A business advisor is a strategist who works with other companies to help with planning, development, finance, and even marketing. Business advisors are like extensions to businesses who are capable of providing their expertise in different fields of work for running a business.
In simple words, a business advisor is a person who helps to solve business problems and complete objectives successfully. An advisor can be a generalist, financial planner, marketer, manager, or mentor. A strategic advisor also works as a startup advisor or small business advisor to empower new startup companies.
Business advising and consulting are often grouped together but they are two distinct terms. However, the approach to solving problems of an advisor and a consultant is quite similar. A business advisor typically works with clients in long term and takes leadership roles while a consultant works in short term and solves specific issues in a business.
Small businesses need advisory and consultancy for proper planning and operation as they need more and more expertise in order to grow. They are often restricted with operations and dependency on technology and manpower are comparatively weaker than established companies and brands.
Some facts about advisors & small businesses
It is said that the business advisory market is valued at around $12 billion. The industry has evolved remarkably by making changes. Mostly an advisory service is surrounded by four popular factors nowadays and they are information, expertise, insights, and execution.
Digital transformation has taken place in the industry with the implementation of updated technologies and artificial intelligence (AI) in the process of work. The gig economy stylization has reshaped the way how businesses work in India these days. The consultancy firms and advisory companies get paid on every project basis and not monthly salary. There is a demand for broader and greater knowledge due to globalization and access to information. Nowadays, clients are demanding performance-based payment systems as outcomes and results have become the major focus.
How do advisors work to help small businesses?
In general, small business advisors specialize in helping small business owners with a variety of approaches. They have a holistic approach to solving problems and provide real-time solutions. The recommendation provided by the advisors is totally or partly customizable based on goals, objectives, industry, business models, and requirements. The answers to all the questions on certain topics who have expertise.
The advisors help a business with a wide range of products and services that they can offer. While hiring a suitable advisor, similar kinds of answers and solutions will be provided to a business owner. They also provide tailored recommendations to make the most out of the products and services that they offer.
These duties and responsibilities of business advisors are organized for planning and executing various business strategies to improve businesses and reach goals. Understanding the skills and responsibilities can determine what a particular advisor offers to one’s business.
Duties such as educating staff members and clients with industry knowledge, sales, and marketing, company goals, and relationships with clients. Researching and analyzing reports is an integral part of advisory responsibility. It also involves budgeting and looking after the financial aspects of a company.
The advisors also analyze the marketing performance of a business to improvise. After evaluating the current business strategy of a company they try to improve in any possible way to give a better outcome. Identification of opportunities is crucial and the advisors seek opportunities for business expansion. As they are called advisors, they often advise the employees, suppliers, contractors, and any key individual associated with a business to show them the path with clarity.
The advisors also study consumer behavior and make significant changes in the products or services and company policies to gain better reviews. They arrange meetings with clients, customers, and employees. Discussion on performance and outcome happens through the process of advisory.
The advisors sometimes also look after the collaborations with different companies, agencies, and investors who can support the best to grow. Last but not the least, they take performance tests on product and service quality and implement various methodologies for improvement from customers’ perspectives.
Altogether a well-certified small business advisor possesses diversified important skills that can help small businesses to grow from different angles. Not all advisors have all the skills and knowledge some of them have expertise in certain subjects but in a firm as a whole, they take care of various aspects which is a cluster of different sets of skills and knowledge.
That is why there are different kinds of advisors in different departments/fields in the Indian market, such as
- Strategy
- Marketing
- Operation
- Information Technology
- Management
- Tax
- Legal
- Recruitment
- Sales
- Digital Transformation
- Public Relation
- Financial
Qualities to identify in a business advisor
While hiring successful advisors for a business there are some skills and experience one should make sure those qualities are present. Consulting qualities must be really strong and clear. Performance management must be present in an advisor for execution. Handling clients and maintaining good client relationship skills should exist. Research skills should be there along with good sales and planning qualities. All these traits can assure an excellent advisor.
Major reasons to hire advisors for small businesses
Advisory services can bring positive and valuable inputs to a business. The whole purpose of hiring small business advisors for small business owners is to drive the business forward in the venture. Small business owners and startups are setting up advisory boards for themselves.
Small businesses are seeking advice and information in an organized and assured way. A small business advisor is important to gain further insights and oversight into specific areas of small businesses. Information is the most useful tool which can be used to grow a business in various ways. If a business owner is looking for early-stage marketing validation then advisors can lay down the foundations of branding.
New startups often struggle with achieving goals and that is why getting planning ideas from advisors can be really useful. They will also perform networking to bring investors who will help the small businesses. As a whole, small businesses are turning towards professionalism and that is only possible if there is expertise on board to carry out operations for small businesses.
Conclusion
The question is, does a small business really need small business advisors/startup advisors. The answer is, if the business is lacking expertise and proper insights or any experience which is bringing obstacles to carry the business forward then it is necessary. Without proper knowledge, skills, and connections, it is really hectic and tough for a business to grow.
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