Running a small to medium business is incredibly challenging. With so many responsibilities—managing a team, ensuring customer satisfaction, and staying competitive—it’s easy to miss opportunities and make costly mistakes. The stress of running a business can be overwhelming, especially when you’ve invested so much into making it succeed.
From our experience working with hundreds of businesses as business advisors, and building startups and managing our own companies, we understand the pressures you face. We’ve seen that successful businesses consistently have a team that includes not just accountants, bookkeepers, and lawyers, but also business advisors. Interestingly, we’ve noticed that those who struggle often view business advisors as an unnecessary expense, dismissing their value as less critical compared to other advisors.
However, overlooking a business advisor can expose your business to significant risks and missed opportunities. Without their expert guidance, you’re not just risking minor setbacks; you could face severe consequences that impact your bottom line and long-term success. The same holds true for not fully leveraging the roles of accountants, bookkeepers, and lawyers.
So, what are the 10 costly risks you’re taking by not having a business advisor on your team?
1. Missed Opportunities
Without a business advisor, your business risks missing out on critical opportunities that could drive growth and success. Advisors bring a wealth of experience and a fresh perspective that can reveal hidden opportunities in the market. For example, they might identify new revenue streams, suggest innovative marketing strategies, or spot emerging trends before they become mainstream. Failing to seize these opportunities could mean falling behind competitors who are quicker to adapt and capitalise on market changes. Don’t let a lack of insight keep your business from reaching its full potential!
2. Unanswered Questions
When you face complex decisions, relying on generic advice can lead to costly mistakes. A business advisor provides bespoke guidance tailored to your specific needs and challenges. Without their expertise, you might be left with unanswered questions or make decisions based on incomplete information. This could result in poor strategic choices, operational inefficiencies, or missed chances for growth. Ensure you’re making informed decisions with advice that’s relevant to your unique situation and goals.
3. Avoidable Mistakes
Every business owner learns through experience, but learning from costly mistakes can be detrimental to your bottom line. Business advisors have navigated numerous challenges and can help you avoid common pitfalls. They offer practical advice on best practices, regulatory compliance, and strategic planning, reducing the risk of errors that could impact your financial health or operational efficiency. By sidestepping these pitfalls, you can save your business from unnecessary losses and setbacks.
4. Lack of Accountability
Maintaining focus on your business goals can be challenging amidst daily distractions. A business advisor provides the accountability you need to stay on track. They help set clear objectives, monitor progress, and ensure you’re taking consistent actions towards your goals. Without this external accountability, it’s easy to let priorities slip, delay crucial initiatives, or miss important deadlines. Stay motivated and ensure you’re making progress with someone who helps keep you accountable and focused.
5. Isolation During Tough Times
Business challenges can feel isolating, especially when facing difficult decisions or setbacks. Without a business advisor, you might navigate these tough times alone, increasing stress and potentially leading to poor decision-making. Advisors offer support and guidance during challenging periods, providing a sounding board for your concerns and helping you develop strategies to overcome obstacles. Don’t face these trials in isolation—lean on an advisor who can offer valuable insights and support.
6. Stagnant Growth
Growth is crucial for the long-term success of your business. Without the strategic input of a business advisor, you might struggle to identify and implement effective growth strategies. Advisors help you explore new markets, optimise operations, and innovate to stay ahead of the competition. If you’re not actively working on growth strategies, your business could experience stagnation, missing out on opportunities for expansion and increased profitability.
7. Decreased Business Value
Building and maintaining the value of your business is essential, whether you plan to sell it in the future or simply want to maximise its profitability. A business advisor helps implement strategies to enhance your business’s value through operational improvements, market positioning, and strategic investments. Without their guidance, you risk undervaluing your business or missing out on opportunities to increase its worth. Protect and grow your business’s value with expert advice that ensures you’re on the right track.
8. Falling Behind in Innovation
Innovation is key to staying competitive in today’s fast-paced market. Business advisors keep you informed about the latest trends, technologies, and best practices that can drive innovation within your business. Without their insights, you might lag behind competitors who are more proactive in adopting new tools and strategies. Falling behind in innovation means missing out on ways to improve your products, services, and operations, potentially leading to decreased market relevance and profitability.
9. Unprepared for Exit or Succession
Planning for the future of your business is critical, whether you’re considering retirement, selling, or passing it on to the next generation. A business advisor helps you develop a robust exit or succession plan, ensuring a smooth transition and maximising the value of your business. Without this planning, you risk facing difficulties in achieving your desired outcome and ensuring the future stability of your business. Protect your legacy and secure a successful transition with expert advice and strategic planning.
10. Falling Short of Competitors
Remaining competitive requires constant vigilance and adaptation. Business advisors provide insights into competitor strategies, market conditions, and emerging trends that can help you stay ahead. Without their guidance, you risk falling short of your competitors who are more agile and forward-thinking. This could result in lost market share, decreased revenue, and reduced growth opportunities. Stay ahead of the competition with a business advisor who helps you navigate the market and make informed strategic decisions.
How much are you costing your business by ‘going it alone’ as opposed to partnering with an experienced business advisor?
Neglecting to include a business advisor in your team is a risk you can’t afford to take. From missing out on growth opportunities to facing challenges without support, the potential downsides are significant. A business advisor helps you avoid these pitfalls, providing the expertise and accountability needed to keep your business on track.
Experience also tells us that you can expect, as a minimum, a 2X return on any funds invested with a professional business advisor.
Don’t let your business fall behind—reach out to the professional team of business advisors here at Benchmark Business Advisory today and safeguard your success.