Lining up the Adviser Team

It’s not uncommon for business owners and leaders to wear many hats, but some roles on the company roster may be better suited to the experts.

Whether it’s to crunch numbers, analyze markets or handle financial risk, business owners and entrepreneurs can enlist advisers across several industries to help start a business or keep an established company healthy.

While every situation is different, there’s a core team of professionals that can be beneficial to any business, according to several area advisers and business owners.

Adviser: Mentor
Function: Guide
When Connie Tram opened the Amazin Asian restaurant in May, it was her first foray into the restaurant business.

But she didn’t go in alone: Her husband’s sister and brother-in-law own a restaurant in Kansas, and her business partner, Kong Chiu, previously spent a decade as a head chef.

All of that experience didn’t go untapped, she says, noting she’s received advice from their experiences.

“We just bring everything together,” Tram said.

For many businesses, particularly those just starting up, a noncompeting business mentor with industry experience can provide guidance and advice, said Bill McNeill, president of Springfield’s SCORE chapter, a U.S. Small Business Administration resource partner that provides free counseling and fee-based workshops for small businesses.

“There’s a lot of expertise available that businesspeople can access,” McNeill said. Though new entrepreneurs may be reluctant to ask others in the businesses community for help, McNeill added, “People who are successful and experienced are flattered when people ask them to be a mentor.”

To find mentors, McNeill suggested joining the relevant and local professional or trade organizations or service-oriented groups such as Rotary Club.

“You can meet a lot of really experienced businesspeople that way,” he says.

Adviser: Attorney
Function: Structure & Protection
Next on the docket is an attorney, said Tara Horton, training coordinator at Missouri State University’s Small Business & Technology Development Center. For startups, she said, attorneys can help determine the best structure for the company.

A company’s method of incorporation, such as forming a limited liability company, determines how tax laws apply to that business, said attorney Chip Sheppard, chairman of business dispute resolution at Carnahan, Evans, Cantwell & Brown PC.

Attorneys aren’t just for new businesses, however, as they also can help with legal issues related to trademarks, patents and employment contracts – and when a business starts looking for investors, Sheppard said.

Each type of issue comes with specific documents that provide protection, and without them, companies could face expensive litigation later, Sheppard said.

Adviser: Lender
Function: Unlocking Capital
Anthony Woodrow started his hair salon, Cutting Image LLC, in June, after graduating from Springfield’s Academy of Hair Design. He used $4,500 from his savings to get started and didn’t work with a lender – but he expects that will change.

“I think I’m probably set for now,” Woodrow said, “but I think in the future I’ll probably need them.”

McNeill agreed, noting that solid relationships can be beneficial for businesses such as Cutting Edge as they grow.

“Banking is like anything else: There are relationships involved,” he said.

That relationship should include open lines of communication, said Rayanna Anderson, director of MSU’s SBTDC.

She noted that the timing for establishing a business-banker relationship is important. “Sometimes small businesses, they wait until they have an immediate need for cash before they try to have a lending relationship,” she said. “Therefore they’ve already eroded some credibility.”

Adviser: Certified Public Accountant
Function: Numbers Tracking
Anderson and McNeill agreed that an adviser who can not only track a company’s financial details but also explain them to the business owner is crucial – and McNeill said he’d go so far as to put an accountant at the top of the list of must-have advisers.

“If you don’t understand your business numbers, you don’t understand your business,” he said.

Tram said she works with an out-of-state accountant who helps her with tasks such as preparing monthly financial statements. “Our accountant gives us advice on how to establish a solid financial base,” she said.

A bookkeeper or more informal accountant can track day-to-day figures, Anderson said, but a CPA brings oversight and a working knowledge of tax laws and Internal Revenue Service regulations that could otherwise be missed. Though she declined to disclose the company’s name, she recalled working with one business that found itself on the wrong end of a $200,000 IRS fine because of financial mismanagement.

Adviser: Marketer
Function: Message Delivery
A marketing adviser can help a business craft its advertising plan and refine its product line, said Keith Acuff, CEO of Springfield advertising agency Noble.

“If they’re good at it, they’ll bring an independent perspective on what the market looks like,” Acuff said, noting that they should be able to optimize products and advertising plans to fit. “You need someone who deals with that every day.”

Marketing advice also can help business leaders determine the best media for advertising, be it through print or social media, said Kelley Still, director of the Edward Jones Center for Entrepreneurship at Drury University.

“You’re just going to need some advice on what avenues are going to be effective for you,” she says.

Adviser: Insurance Agent
Function: Risk Mitigation
Every business operation, from Web development to zip-lining, deals with its own kind of risk, Still said, and an insurance agent can help them handle it.

“There’s just all kinds of funny liabilities,” she says. “Insurance is more important than a lot of people realize.”

Contractors often have to demonstrate the insurance they carry to land contracts, Still said, and any business that gives advice or consultation needs its own errors and omissions coverage.

A good insurance adviser is one who can help a business figure out which liabilities apply to them, and what types of insurance fill the gap, McNeill added.

Adviser: Information Technology
Function: Computer Systems Management
As the market becomes increasingly mobile and digital, businesses should consider an information technology adviser, said Tom Douglas, president of JMark Business Solutions Inc., which provides IT support.

“One of the biggest risks businesses have nowadays ... is having their data compromised,” Douglas said, pointing to employee and customer information. “We take on full responsibility to make sure the network is sound.”

IT advisers also can help with company Web sites on the back end, handling technical issues for functions such as online ordering, Still said, noting that not all companies might need an IT adviser.

“Unless you’re looking at multiple employees and you want to be on some kind of network system, that’s probably a decision you could push off for a while,” Still said.