An independent advisor provides startups and family companies with an additional value and helps them last through time, to not fail a few years later.
Pymes and family companies represent a large percentage of all companies in Canada and in the U.S. However, many of those fail at an early age. What is happening? This is why many institutionalized societies in the actuality have decided to integrate an independent business advisor.
Having a business advisor gives a positive influence and brings great help to the societies that have it. Let’s not forget that an important part of a company success is because they have an independent advisor.
Unfortunately, the statistics reveal that only 1% of the companies have an independent adviser, on the other side: the companies that have independent advisers have found that their work has improved company decision making policies by 100%. Despite this, the presence of these is restricted almost exclusively to specialized sectors such as financial services, information technology and pharmaceuticals.
Why is it an advantage to have an independent counsellor? The answer is simple, this brings a new perspective, a more objective vision, impartial and free from interest conflicts. Added to this, his experience and knowledge in diverse branches such as the market, financial management, commercial and operative, allow for a higher input for a company.
Understanding this we may know that is very important to choose our advisor carefully, we must observe that it has certain qualities depending on what a company may need. Nevertheless, even though it’s important to go for a profile according to the needs of a society. Let’s not forget that
we need to observe certain additional qualities like being an honest person, that isn’t friend with any of the council members, that doesn’t live from the company, that maintains exclusivity and
that isn’t permanent.
10 advantages that independent counsellors can have in startups and in family companies.
- They can provide knowledge and experience
- They generate neutrality in the decision-making process
- They care about the interests of minority parties
- They give an external vision
- They provide with power equilibrium
- They promote transparency
- They give the brand bigger prestige
- They give trust to the minority parties
- They attract new capital
- They increase the value of the shares
Besides these advantages, the inclusion of independent counselors in the direction and administration of a company can give it an additional value allowing the company to last through time and stopping it from failing in a few years.
Having this figure inside of the company can bring you a lot of benefits, considering also that it’s important to have into account that the recommendation of having 3 counselors it’s not always available to small companies, given that the expenses may be a little bit large. What’s ideal is to select someone that has a focus in an opportunity area that we consider fundamental within the company.
Did you know? your online reputation is becoming critical!! 81% of consumers say their #1 source of local business information is a search engine or online business directory! There are dozens and dozens of sites that people rely on. When your business information is missing or incorrect on just one of those sites, you’re guaranteed to lose business. Let one of our specialists walk you through with recommendations that matter!! ready to start? get your FREE snapshot report!