Business owners are the original do-it-yourself-ers. When faced with the need of the moment, they find a way to meet it as quickly and efficiently as possible. Today, these leaders are being challenged like never before. They are working to find inventive new revenue streams and efficiencies in efforts to avoid drastic operational cuts. Others are in the midst of those cuts and on the hunt for capital to avoid a potential shutdown.
In such challenging times, business leaders are often left wondering where to turn for guidance. They try going it alone, and some manage quite successfully, but for others, the do-it-yourself mentality can turn into a costly trap. Building and retooling your company, especially in difficult economic periods, is a time-consuming process. Resources are scarce, and hopefully, already being used at the optimal level. The saying we are all quite familiar with, “do what you do and do it well” has a counter argument rarely discussed—“don’t do what you don’t do well.” Seek assistance.
A business advisor is an optimal answer to provide the necessary guidance and advice during times like these. It is critical for the business owner to know when to reach out to this trusted individual. There are several moments in a business’ lifecycle when this move makes sense:
- Periods of great uncertainty: A well-established advisor has been through crises before. They know the proven strategies that help businesses survive these turbulent times.
- Valuation: The need for a valuation will come up throughout the lifecycle of your business. A financial advisor has unique, market-driven, insight to understand the Key Value Indicators (KVIs) that drive your business and how to properly measure them.
- Planning a growth or exit strategy: This is a complicated area. Given that the financial advisor understands the KVIs of your business, they can offer insight into those services and products that offer the greatest value at the lowest cost. They also have experience plotting a roadmap that allows owners the quickest path to their ultimate destination.
- Transaction: Speaking frankly, entering into a transaction— be it a capital raise, acquisition or sale, without an advisor is a risky decision. The majority of the time, the other side has expert advice and you don’t want to find yourself alone in uncharted territory. An advisor with the transactional expertise knows how to guide you through the entire process.
Simply put, your business’ advisor is the individual that should have your back and ease your worry. The advisor should be there to reach out to in difficult times and raise a glass with you during the successful ones. They should have the skillset, transactional expertise, and market knowledge to guide you through the many stages of your business’ life, and to the ultimate goal of a successful and valuable exit. Without a doubt, owning and operating a business in today’s world is difficult, why do it alone?