Are you getting good advice? (Part 1)

Posted by Laddie Blaskowski on Mar 21, 2007

As you well know, advice is usually not hard to get. I suppose it’s human nature to want to express an opinion, but it’s amazing how quickly some people jump in to offer advice about how other people should run their businesses. The laughable thing is that most of these folks really know nothing about those businesses or what will constitute success.

Almost none of the problems you will face in your business are new, although they may be new to you. You can benefit greatly from others’ advice, but the trick is to find people who have actually experienced the same or similar problems and have already found solutions. Or people who are knowledgeable about business and the types of matters that concern you. In other words, good advisors.

All business owners should surround themselves with advisors who can help them make decisions and assist with problems that arise.

Usually, in discussions about creating “boards” of advisors, two questions arise: (1) “What are the qualities that make a good advisor?” and (2) “How can I find these types of people?” This article address the first question and Part 2 will deal with the second.

First of all, understand that we’re not talking about friends to whom you turn for advice. Friends are wonderful to have and we all need them. However, in this article we’re dealing with people who are actually qualified to advise you concerning your business.

Qualities your advisors should have:

• They should be willing to take the time to learn about your business and what you’re trying to accomplish. They can’t give you good advice if they don’t understand what you do.

• They should truly care about you and your business. An advisor holds a fiduciary role, meaning that they hold your interests in confidence or trust. Therefore, it’s very important that they have your best interests at heart and not agree to be in an advisory position merely because of what they will be paid or receive in return.

• They should have knowledge, experiences, and/or access to information that you don’t have. If they don’t know something you don’t know, then you don’t need their advice.

• They should be willing to listen before giving advice. This may sound obvious, but many people are in such a rush to state their opinions that they don’t take the time to really hear what you’re saying.

• They should know when to say, “I don’t know.” Egos can be deadly. Advisors should never give advice when they know they are unqualified to do so.

As you can see, the qualifications for being an advisor are stringent. But when you realize the possible ramifications of taking their advice, it’s clear that your advisors need to be held to a high standard.