What makes a good business advisor, ‘good’?
Having spent the past 11 or so years in the business advisory space, I’ve come to understand what makes a good business advisor, good. While there are numerous traits that all good business advisors have, two stick out the most for me. I’ll reveal those in a moment, but first, let me take you through my list of traits all good business advisors possess (there are in no particular order):
• They are great at listening
• They ask the right amount of ‘why’ questions, listening to what’s being told to them and reading body language along the way, drilling deeper with more why questions as required
• They know how to listen to not just what is being said, but how it is being said and the accompanying body language
• Taking the time to understand by collecting information and asking questions before jumping to conclusions and providing advice; that is, diagnosing before prescribing a solution
• Seeking to provide solutions that address the real issues, and not just the surface problems
• Compassionate and caring
• They do as they say
• Know their own limits, their strengths and weaknesses
• Are humble enough to call in other advisors when needed
• Have real world stories of their own successes and failures in the world of business because they have in the past started and managed their own businesses
• Have done what they say they do, with other clients, and have had success that can be demonstrated
• They are client focused and are truly wanting to help and make a difference even if it means referring the client elsewhere and losing out on the immediate income
• They take the time to build relationships
• They have a network of other professionals and service providers
• They are constantly learning new things
• They are knowledgeable about all aspects of operating a small to medium business
• They bring energy by motivating, engaging and elevating their clients, leaving business owners, their teams and the business refreshed and better off as a result of this transfer of energy
• Accountability is central to everything they do
• They use systems, processes
• They understand and use governance mechanisms
That’s a big list hey? Despite this, a good business advisor can tick off all the above points. Not just some. But all.
Now, you might be wondering, is there one trait that is more important than the rest? Having worked in the advisory space for the past 11 years and counting and having worked with numerous other advisors over the years, I would say that out of what I just listed, there isn’t just one, but in fact there are two that are in my view the most important. These are: client focused with an honest desire to help, and, they’ve owned at least one business in the past.
Firstly – a business advisor who is truly client focused and thus truly wanting to help make a difference will use this desire to fuel the development of the rest of the traits that make up a good advisor. They will take the time to work on themselves and to ensure their client experience and service delivery is constantly evolving, improving, and aligning with best practice.
Secondly – I personally believe good business advisors know what it is like to be a business owner because they themselves have been business owners in the past (or may even own one or more businesses today). A lot of business advisors out there come out of the management space, particularly from upper level, C-level management, which works for larger businesses, but I do not believe that this directly transcribes into a complete understanding of what it is like to run a small to medium business. Don’t get me wrong; these individuals are usually incredibly skilled and talented, but I believe that until one has had their own money on the line and has had to deal with the stresses and pressures that come with owning a business, and not just managing it, true appreciation and understanding cannot be had. Because of this, the individuals who come out of these senior or C-level roles tend to be better suited to act as specialist advisors, and in fact I’ve referred work to such professionals numerous times throughout my career, they are must have connections for any business owner and advisor. Usually business advisors work with specialist advisors in assisting their clients.
So, there you have it, that’s my take on what makes a good advisor, good. If you are a business owner seeking a business advisor then use this list as a guide to help select the right business advisor. The list can be used to ‘interview’ advisors. If you are a business advisor, or are thinking of becoming one, then this list is a good reference point for you to reflect against and develop a roadmap for your own personal and professional improvement.
And of course, if you are a business owner seeking business advice, contacting our team at Benchmark Business Advisory will be the right move.
And if you are a business advisor looking to join a progressive, motivated, A grade team, then reach out to me for a confidential chat.
Written by Pete Spinda, Partner & CEO, Benchmark Business Advisory.