Three people every business owner should know.
Statistics have shown us that nearly 6 in 10 new businesses will fail within the first 5 years of business. Start ups fail for many reasons: poor financial management, failure to plan properly, lack of good marketing, to name just a few reasons. After all, initially someone goes into business to provide a specific service or product, not to know how to run a business.
A common mistake made by many business owners is not seeking out the advice of experienced professionals, because they are not sure where to go or what they will need. Or they think that cost associated with seeking out an advisor is going to be too expensive. However, a few dollars invested in working with experienced business advisors each year is invaluable and could save you and your business thousands of dollars in the long run. Choosing the right advisor is extremely important, so you will want to spend some time researching the best fit for you, and your business.
As a business owner your closest advisor should be your accountant. Seek out an accountant who is not only a good fit for your business, but also someone you get along with and trust. A good accountant is generally a great resource for any business, especially on providing advice and assistance on all aspects of your businesses financial management. An accountant can be extremely helpful in setting up your business financials in order to maximize your tax advantages. How your business financials are put together can greatly help your business secure loans, it will do your business no justice if your banker is confused by your financials.
Communicate with your accountant, and keep them well versed in most aspects of your business, and not just limited to doing your taxes. A good accountant is someone who will be able to help you steer your business in the right direction. Your accountant should be able to recognize your businesses strengths and weaknesses, and help you determine any potential financial problems or any potential opportunities.
Plan to meet with your accountant at least once a financial quarter to discuss your businesses progress.
Not all accountants are alike, so make sure to choose one that specializes in helping new businesses, and capable of growing with your business. It is extremely important that the accountant fit your needs, qualified, experienced, and is able to communicate directly with you.
Your next closest advisor as a business owner should be the personal bankers at your local banks. You should have multiple advisors when it comes to banking and lending. Knowing several of the personal bankers where you live, can provide another resource of invaluable information for any small business. Your personal bankers can provide you with valuable advice on experiences they have had with other small business owners.
Use your personal banker to bounce ideas off of when in the early stages of developing your business, for instance, you can have them look over your business plan and point out some potential problems with your plan. Even if your banker is unable to assist you and your financial needs, they can probably suggest to you the next best alternative financial solution.
Third, bring a lawyer into the mix. Trust me the advantages of having a lawyer greatly out way the disadvantages not having one. Having a lawyer give your business expert legal advice can end up saving your business thousands of dollars. Use their legal knowledge to set up any legal agreements your business has or is considering undertaking. All documents that are going to be between you, other businesses, or customers should be reviewed by a lawyer to ensure your best interest is protected.
Always have the best interest of you and your business in mind when choosing the right advisors to assist in the growth of your business. Never base your decisions on friendship, family, or ease of use. Shop around to find advisors who are empathic, honest, experienced, well qualified, and available to assist your needs as a business owner.
A good advisor brings with them an outside perspective, and can think about your business more objectively. Having objective input into your business, may help recognize small problems early protecting your business from crippling mistakes.