I never thought I’d see so many bad habits among such smart people.
Taking Bad Business Advice
No, I’m not talking about personal habits, or even business decorum. I’m talking about taking bad business advice.
- How to handle money.
- How to think about building a business.
- How to grow your company.
- When to take this action or make that move.
It’s really a shame that so many people selectively listen to business advice from professionals and then only do the things they want to do.
Case In Point
Case in point: A prospective client many years ago refused to follow my advice on hiring a bookkeeper due to the costs (for less than $500 a month). His company was, at that time, making nearly $5 million annually, and as you can imagine, his tax preparation fees were astronomical. He decided to simply do it all himself because he’d “save” several thousand dollars each year, and guess what?
When Under Armor offered to buy his sports clothing business, his inexperience and lack of professional assistance cost him millions. Not only did he undervalue his company. But the resultant managerial and structural mess made the transition expansive and time-consuming. Between the mistakes he made in how he ran the company and his personal income, he ended up paying nearly seven figures in taxes.
All of this could have been avoided if he had followed competent business advice. But instead he took advice from folks who had never been in his position before. And he paid the price.
Who Do You Take Business Advice From?
Who did he take advice from? His friends, who were not entrepreneurs. His family, who had never run a large company. His reliance on these people and his own insistence on doing things himself actually made things harder for him.
Take A Hard Look At Who You Take Advice From
This week, take a hard look at the people who give you business advice.
- Why do you take it?
- What is their experience level?
- Are they truly qualified to counsel with you over serious business matters?
Analyze How You Pursue Your Business
More than this, take the time to analyze how you, yourself, pursue your business.
- Are YOU ready for the next level of success?
- What do you need to do to close that gap?
- Is it time to consider moving to a C-corp? An S-corp?
- Do you need to hire professionals, an assistant, or bring on a partner?
- Where can you create systems and processes to automate repetitive tasks?
It’s good to be so successful you’re overwhelmed. That’s what we’re all searching for: the next phase of expansion that requires new thought, new processes, and new people.
I am here for you to help bear the burdens that will come, so please reach out and include me in the process. As a lawyer and a CPA, I’m a reliable source of trustworthy advice. And I’m only here to help you do more, better.
