10 tips in choosing a great Business Advisor

CAD Partners CFO On Call shares their top 10 tips in choosing the right business advisor for you and your business.

Business advisors can be extremely valuable for business owners, in which they can help you work on the business as well as in it.  However, one has to be wary of the many potential traps ahead when it comes to choosing the right business advisor.

There are many companies that offer business advice, some can be fantastic but others can be dreadful.

CAD Partners offers their 10 tips in finding the best one and how to work with them:

1. Find someone who has passion to work with you to achieve your goals and delivering more value than they cost.  A good advisor should be able to help you create improvements, that deliver several times their cost onto your bottom line and add to cash flow as well as create efficiency.  They should also be able to quantify the value outcome of your work together.
2. Work with someone who doesn’t just give you loads more work to do.  You need someone who is ‘hands-on’ who will actively participate in the implementation of strategies with you and your team.  They should also be clear about how you can implement actions and not leave you to figure it out for yourself.
3. Someone who speaks your language i.e. ‘plain english’ rather than jargon.  Don’t feel stupid if you don’t understand what they’re saying – if you’re paying the bill you’ve a right to understand.
4. Someone who understands the ‘Key Drivers’ of your business is a must.  Key Performance Indicators (KPIs) are a fantastic way to measure improvements in all areas of business.  Most businesses can be segmented into five main areas: a. Product and Service Development, b. Marketing and Sales, c. Operations and Finance, d. Human Resources; and e. Customer Service
5. Someone who is prepared to learn about your industry but not charge you for their learning.  They don’t necessarily already need to have knowledge, as a good advisor can be a generalist in all types of businesses.
6. Seek someone who has good credentials and a proven track record.  Ask about what they’ve helped other clients to achieve and how they did it and ask for references.
7. Look for someone who ‘walks the talk’ and demonstrates what they are advising you to do.  Have a look at how they present their service, how they market themselves and handle sales, how they operate and handle the financial side, how they work with their own staff and how they handle customer service.
8. Make sure they are accessible and available for you.  If you’re working together as a team with them, you need to be able to communicate effectively and you need to bounce ideas off them readily.  Having said that, it’s best to be organised about communication and plan for meetings, but occasional ‘ad hoc’ calls shouldn’t be a problem.
9. Someone who doesn’t just push their own ‘hobby horse’.  It could be that their area of interest is not your problem, yet this is what they want to focus on, because it’s what they know best.  An all-round focus is vital as key areas needing attention can be overlooked at high cost…but
10. Someone who understands the impact on all areas of business especially the financial side.  Getting your financials right helps you understand the impact of changes in other business areas, such as sales and marketing.  Top sales are great, but the cash flow at the right time to fund them is critical to success.