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Essays on Running a Small Business: Band of Heros As we build a business, the people who work with us include partners, employees and a group I call the Band of Heros. These heros are all of the professional service providers who are so necessary to the building of a business. The list probably includes your banker, lawyer and accountant and maybe a marketing consultant, and a business coach. Identifying and working with these people is a key management skill often overlooked by small business owners.
The time to meet your banker is not when you have just lost a key customer and are desperately short of cash, and need a loan. The time to look for a lawyer is not when you have just been sued. And we all know the time to find an accountant is not April 14. Finding, recruiting and working with the right professionals is just as important as hiring a key employee. If you treat these professionals as part of your management team, you will have much better results managing your business.
Most businesses need a loan at some time, whether it is a line of credit to handle short-term cash flow problem or a loan to purchase a major asset. What I have found works the best is to make an appointment and meet with the Bank Manager early in the process of building your business. Discuss with him/her your plans, and show them your business plan projections. Discuss at what point you might need a loan or other services like a credit card facility. Then keep them informed as to your progress. When you do need their services, chances are better they will be willing to take a risk with you. Bankers do not like surprises.
If you are buying or selling a business, incorporating or formalizing a partnership, a lawyer is essential. These activities are too important and serious, to handle yourself in the interest of saving money. The same goes for an accountant when it comes to taxes or an audit. Having a lawyer and an accountant with whom you have had a trusting long term relationship, and who knows you and your business, is very valuable.
A business advisor or business coach is someone who has direct experience in the mechanics of building a business. Most likely you are in business because of your technical specialty. That specialty may be carpentry or cooking or physical therapy. Building and running a business is a specialty too. And if you are not expert at running a business, a business coach can help. I often hear small business owners say that their accountant said to buy an expensive piece of equipment or their lawyer advised them to expand into a new area. You would not ask your gardener to repair your car. Your business advisor should be the one you ask for help in making key strategic decisions.
An old carpenter once told me that the least expensive and fastest way to do any job is to do it right the first time. That goes for your business too. Knowing when and who to ask for help is part of the art of building a small business. |
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Copyright © 2004
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