What Do Business Advisors Do?
While many titles in the business world are name-apparent, others sound familiar but leave you unsure about what the job entails. A business advisor is one of these terms. The job title of business advisor became fashionable in the 1970s. However, even in the 21st century, most people only have vague ideas regarding the job’s purpose.
What is a Business Advisor?
In general terms, a business advisor is a professional who offers information and ideas to heads of companies regarding ways of running their business with maximum effectiveness to achieve their sustainable business goals. A business advisor’s fresh ideas and objective, unbiased analysis are beneficial at all the life stages of a business.
What Do Business Advisors Do?
The term ‘business advisor’ is quite broad. There is not a single set of actions a business advisor takes part in, but they take care of several functions depending on their professional disciplines. The following are the most typical types of business advisors:
Accountants
This industry has the largest representation among business advisors. It is typical for business owners to meet with their accountants at least once a year. Accountants help business owners in several ways, including:
- Starting, buying, growing, or ending a business
- Taxes (although it is essential to note that Tax Accountants must be registered members of the Tax Practitioners Board)
- Income, deductions, and concessions
- Obligations to your employees
- Managing records
- Managing finances
Financial Planner
Your financial planner will gather information regarding your company’s financial situation and use it to create a strategy for businesses. The plan usually covers topics of:
- Investing
- Superannuation
- Retirement
- Succession planning
- Risk management
- Insurance
- Tax
Please note: The Corporations Act 2001 mandates that financial advisors hold an Australian Financial Services (AFS) license.
Legal Experts
Because business owners will face a wide range of legal concerns during the years they operate their company, a trusted legal expert is a brilliant addition to an advisory team when looking for business advice.
Insurance Brokers
Do not underestimate how vital an insurance broker is for businesses of all sizes. Without the proper insurance, a business owner could easily lose their life’s work over a single unfortunate occurrence. Having a regular consultation with an insurance broker is a smart way to ensure that coverage is sufficient.
How Do Business Advisors Help?
The idea of soldiering on alone or with just a few key employees at your side is an often romanticized idea of starting a company—unfortunately, the smaller the company, the larger the chance of going under.
This chart shows the survival rate of Australian businesses. If the company has a chance to grow, its survival rate dramatically improves.
Employee Survival Rates
| Number of Employees | Survival Rate |
|---|---|
| Sole trader | 56% |
| 1-4 employees | 68% |
| 5-19 employees | 77% |
| 20-199 employees | 82% |
| 200 employees or more | 83% |
Adding business advisors increases your chance of growing enough to survive.
Practical Ways a Business Advisor Can Assist Your Business
1. Strategic Planning
There will be specific highs and lows as you move forward with your business. Having someone proactive and looking down the road can prepare your company for challenges yet to come.
2. Learning and Development
A skilled advisor can enhance your learning and development by sharing their experience. Once you have a working knowledge of this, putting it into action is not difficult. Reducing the need for future consultation is another pleasant side-effect of working with a business advisor.
3. Another Set of Eyes
Often, business owners become bogged down trying to find a solution to a problem or the source behind issues. An impartial person can often spot what is going on behind the scenes and brainstorm adjustments.
4. Accountability with Flexibility
It is easy to rationalise why we have not gone through with plans. However, an advisor can remind you about the goals you have made and the necessary actions to reach them.
5. Confidence and a Clear Vision
Being in charge can feel like the weight of the world is on your shoulders. A business advisor can clarify opportunities and ways to move forward in the face of what may seem problematic. They can also show you reasons to feel confident in your decisions.
How Much is a Business Advisor?
You can get access to our expert corporate advisory team for only $300 per month.
Many factors can influence the price of a business advisor, including:
- Their experience
- The type of assistance required
- The frequency of contact
We are dedicated to meeting our client’s needs regardless of the company’s size. From essential services to assistance for those growing an enterprise, you can browse our packages to find the solution that is right for you within your budget.
Why Should You Work With M2 Corporate?
At M2 Corporate, your success is our over-arching goal. Our experts put their decades of experience and skills to work on behalf of our clients. Whether you need an occasional check-in to ensure your company is on the right track or we are a more constant part of your business routine, you can depend on us.
However, you do not need to take our word for it. M2 Corporate is proud to announce our designation as a finalist for Business Advisory Firm of the Year at the Australian Accounting Awards 2023.
We pride ourselves on giving our clients the information and service that helps companies grow.
**Please Note**
The information provided in this post is for informational use only. It is not considered legally binding financial or tax advice and should not take the place of a consultation with a tax or financial professional.
FAQs
- What is the role of a business advisor?
Business advisors provide guidance and advice to businesses on a range of topics, including financial management, marketing, operations, and strategy.
- How can a business advisor help my business?
A business advisor can help your business by identifying areas for improvement, developing strategies to address those areas, and providing ongoing support and guidance.
- What qualifications do business advisors have?
Business advisors may have a range of qualifications, including degrees in business, finance, or accounting, as well as certifications in specific areas such as marketing or operations.
- How do I choose a business advisor?
When choosing a business advisor, it’s important to consider their experience, qualifications, and areas of expertise. You should also look for someone who is a good fit for your business and with whom you feel comfortable working.
- How much does it cost to hire a business advisor?
The cost of hiring a business advisor can vary depending on a range of factors, including their experience, qualifications, and the scope of the work they will be doing. Some advisors may charge an hourly rate, while others may charge a flat fee or a percentage of the business’s revenue. Additionally, some state governments offer free advisory services.
- What types of businesses can benefit from working with a business advisor?
Business advisors can work with businesses of all sizes and across a range of industries, from startups to established companies.
- What are some common challenges that business advisors can help businesses address?
Business advisors can help businesses address a range of challenges, including financial management, marketing and sales, operations, and strategic planning.
- How often should I meet with my business advisor?
The frequency of meetings with a business advisor can vary depending on the needs of your business and the scope of the work they will be doing. Some businesses may meet with their advisor on a weekly or monthly basis, while others may only need occasional check-ins.
- Can a business advisor help me with fundraising or securing investment?
Yes, business advisors can help businesses with fundraising and securing investment by developing a business plan, identifying potential investors, and preparing pitches and presentations.
- How can I measure the success of working with a business advisor?
The success of working with a business advisor can be measured in several ways, including improvements in revenue, profitability, customer satisfaction, and employee engagement. It’s important to set clear goals and metrics at the outset of the engagement to track progress over time.
