How to evaluate your accountant, advisor or mentor

"I am a massive fan of the right business advisors. I wish I had not been so arrogant in the early days of my business and had taken soundings from people" Michael Jackson, former Chairman of Sage and Chairman of Elder Street Investments

Entrepreneurs should know that "Innovation flourishes when knowledge, skills, energy and experience interact"

Business owners can benefit tremendously from the services of business advisors, but they need to pick the right ones and then develop a good relationship in which the skills and experience of the advisor are effectively used to achieve the objectives of the owner.

Business advisors help clients in 3 broad categories

  • Compliance with regulations and financial reporting - all accountants should offer this
  • Project or transactional assistance - e.g. a lawyer helping with a trade dispute
  • Business strategy, implementation and performance leading to financial and other gains for you and for your business - more difficult to source but with a high benefit

 Evaluate your advisors against the following criteria (High, Not Bad, Needs Improvement):

1)   Practical experience of growing businesses including knowledge of techniques used in other sectors
2)   Demonstrable experience of successfully advising other business owners
3)   Access to the full range range of business skills and disciplines
4)   Independence and impartiality
5)   A willingness to support your business in the long term
6)   Flexibility: reasonable availability at short notice
7)   An enthusiasm for your business
8)   An understanding and sharing of your vision for your company
9)   Good contacts
10) A willingness to challenge your thinking
11) The ability to take problems away from you and implement solutions independently
12) A good decision maker
13) A good personal relationship with you and your colleagues 

 and critically - 'On balance, an asset to your company'

Frequently Business Advisors are viewed as a cost, even a necessary evil. The answers to the questions above should help you invest your time and money in advisors that will make a positive difference

"Businesses seeking advice three or more times a year have twice the profit growth of people who do not seek advice."

Source: Barclays/clearly business dot.com: