Right Partners
Dear Readers,
Alejandro has been running a successful restaurant for the past dozen years. He has worked hard, growing his team, expanding his locations and increasing his revenue throughout the past decade. He is at a point in his business when he realizes that he needs additional outside expertise. He asked, “what are the critical key partners I need to have in place in order to continue to advance my business?”
Josh: Alejandro is definitely asking the right question. There’s an old adage that says: “You know what you know. But, you don’t know what you don’t know, until you know it.” That’s why most successful business people have honed a narrow list of trusted business advisors to help them navigate the ongoing challenges of running a business. Each plays a pivotal role, and they often work in concert with one another to optimize your business. They help you in the areas of “you don’t know what you don’t know.”
Pedro: What are some of those trusted advisors you would recommend?
Josh: You need a banker who’s on your side. You may not currently consider your bank to be a trusted business partner. If you only have a transactional relationship with your bank – that is, a checking account – then they wouldn’t necessarily be considered a business partner. However, as your business grows, you’re likely going to need a strong banking relationship. Establishing a relationship with a local banker is a very good idea. My suggestion is think small. A small local bank is a small business just like you. Small bank is more likely to understand and be willing to help. If you want someone who will truly work with you to understand your business, look to your local bank. They have a vested interest in the success of the local community, and therefore a vested interest in your success, too.
Josh: What external relationships do you think are critical to have in place when growing a business, Pedro?
Pedro: A certified public accountant (CPA) is mission critical to your business. While they may help you with some of the month-to-month challenges of your business, their greatest value often comes in helping you prepare for your annual taxes. A knowledgeable CPA understands your business, has a grasp on changing tax laws, and will help assure you’re prepared in the event of an audit. Plus, even if numbers are your thing, your time is better spent running the business.
Josh: I also believe having the right attorney working on your behalf is often the difference between success and failure. And it’s typically not just one attorney, but a handful who become trusted advisors. Initially, you will want to find a corporate attorney. They specialize in contracts and the details of deals. As your organization grows, you may need to hire a labor and employment attorney. Understanding the unique challenges of hiring, keeping and terminating employees will save you thousands of dollars, keep you away from potential legal battles, and help you sleep at night.
Pedro: Any other trusted advisors you would recommend?
Josh: Yes. Tapping into free resources like a SCORE business mentor is a great idea. The SCORE Association, supported by SBA, is a nonprofit association of thousands of volunteer business counselors throughout the U.S. and its territories. We have a local chapter right here in Kansas City. SCORE mentors are trained to serve as counselors and advisors to aspiring entrepreneurs and business owners.
Pedro: Alejandro, like other business owners, has worked diligently to build his business. He’s hired the right people, made tough choices, and made informed decisions. Developing a short list of trusted business advisors is critical to the success of your business, to your long-term financial security, and to your personal peace of mind.
We’d love to hear from you. We are offering $100 to the reader whose question is selected next. Please submit your business questions to together@lead.bank.
