The complexities of running a business have seen many owners consider hiring a business advisor to help them take the right steps. This can be a very good option for some organizations, although as with all decisions of this nature there are pros and cons. The following are some of the advantages and disadvantages to consider when deciding whether to work with one of these professionals.
A business advisor is going to be able to help inexperienced entrepreneurs make the right choices to ensure their business survives and thrives. The sad reality is that most small businesses fail within the first few years, so there is much to be said for the advice of an experienced consultant. A good business advisor will remain up-to-date on significant trends and strategies that they can suggest you incorporate into your business, information that can be invaluable.
A Neutral Observer
Business owners are not impartial. They are often very emotionally tied up in their business. This isn’t a bad thing – very few businesses succeed without the passion of those in charge. However, this can make it very difficult to look at your company’s situation objectively and take needed actions. You may not notice problems that would be readily apparent to an impartial advisor. Business advisors are beneficial not only because they are neutral observers, but because their goal is always the same as yours: to help your business succeed.
Frees Up Time
As a business owner, you want to spend as much time as possible running your business, coming up with viable new ideas and preparing them for launch. Your time is valuable and limited. A business advisor takes many critical responsibilities off your shoulders, such as conducting research and devising strategies for success. This provides you with the best of both worlds – more time to manage your business while your advisor sets up your company to reach its goals.
Small businesses often do not have large budgets to work with and must stringently watch their spending in order to stay afloat financially. Working with a business advisor will be an expense. Business owners should be certain the additional expense will be beneficial to their organization before deciding to sign a contract with a consultant.
Potential Creative Stagnation
A quality business advisor will know what they are talking about and be able to offer solid professional advice. However, they are not you and may not understand or share your vision for your company. The best entrepreneurs innovate, which may clash with a business consultant’s advice on what to do, especially if they have given similar advice to other companies. This can be a significant issue as it could keep your company from standing out in the crowd and achieving its fullest potential.
Success Isn’t Guaranteed
Hiring a business advisor is always a risk because you may not achieve the results you had hoped to see. This may be because you chose an advisor who was not qualified to help you, but it could also be because there is something fundamentally wrong with your business model. For example, the market for your product simply might not be there, at least not on the scale you need it to be. It is critical to conduct research on an advisor before hiring them, such as looking at their past work and references. Doing so can mitigate some of this risk.