11.06 – Getting Good Business Advice
In the journey of starting and running a successful business, seeking advice from professionals such as accountants, bankers, lawyers, and consultants can be invaluable. This lesson provides guidelines on how to select and effectively utilize these external advisors.
Tallying Up An Accountant
Keeping your financial affairs in order is crucial for legality and dispute resolution. A competent accountant, whether in-house or external, can keep your business on track. Conversely, a negligent accountant can cause significant damage.
Attributes to look for in an accountant:
- Membership in recognized accounting bodies such as the Chartered Institute of Management Accountants (www.cimaglobal.com) or the Institute of Chartered Accountants in England and Wales (www.icaew.com).
- Proven track record and references.
- Familiarity with your industry.
Investing in a Bank
Selecting the right bank is critical since your banker often becomes a key advisor, especially in financial crises. Choosing the wrong bank can cost you more than just an overdraft.
Top questions to ask a bank manager:
- Top questions to ask a bank manager:
- What is the interest rate, and what factors determine it?
- Are there any additional charges?
- Do you visit your clients to understand their businesses?
- How frequently do bank managers move on?
- Under what circumstances might the bank request a personal guarantee?
- What advisory services do you offer?
- What makes your banking services unique?
- Are there any situations where early loan repayment might be requested?
For a comparison of the best small business loans, check out independent financial comparison websites like NerdWallet UK (www.nerdwallet.com/uk/business-loans).
Soliciting for a Lawyer
At some point, every business needs legal advice. Whether forming a company or handling disputes, a lawyer’s expertise can save time and money.
Key considerations when choosing a lawyer:
- Ensure they have experience in your industry.
- Look for memberships in reputable legal associations.
- Seek recommendations and reviews.
Lawyers can help with contracts, leases, health and safety procedures, and more. Engaging a lawyer before problems arise can provide a strategic advantage.
For access to a network of business-focused solicitors, visit Lawyers For Your Business (www.lawsociety.org.uk/en/career-advice/individual-accreditations/lawyers-for-your-business).
Managing a Consultant
When facing complex problems outside your expertise, hiring a consultant can be a practical solution. Consultants bring specialized knowledge and experience to tackle specific issues efficiently.
Steps to effectively use a consultant:
- Treat the hiring process similarly to recruiting a key employee.
- Brief the consultant thoroughly on the problem.
- Start with a small, measurable task to evaluate performance.
- Avoid long-term or open-ended commitments.
- Retain decision-making authority and oversee implementation.
The Management Consultancies Association (MCA) offers guidelines and a searchable database of consultants by region and specialization: www.mca.org.uk/members.
By following these guidelines, you can leverage the expertise of accountants, bankers, lawyers, and consultants to navigate the complexities of running a business successfully.
