One of the toughest decisions you’ll ever make as an entrepreneur is how to manage your wealth for the long term. A small business advisor can help. Small business advisors offer a full range of legal, financial, and counseling services that can help you take your business to the next stage. However, before hiring a small business advisor, you should take the time to ask these five very important questions:
1. How Will You Help Me Build A Legacy?
No matter how successful we are with our business, there is always potential for more. As we transition out of our leadership role, we want to ensure that the new leadership continues to build upon our successes and leaves a legacy for the next generation. There are a lot of dynamics to manage to ensure the protection of our legacy. An experienced small business advisor understands this and will manage the business in a way to help facilitate the succession process without losing focus on the long term goals.
2. What Resources Will You Use To Value My Business?
Evaluating the value of a business takes serious expertise. They have to be able to put together a long term forecast that takes into account things like market fluctuations and potential growth areas. A good small business advisor has a variety of resources available to do things such as a network with banking and real estate experts. Make sure you understand the tools they have available to help place a long-term value on your operation.
3. What Metrics Will You Use To Determine What Resources My Business Needs?
The ability to assess your business needs is as important as being able to meet them. A skilled business advisor uses a range of metrics to value your business including financial projections, tracking return on investment, and measuring capital expenses against profits. Having transparency on these metrics will ensure that your business advisor is providing a detailed assessment of your business needs.
4. Have You Successfully Sold Or Transferred A Company Before?
When you interview a potential new employee, you ask them to showcase their experience. People with experience are more valuable because you know they can be trusted to do the job right. This is just as important with a small business advisor. Not only do they need the skills to meet your business needs, they need the experience. If they can detail their past experience helping sell or transfer a company before, then you know they can help you.
5. How Are You Compensated?
Compensation is always an important piece of any business discussion. As small business advisors don’t work a 9 to 5, the compensation is very different. Some small business advisors work on percentages, others work a per diem, and some work on a fee schedule. These difference don’t matter so much as the transparency. You want to make sure they are proving their deliverables, so that you are getting back what you have paid out.
At Smart Business Doctor LLC., we’ll be happy to answer these and any other questions you have before working with our team. We believe that our clients are our partners and will work diligently to build a strong, trusting relationship. If you are ready to take your business to the next phase, give a call to learn how we can help.