Small Business Dilemma: To Hire or Not to Hire a Strategic Advisor

Introduction

Small businesses often face unique challenges as they strive to grow profitably and compete in a constantly evolving marketplace. As businesses grow, they also often suffer from those “growing pains” - where areas of the business struggle to adapt to the growth and problems start to arise. This is where a strategic advisor can help, but the decision to hire a strategic advisor is a significant one, as it can have far-reaching implications for the company's success. In this article, I'll explore the pros and cons of hiring a strategic advisor for a small business and help you make an informed decision about whether it's the right choice for your organisation.

The Value of Strategic Advisors

1. Expertise and Experience

Strategic advisors bring a wealth of knowledge and experience to the table. They have often worked with a variety of businesses, which means they've encountered and successfully addressed many of the challenges small businesses face. This expertise can be invaluable for navigating the complexities of growth and competition.

2. Objective Perspective

An external advisor provides an objective viewpoint. They are not influenced by internal biases or company politics, allowing them to make impartial assessments and recommendations. This objectivity can help uncover blind spots and identify opportunities for improvement.

3. Strategic Planning

Strategic advisors specialise in crafting and implementing business strategies. They can help small businesses define their goals, develop actionable plans, and provide guidance on how to achieve them. This strategic focus can be a game-changer for companies seeking to grow.

4. Network and Connections

Experienced strategic advisors often have extensive networks and valuable industry connections. This can open doors to partnerships, collaborations, and opportunities that small businesses might not have access to otherwise.

The Drawbacks

1. Cost

One of the most significant considerations for small businesses is the cost of hiring a strategic advisor. Expertise doesn't come cheap, and while their insights can be valuable, small businesses may find it challenging to allocate budget resources for this purpose. That said, the cost should be weighed up against the benefits which may well be significant.

2. Resource Constraints

Small businesses may lack the resources or infrastructure to implement all the recommendations provided by a strategic advisor. This can lead to a gap between strategy and execution. However, the key here is in finding the right advisor for you - someone who understands what you need and can “right-size” their recommendations.

3. Loss of Control

Bringing in an external advisor may feel like relinquishing control over key aspects of the business. Some small business owners might be hesitant to accept advice that goes against their instincts. The key here is to choose the an advisor that you feel comfortable working with - a good relationship is key!

4. Over-Consultation

In some cases, small businesses may hire advisors and then become overly reliant on their guidance, rather than developing their problem-solving capabilities. It’s important that you are able to take the advisor’s advice and guidance and build from it.

Making the Decision to Hire a Strategic Advisor

Hiring a strategic advisor can be a pivotal decision for a small business. Here are some factors to consider:

1. Clear Objectives: Define what you hope to achieve with a strategic advisor. If your goals align with their expertise, it's a promising sign.

2. Budget and Resources: Evaluate your budget and assess whether you can allocate funds for advisory services. Consider whether the potential benefits outweigh the costs.

3. The Right Fit: Choose an advisor with experience in your industry or a track record of working with businesses of your size. The right fit can make a significant difference.

4. Balancing Act: Striking a balance between following advice and maintaining control over your business is crucial. The advisor should complement your leadership, not replace it.

Conclusion

The decision to hire a strategic advisor for a small business is not one-size-fits-all. It depends on the unique circumstances, goals, and resources of your company. While the costs and potential challenges are real, the benefits of expertise, objectivity, and strategic planning can be transformative. Ultimately, the decision should align with your growth objectives and the specific needs of your business. When executed thoughtfully, bringing in a strategic advisor can be a valuable investment in the future success of your small business.

Photograph by Niels Sienaert. Used under CC by-nc-nd 2,0 licence with no changes