Go From Lone Wolf to Leader of the Pack

It’s a pretty safe bet that if you own a viable, privately-held business you have excellentoperational skills. Day-to-day you “make the trains run on time.” But how well do you recognize and evaluate options or make good decisions when it comes to strategy? Can you identify bold moves that will propel the business beyond incremental growth – and how well do you implement those bold moves?.

My good friend Scott Barth, founder of ascendBIZ2, recently shared with me his insights about how most successful business owners he works with assemble an advisory team with expertise in seven key areas.

Team structure and operation

In some cases, the “team” is the owner’s collective set of relationships with one or more trusted experts, like a CPA or a banker. This business owner typically deals one-on-one with each subject matter expert (SME) as problems arise or when the owner takes the time to contemplate big-picture issues.

At the other end of the spectrum, the business owner convenes his or her team of advisors on a regular basis, typically quarterly or annually, in some type of strategic planning environment. In this setting, the SME’s focus their expertise on critical, long-term matters related to the health and future of the business.

There are other advisory team models, of course, but the important thing is that privately-held business owners need to find a way to harness the collective, professional wisdom of their advisory team members.

Team members

Scott also shared with me this list of skills that should be represented on the team:

  1. Advisory CPA – Engage a CPA for more than just tax preparation. In a future article, I’ll explore some of the areas where a CPA offers much more than tax advice, such as financial health and break-even analyses and key performance indicators.
  2. Banker – Don’t just choose a bank. Build a banking relationship-yes, with an actual person. Down the road, we’ll discuss the many tools and areas of guidance and support a banking partner can offer.
  3. Business attorney – Choose an attorney for the long haul-someone who will offer proactive advice at every stage of the company’s evolution.
  4. Wealth management adviser/wealth planner – Find a trusted adviser who charts a course for your financial security and factors in how your company fits into the picture.
  5. Business coach/consultant – As your business grows, shift from mentor relationships to coaching arrangements with advisers who create the accountability most business owners need but few actually experience.
  6. Valuation specialist – Work with a valuation expert who can define and fine-tune the formula for building wealth and value within the company.
  7. Human resources expert – This is a complex and constantly evolving field and a good candidate for outsourcing. Business owners need someone on their team who can readily benchmark best practices in this area.

In future articles I’ll write about my interviews with some of these SMEs and give you more specific examples of how they can help you, such as:

  1. How to determine the true value of the business and identify the value drivers that will make the biggest difference over time.
  2. How to and why an attorney needs to serve as a legal advisor and personal business advocate rather than just a hired gun.
  3. Why an entrepreneur should never be the person to scale the business.

How will you know the right fit?

Scott emphasized that a potential team member must be willing and able to serve as a consultant and not just as a service provider. He put it best: “You can identify all these skill sets and people-CPAs, attorneys, and so on-and if you can legitimately put the word ‘consultative’ in front of the profession when describing that person and their skills, then they may be a good fit for your advisory team.”

How to find the best people for your advisory team?

  1. Vet the candidates and get to know them well, until you’re confident they’ll be able to provide the guidance and expertise you need.
  2. Seek out recommendations and referrals from other successful privately-held business owners and advisors you respect.
  3. Make sure they are critical thinkers and offer skills that you don’t possess.

If you’d like to meet Scott, or if you’d like some ideas about candidates with these skills to serve on your advisory team, please feel free to call me at 303-831-1411.

Steve Bush, attorney at law, founded Steven M. Bush, a Professional Corporation in 2003 in Littleton, Colorado. The firm specializes in representing privately-held businesses and their owners on a range of legal matters.