Small businesses don’t have in-house departments for payroll, legal, accounting, IT, marketing, etc. Many small business owners try to DIY for all of these specialties. It’s understandable; professionals cost money. But this can be short-sighted.
Why and how you can grow your business by developing a team of professionals:
Why use professionals?
There are a number of compelling reasons why it’s better to use professionals than try to handle things entirely on your own. Here are a few examples:
- Cost effective. While professional fees can be pricey, it probably saves you money in the long run. The time you put into handling things better left to professionals can be devoted to running your business, and may generate more money than what you pay for those fees. Also, it probably can help you avoid problems that could be very costly…tax penalties, legal awards and settlements, data breaches, to name a few.
- Higher level of expertise. Despite your research and abilities, experts already have the knowledge required to address your needs. They may, for example, raise issues you never thought of and provide solutions.
- Connections. Professionals have a network of relationships that can be tapped for your business needs.
- Risk management. You may not be able to identify potential risks; that’s what professionals can do for you.
Who’s on your team?
Think of yourself as a quarterback of a football team. Who’s on your team? Your draft picks should include a number of professionals you can call upon as needed. These include (but are not limited to):
- Financial professionals. You need a CPA or other tax pro to handle your tax matters and provide tax advice. You can minimize cost here by using an in-house bookkeeper or doing your own books with an accounting solution (e.g., QuickBooks) and then sharing your records with your tax prof.
- You may also want to use an outside payroll company to handle payroll obligations (e.g., paying employees, submitting employment tax returns).
- And you might consider a retirement plan expert and even an investment adviser, depending on your business needs.
- Legal professionals. It’s great if your sister-in-law or your next door neighbor is an attorney, but be sure to have the right attorney to meet your needs. Attorneys specialize, and you need a different one to handle a property sale or purchase, employment tax issues, contracts, etc.
- Technology professionals. If you need a new website, it may be better to have a professional create it.
- Be prepared to address issues that can arise. Your business may come to a grinding halt if your website goes own or you experience any malicious activity.
- Have IT people who can provide immediate expert assistance.
- Risk management. Every business needs insurance to protect against potential threats…property damage, liability claims, etc. Have a good insurance agent who understands your business and can advise on the types of coverage you should have, and help you secure them on a cost-effective basis.
- Marketing activities. Depending on the nature of your business and the level you’re at, you may want to use a marketing consultant, a social media manager, and a sales consultant.
- Personal development. If you want to grow your business, self-help books and podcasts may not be sufficient. You might want a business coach to help move you forward.
How to find professionals?
So, you know why to use professionals and which you need to find, now how do you do it? Here are the ways I’ve used:
- Referrals. Ask your accountant to recommend a lawyer who can answer a question about your employees or another one to handle a contract dispute. Your local banker probably knows lots of professionals in your area. Through your network activities, ask other business owners in your area for referrals.
- Professional trade associations. Bar associations, state CPA societies, etc. have online directories to help you find a professional in your area. Your local chamber of commerce probably has a directory too.
- Online platforms. Be wary, but there’s a vast pool of talent, and you may find a great professional as long as you use caution and carefully vet prospects. For example, check out professionals through LinkedIn.
Final thought
You can find out just about anything through a YouTube video, but it may not be the best strategy to grow your business. Expand your contact list to include professionals you can turn to on an as-needed basis.
To learn more concerning developing a team of professionals or experts, see blogs here.
