Bring into the fold at least the following:

Accountant
Banker
Factory/plant organiser/manager
Insurance agent - other than life
Insurance agent - life
Investments - both long and short term
Lawyer
Office procedures/systems/equipment analyst

[the advisors are listed in alphabetical sequence because they vary in importance depending on the nature of your business and on your own abilities.]


There are two final factors to be constantly kept in mind. The advisor must demonstrate to you that, when the task is beyond their ability and knowledge, it is recognised and discussed. The other factor is that advisors expect to be compensated for time and effort. Pay them. They will be worth it.