Hiring an advisor for your business is a wise move for your business, especially at the moment when great financial management is more important than ever. But with so many advisors out there, how do you know which one is right for your business? Here are five top tips to help you choose an advisor who will transform your business and ensure that you achieve your goals.
1. Check their credentials
The first step is to check that your potential advisor is experienced and credentialed. There are advisors who aren’t, so this is an important step.
Some advisors may have a degree in finance or accounting, while others may be business mentors or have other business experience. Make sure you check their credentials to ensure they are qualified and actually know what they're talking about. Unfortunately, just about anyone can get online and claim to be a business advisor or coach, but not everyone has the knowledge and experience to back it up!
2. Social proof
Reviews and testimonials from other happy clients are a great way to gauge whether or not an advisor is worth working with. Look for social proof in the form of positive reviews on their website, or see if you can find any testimonials from other businesses they have worked with. Don't be afraid to contact said businesses to ensure that the reviews are genuine. This will help you get a feel for whether or not they are reputable and actually deliver on their promises.
3. Free consultation
Most advisors will be more than happy to offer a free consultation. This doesn't just benefit you; a good advisor won't take on a client if they don't feel that they are the right fit. Be wary of anyone who wants to work with you without even speaking to you first. During the consultation, be sure to ask plenty of questions and get a feel for their process. This is your chance to really get to know them and decide if they are the right fit for your business.
4. Make sure they're a specialist
Working with a specialist has huge benefits for your business. They will have a wealth of experience and knowledge in their specific area, which means they can provide you with tailored advice that is relevant to your business.
A specialist will also help you to benchmark your business and understand how you're faring in the context of your industry. Metrics such as costs, revenue and profit margins vary hugely from industry to industry. What might be a poor profit margin for one industry could be a big success for another sector, and it's important to work with an advisor who understands this. Otherwise, you could end up making decisions based on inaccurate information, or losing confidence because you think your business is performing worse than it actually is.
5. Chemistry matters
It's important to like and trust your advisor. After all, you'll be working with them closely and entrusting them with sensitive information about your business. You should feel comfortable communicating openly with your advisor, and you should feel confident in their ability to help you achieve your goals. If you don't gel with them, it's probably not going to work out!
Final thoughts
Choosing the right advisor for your business is critical and it can be difficult to know where to start. By following these five top tips, you'll be well on your way to finding an advisor who can help you achieve your goals. Remember that this is a significant investment, and one that will pay off extremely well if you make the right decision, so choose wisely.
