So when is the best time to call on an accountant or business advisor, and what value can they add to your business?
Let’s firstly talk about timing. Timing in life and business is key, opportunities may come by fleetingly and inaction can mean an opportunity is lost. We’ve all had the “if only” moments in our professional and personal lives and regretted not chasing down an opportunity. Not all opportunities can be good for us however, and this is where an independent Business Advisor is worth his (or her) weight in gold.
An independent Business Advisor can evaluate the opportunity for what it is, the return it can provide, and the cost and impact to your business and lifestyle.
Business opportunities need to be viable, and you need to know what you’re getting yourself into.
Here are some key times when it’s good to call on an advisor for help:
- BEFORE YOU BUY A BUSINESS
It goes without saying that buying a business is a huge step for most people. Ensuring the business value and return stacks up will ensure the business can provide the income you and your family need, but also ensures you pay the right price for the business. We’ve been involved with so many due diligence projects and have in many instances lowered the asking price on the business because the value just isn’t there, or recommended our clients walk away from the deal because it’s not the right return or type of business for them. Sometimes a few thousand dollars on a due diligence when you’re serious about a new business venture, can save hundreds of thousands of dollars on a bad business purchase.
- BEFORE YOU EXTEND YOUR BUSINESS OR CHANGE DIRECTIONS
One of the main issues which brings down a successful business is growing too fast and not being able to manage growth. Just because the opportunity is there doesn’t mean you should always take it, or perhaps take it at a pace which suits your business. You’re not in business to dig yourself an early grave.
Developing or taking on a new product line can mean big changes to your business, and significant planning is needed to ensure the rollout internally and the launch to market is done in such a way as to add value to your bottom line. Incremental growth can be a good thing.
- BEFORE YOU GET INTO TROUBLE
There’s a point in any business when nothing can be done to save it. The debts are too great, cashflow too tight and impossible to trade your way out of the current situation. Getting good advice at this point is a bit late in the game. Calling an advisor before you run into problems is the best time to help sustain and grow the business. We’ve had situations in recent years where new clients have reached out when it’s too late to save the business, and the best we’ve been able to do as accountants and advisors is limit the personal loss and save our clients’ personal assets. It’s not always possible however as the business structure needs to be set up in such a way to protect personal assets, in case the business runs into difficulty. Had we been called in earlier it could have been a vastly different outcome.
You’re not born into business knowing everything, and having an independent sounding board can benefit your business and lifestyle in so many ways.
If you’re not currently engaging a business advisor, why not reach out and have a complimentary chat with one of ours – it won’t cost anything but may open your eyes to the possibilities they can deliver and they could see something coming that you don’t.