Are Business Advisory Services a Worthwhile and Necessary Investment?
I often have clients ask me about the fees they should be paying to their accountant, their lawyer, their business coach etc (and most of them are complaining that they are too high).
My response has always been to follow this simple rule of thumb that whatever you pay any advisor they should return to you (either save you or make you) a multiple of at least three times whatever you pay.
In other words, if you pay your accountant $10,000 per year then they should make you, or save you at least $30,000. In my experience with good quality experienced advisers, that is not a difficult target to achieve.
One of the worst habits in Australian business is our DIY approach to advice. Most business owners would not do their own root canal therapy or replace the clutch in the car or rewire the garage, yet we often attempt to run our own marketing, manage our HR and legal compliance issues, document our own contracts or manage our own bookkeeping! In my experience, this costs clients every single time in either real cash or the opportunity cost of the massive amount of time it takes to do something you are simply not good at.
Working with a quality team of experienced business advisers (and perhaps forming a board of advice and meeting with them regularly to look at the strategic management of the business) will always add value and is always highly regarded by buyers, as it is an important aspect of reducing risk within the business.
I suggest you review your existing advisors and make sure you are getting a 3 to 1, return and if not, either have the discussion with them to change the approach or change your advisors. If you are not sure where to get good advisors that can deliver this kind of outcome then simply reach out to either an existing advisor you trust, a business owner you know is successful or let me know. We work very closely with good quality, experienced strategic advisors and make a real difference in their clients’ business.
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