Starting A Business: Using an Advisor

“A smart man learns from his mistakes; a wise man learns from the mistakes of others.” – Unknown.

Do you need advisors? That depends if you have prior experience in setting up your business. If this is your first time, it is good idea to consult with your advisors. The mistakes you make could cost you financially and in terms of lost opportunities and wasted efforts.

Talk to people who have started their own businesses. Find out how they started their businesses and how they coped with the initial stages. If they could turn back the time, would they have done it differently?

Also, lenders and investors will review your project before they will lend or invest into your project. In preparing your business plan, you should also go through the same process and professional advisors can often point you into the right direction in this regard.

Consultants could also pose questions you might not have thought of. For example, you might plan to open a branch in 7 neighboring cities in 3 years. The consultant will ask you would achieve this. He may also suggest you open more branches in your own cities first before you venture our so you can take advantage of economies of scale in your advertising and logistics spending.

Consult with a tax accountant and a lawyer. They are your technical advisors. Let them know what your vision is. They should then let you know the choice of legal entity suitable for your business, why it is a suitable choice and how to setup this entity.

You may also want to consult with other people operating within your industry. For example, your vendor is a supplier of raw materials for your manufacturing business. Perhaps they could give you some advise on the types of equipment you are considering to purchase and point you to new sourcing leads.

In summary, whether to use advisors or not is a matter of choice. The final decision is still in your hands.

Previous: Choosing a business structure.

Next: Capital financing sources.