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Why Small Business Owner Needs Independent Adviser

Posted by on in Global Business Group Blog
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business-adviserHere is one very good and free advice. Buying expertise and experience is the best investment. Money spent on a professional advice from a business expert will pay back many times over.

Someone said that being a small business owner is the loneliest job in the world. Why? Because regardless how many people are around, the owner is the only one worrying deeply about business success and trying to find answers to everyday business problems. Business owner is in charge of all critical decisions controlling future of the business. Even in case of partnership, it's quite frequently only one of the partners is making final decision. The problem is evident. Regardless how bright and thorough you are, it's often impossible to get the right prospective and make the right decision looking only from one angle. The consequences can be devastating. Wrong decisions may lead to all kind of troubles, even loss of the business.

Alternative opinion of another competent business person is critical to small business success. In public and larger private companies such advisory role is assigned to the board of directors. Members of the board are usually well-seasoned business people who can offer a valuable advise, suggest and evaluate strategic business moves. Most small businesses don't have such advantage. However, in order to be successful, they do need somebody to look over the owner's shoulder, with whom the owner can discuss current business situation and new ideas.
 
Small business owners are very independent people. Entrepreneurs, by definition, are built to take risk and make decisions. This is all good, however, in many cases it is based on gut feeling and, without tossing ideas with another experienced person, there's a good chance of making a wrong decision. Rather than learning from own mistakes, wouldn’t it be better to get a useful advice from an expert?
 
What comes mystery to me is why business owners usually greet any assistance with stubborn resistance. Even if it comes for free! Let alone if they have to pay for it. Sometimes arithmetic is playing dirty tricks on business owners. Every business owner understands very well that buying merchandise for $2,000 and selling it for $10,000 is a pretty good business. However proposition of paying $2,000 for the advice that will allow to generate or save $20,000 most likely will be declined.
 

 

Comments

  • Guest
    Guy kingston Thursday, 09 December 2010

    Re:

    The reason why many business owners won't pay $2,000 for advice that claims a ten-fold return is that they don't trust the claim sufficiently to justify the risk.I often wonder why service providers don't out their money where their mouth is? A much better take up rate would likely be fund if the advice giver required no fixed fee but agreed to work on payment by results.Perhaps because they know the results won't be as good as they claim is why we don't see many of this type of offer.

  • Guest
    Curtis Monday, 14 May 2012

    Re:

    In addition to Guys' response. The reason most service providers of this information would hesitate is due to the owners follow through. I would think most consultants would agree to a pay for results approach if the owner or partners had a 100% follow through approach.

  • Jacob Berenfeld
    Jacob Berenfeld Monday, 14 May 2012

    Re:

    Curtis, you're absolutely right. You can't force business owner to follow on your advice, or do it exactly as you prescribed. There is a reason why certain activities should take place in a particular order. Minor deviation can negate the whole point. It's worth noticing that consultants are selling advice or training, whereas turnaround specialists, in most cases, implement the changes on their own. Obviously, such services cost substantially more, and some owners don't feel comfortable to give full authority to another person. However, turnaround specialists can and do work on success fee basis.

  • Guest
    Steve Sharp Sunday, 09 December 2012

    Re:

    That's why I'm not in the consulting business and do internet marketing instead. It's not easy to convince business owners what they need even when they know they need it.

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Guest Tuesday, 17 October 2017