How An Advisory Board Can Boost Your Bottom Line

Picture your first years in retirement.  Things are going great.  Days spent playing with the grandkids, sunny mornings on the golf course and leisurely walks on the beach.

However, if you are like many of our clients, you are relying on the sale of your business to fund your own version of nirvana.

The problem is that you are not exactly sure what you will get for the business, or even how long it might take to sell.  This can be a little scary for some – there is after all a lot riding on the outcome.

​I spoke with Certified Business Coach, Ian Judson, who specialises in helping small to medium sized business owners create more profitable, and ultimately more saleable businesses. He says;

For many business owners, the sad reality is that their business will not be able to realise anything like what they need so they can finish work. When it happens, it can come as a shock!! As a result, many are forced to keep working well beyond the normal retirement age or have to revert to government pensions and the like to top up their retirement lifestyle.

As retirement planning specialists, we believe it is just plain wrong that your future retirement success should be put at risk because you don’t have a succession plan in place. 
 
You’ve worked hard, taken risks, employed people - you deserve a stress-free retirement.

“We are small business owners too. We know what it feels like to be spinning in circles, trying to figure these things out for yourself” says Ian. “I learnt years ago that nobody can build a business alone. Whether it’s a start up or a well-established business, having access to high-quality advice can enhance the organisation and its owners chances of success.”

PRO TIP The sooner you start planning, the better the outcome will be.

​Far too often I meet people who are looking for their first piece of financial planning or business advice in their 60’s (or even later). Many of these people know, at least on some level, that they are woefully unprepared for their financial futures.

Timing is everything when it comes to preparing your business for sale.  If you have time to create strategies, financial goals can be accomplished.

Without time, you are stuck with a much less appetising menu of options.

​I asked Ian for his No. 1 tip on how to run a more profitable, and ultimately a more valuable and saleable business?   

The first step is for the business owners to separate the 2 functions or roles that they hold in the business.
 
As managers, they run the business. As owners, they also fund the business.
 
These are two completely different functions.  Owners need to treat the business as an investment in isolation from the management issues of running the business.
 
If the business owners can successfully separate the two functions, then they’ll have a far more saleable business.

Ian says the best way to do this is to start what he calls an “advisory board”. Often boards are seen as only necessary for the big end of town, but Ian says they should be used more by small and medium sized businesses.  I’m with Ian on this one.
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Every business owner needs help from time to time. An advisory board allows you to draw on the skills and knowledge of advisors who have “been there and done that”. 
 
After all, who doesn’t want fresh ideas that work, together with the accountability to make sure things get done.
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​It’s especially important if you are:

• Experiencing rapid growth
• Needing to raise funds
• Dealing with family disputes/conflicts
• Wanting to build strategic partnerships
• Needing assisting with staff development
• Facing challenges with other shareholders
• Facing major decisions and/or changes in direction
• Lost the commitment to the family or business

 
A client told me recently what they thought of their advisory board.

“Quite simply, the results speak for themselves. In the 12 months since we have had the advisory board chaired by Ian, revenue has increased by 74% and profit has almost doubled.  Simply outstanding.”

Most accountants are focused on accounts, compliance and how much tax is due from a couple of years ago. Yeh, that’s important, but I think most business owners are more interested in how they can grow their business, get more dollars in their pocket and increase business valuation.
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If you are a small to medium size business looking to grow, maybe an Advisory Board is the next logical step for you.

*Ian Judson is a Management Accountant and a Certified Business Coach with judsonscoaching.com.au.  

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​3. Work directly with me.

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​IMPORTANT This information is of a general nature only and may not be relevant to your particular circumstances. It does not take your specific needs or circumstances into consideration, so you should look at your own financial position, objectives and requirements and seek financial advice before making any financial decisions. To the extent permitted by law, no liability is accepted for any loss or damage as a result of any reliance on this information. See full Terms and Conditions here.