Business Advisors – pros and cons

Oct 9, 2022

I have observed how business advisors have both enhanced and destroyed several business models, especially during the scaleup phase. If you are an entrepreneur or small business CEO, take heed .. there are lessons learned on building a solid business advisory network to help grow your business.

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Key takeaways

Why business advisors

A business advisor is anyone who can help you solve business problems, lend an ear or shoulder, or bridge a gap in your knowledge and skills. When challenges seem insurmountable in your business, or you are stuck for growth, ideas or specific skills .. then see an advisor to help you achieve:

  • have specific goals you can’t meet
  • are dealing with an issue you don’t know how to solve
  • need specialist support.

Business owners

Visionary entrepreneurs have that constant desire to change things for the better, but may be more idealistic than realistic, meaning they may not be the best person to run or grow a business.

Beyond problem-solving alone, most businesses are also looking for ways to ensure their practices are up to scratch, challenge their way of thinking, and accelerate their strategy, and as a business evolves, the range of challenges it’s likely to face can expand exponentially. Growth of the business.

  • Expansion into new markets.
  • Organisational change and transformation.
  • Handling a major crisis or critical incident.
  • Navigating a business sale, exit or acquisition.
  • Tackling a specific business problem.

Advisory Board Centre model notes that until businesses are generating $4m+ in revenue, they are unlikely to utilise Advisory Boards, or might have some occasional project-related advisors to stimulate business long the way.

https://www.advisoryboardcentre.com/

  • Smaller businesses generally seek advice informally.
  • Incubator and accelerator programs aim for higher quality engagement of advisors in their programs.
  • Established businesses are more likely to engage an advisory board during periods of change or growth.

Advisory can go terribly wrong

  • Friends and family can be inexperienced or too agreeable
  • Boards from the same industry and same skills, can be too agreeable and have common blind-spots

Advisory can go incredibly well with diversity

Good reads

Timestamps:

  • [00:47] Why have a business advisor
  • [03:12] Small business needs
  • [04:34] When advisory goes terribly wrong
  • [05:17] Example 1 – unprofitable model
  • [06:19] Example 2 – lack of diversity
  • [06:59] Example 3 – medical advisory boards
  • [07:39] When advisory goes well

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