Who Should Help With Your Business Review?

Who Should Help With Your Business Review?

By Matt McDonald

6 Min Read

In our previous post in this series we flagged that you may need to bring in outside experts to help with your Business Review, if you are the owner or leader of a smaller business.

First of all, here are some tips to avoid some common mistakes at this point:

Big Players Don’t Usually Care About Small Businesses: Sadly, high profile professional firms think that the cost of servicing smaller clients is excessive compared to the available fees. So they only sell to them if they can charge premium rates, or if they have a personal connection with the owner or leader, which inevitably compromises their objectivity and their ability to really help with your business review.

Industry Experience vs Broad Professional Expertise: Its tempting to seek advice from consultants who only work within particular industries, or from industry peak bodies. Unfortunately “deep but narrow” experience can lead to tired, patterned thinking – eg “one solution suits all” – and no-one wants second hand advice that might have already been sold to a competitor. Look instead at advisers who bring and can synthesise expert insights from a wide range of professional experiences and exposure to many industries and sectors – most growth opportunities and risks are highly “transferable”.

Not For Profits Shouldn’t Expect Charity: One of the dirtiest secrets of the business world is that most consultants and professional firms dealing with NFPs will actually charge higher, not lower rates, capitalising on gaps in many NFP leaders’ broad business experience and / or the absence of good procurement processes that more “commercial” organisations are more likely to have. And if they do offer cheaper rates, they will often assign less capable staff or “cut corners”, or because they have a personal connection which may then compromise their independence.

Word of Mouth is Good, Friends and Family May Not Be: Your personal networks can often suggest great people that they have worked well with in the past. On the other hand, relatives and friends, or people introduced that way, may lack objectivity and it may be personally difficult to challenge them, or for them to challenge you – although the very best consultants can sometimes manage that through frank and fearless communication, if their clients are also willing to do that work.

Substance, Not Show – flashy offices and expensive cars cost money, and someone has to pay for that. “Choose advisers who focus more on doing good work than on boosting their ego.”

On a more positive note, here are some signs that your chosen business adviser is the right one for your smaller business:

Substance, Not Show: Flashy offices and expensive cars cost money, and someone has to pay for that. Choose advisers who focus more on doing good work to help you with your Business Review rather than on boosting their ego.

Thought Leadership: A great business adviser will think conceptually, and be prepared to develop and share their insights both through their collateral (eg on their website, or through their social media and newsletters) or while advising you.

Qualifications + Hands On Experience: There are some accreditations and memberships that are really practical, eg in accounting, governance or law, but unfortunately many MBAs think that they are “better” than smaller business owners or leaders. Also seek out consultants who have run their own business, as owners and / or leaders, and can draw on a wide variety of roles and industry experience. Ask them about what they have learned from their own mistakes – because if they don’t think that they’ve made any they won’t be much help with your business review, which will almost certainly reveal areas requiring improvement.

Strategic Frameworks: The best advisers apply consistent approaches to their work, to maximise quality and efficiency. Flexibility can be helpful, but “winging it” isn’t. Here is an example of how our strategic framework is the foundation of our Business Health Checks.

Value: No good business adviser will recommend discounting as a permanent strategy. If you get a cheap rate, ask why to ensure that you aren’t losing quality. A self-respecting business adviser who protects his or her own fees is more likely to give you commercially sound advice.

Plain Speaking: Jargon is sometimes helpful, and occasionally unavoidable, but a really good business adviser will avoid it whenever practical when they help you with your Business Review.

Assessments + Follow Up Consultations: Assessments aid consistency and provide structure and reduce service costs, and most business owners and leaders will learn a lot just be completing a good one. However, they are best complemented by a follow up consultation process that allows the client and the adviser to learn about each other’s world in a more open way.

In our final post, we answer the “bottom line” question – how can your small business afford a Business Review ?

First of all, here are some tips to avoid some common mistakes at this point:

Big Players Don’t Usually Care About Small Businesses: Sadly, high profile professional firms think that the cost of servicing smaller clients is excessive compared to the available fees. So they only sell to them if they can charge premium rates, or if they have a personal connection with the owner or leader, which inevitably compromises their objectivity and their ability to really help with your business review.

Industry Experience vs Broad Professional Expertise: Its tempting to seek advice from consultants who only work within particular industries, or from industry peak bodies. Unfortunately “deep but narrow” experience can lead to tired, patterned thinking – eg “one solution suits all” – and no-one wants second hand advice that might have already been sold to a competitor. Look instead at advisers who bring and can synthesise expert insights from a wide range of professional experiences and exposure to many industries and sectors – most growth opportunities and risks are highly “transferable”.

Not For Profits Shouldn’t Expect Charity: One of the dirtiest secrets of the business world is that most consultants and professional firms dealing with NFPs will actually charge higher, not lower rates, capitalising on gaps in many NFP leaders’ broad business experience and / or the absence of good procurement processes that more “commercial” organisations are more likely to have. And if they do offer cheaper rates, they will often assign less capable staff or “cut corners”, or because they have a personal connection which may then compromise their independence.

Word of Mouth is Good, Friends and Family May Not Be: Your personal networks can often suggest great people that they have worked well with in the past. On the other hand, relatives and friends, or people introduced that way, may lack objectivity and it may be personally difficult to challenge them, or for them to challenge you – although the very best consultants can sometimes manage that through frank and fearless communication, if their clients are also willing to do that work.

On a more positive note, here are some signs that your chosen business adviser is the right one for your smaller business:

Substance, Not Show: Flashy offices and expensive cars cost money, and someone has to pay for that. Choose advisers who focus more on doing good work to help you with your Business Review rather than on boosting their ego.

Thought Leadership: A great business adviser will think conceptually, and be prepared to develop and share their insights both through their collateral (eg on their website, or through their social media and newsletters) or while advising you.

Qualifications + Hands On Experience: There are some accreditations and memberships that are really practical, eg in accounting, governance or law, but unfortunately many MBAs think that they are “better” than smaller business owners or leaders. Also seek out consultants who have run their own business, as owners and / or leaders, and can draw on a wide variety of roles and industry experience. Ask them about what they have learned from their own mistakes – because if they don’t think that they’ve made any they won’t be much help with your business review, which will almost certainly reveal areas requiring improvement.

Strategic Frameworks: The best advisers apply consistent approaches to their work, to maximise quality and efficiency. Flexibility can be helpful, but “winging it” isn’t. Here is an example of how our strategic framework is the foundation of our Business Health Checks.

Value: No good business adviser will recommend discounting as a permanent strategy. If you get a cheap rate, ask why to ensure that you aren’t losing quality. A self-respecting business adviser who protects his or her own fees is more likely to give you commercially sound advice.

Plain Speaking: Jargon is sometimes helpful, and occasionally unavoidable, but a really good business adviser will avoid it whenever practical when they help you with your Business Review.

Assessments + Follow Up Consultations: Assessments aid consistency and provide structure and reduce service costs, and most business owners and leaders will learn a lot just be completing a good one. However, they are best complemented by a follow up consultation process that allows the client and the adviser to learn about each other’s world in a more open way.

In our final post, we answer the “bottom line” question – how can your small business afford a Business Review ?