HME Dream team
with Bruce Burns
Q. What is a business advisory team and how can it improve my business?
A. Most independent business owners are just that. Very independent in their management style and the way they operate their business. In some cases that personality trait can be an advantage and lead to much success. In other scenarios it can limit and inhibit their success and financial worth. In many situations when a business owner started his business, he may have gotten inaccurate information on how to structure and organize the company: items like cash accounting versus accrual, which corporate structure should be utilized (subchapter S, LLC or C corporation) and setting up financial statements. These items and many more can have monumental effects on the annual profitability and the final selling price of the business if it is divested. In some cases we are talking millions - not thousands - of dollars in compensation to the business owner. It is critical to form an advisory team a business owner can talk to on a scheduled and as-needed basis. The team should be comprised of a business/mergers and acquisitions consultant, corporate and transaction attorney and a certified public accountant. Input from industry professionals can and will make a difference in the present and future performance of your company.
Bruce Burns is president of Affinity Ventures in Albuquerque, N.M. Email him at firstname.lastname@example.org.