30 May How Advisory Councils Benefit Business Brokers
In our previous article, we examined Doug Robbins’ views on the importance of businesses using an advisory council. He originally shared this information during our webinar entitled “The Advisory Council with Doug Robbins.” An advisory council isn’t just of considerable benefit to a given business, but also works to benefit business brokers and M&A advisors in a range of ways.
Having an advisory council and implementing their recommendations are, of course, two different things. It is important that any plans also have reasonable timeframes as well as a facilitator who can serve to motivate staff. As Robbins points out, to see a task through to the end you must create the passion necessary within a team.
An advisory council can be extremely valuable in that they provide a new perspective on the business. Through SWOT analysis, which examines the strength, weaknesses, opportunities, and threats, it is possible to gain great insight into a business and how it should proceed moving forward.
With a SWOT completed, it is possible to dive in and analyze where the business fits in the broader spectrum. SWOT will also incorporate a range of factors, such as marketing, the economic, geopolitical situation, and more. It will also evaluate a business to see how well it is organized, how well its people are trained, the state of their equipment and what level of capacity they are operating at.
While there is no doubt that helping a businessowner create and maintain an advisory council may be a lot of work for a business broker, there are ample potential benefits. As Robbins points out, there can be long lead times between contacting a businessowner and when that businessowner ultimately decides to put their business up for sale.
As Robbins observes, “You want to develop a trusting relationship with a client. This is really huge. You don’t want a client to think of you as a hustler, a salesperson who is just trying to sell.” Instead, a business broker wants a client to look at them as someone that they trust and respect.
Additionally, the process of creating an advisory council and implementing their recommendations can dramatically increase the value and salability, of a given business, which can lead to larger commissions and even referrals. Robbins points out, “I’ve received more new clients from past clients and advisory council members than I can shake a stick at.”
The bottom line is that an advisory council can help everyone involved. Advisors have an additional revenue stream, business owners are given new insights and advice that can transform their business, and you can firmly establish your trustworthiness and long-term value to clients.
In our previous article, we examined Doug Robbins’ views on the importance of businesses using an advisory council. He originally shared this information during our webinar entitled “The Advisory Council with Doug Robbins.” An advisory council isn’t just of considerable benefit to a given business, but also works to benefit business brokers and M&A advisors in a range of ways.
Having an advisory council and implementing their recommendations are, of course, two different things. It is important that any plans also have reasonable timeframes as well as a facilitator who can serve to motivate staff. As Robbins points out, to see a task through to the end you must create the passion necessary within a team.
An advisory council can be extremely valuable in that they provide a new perspective on the business. Through SWOT analysis, which examines the strength, weaknesses, opportunities, and threats, it is possible to gain great insight into a business and how it should proceed moving forward.
With a SWOT completed, it is possible to dive in and analyze where the business fits in the broader spectrum. SWOT will also incorporate a range of factors, such as marketing, the economic, geopolitical situation, and more. It will also evaluate a business to see how well it is organized, how well its people are trained, the state of their equipment and what level of capacity they are operating at.
While there is no doubt that helping a businessowner create and maintain an advisory council may be a lot of work for a business broker, there are ample potential benefits. As Robbins points out, there can be long lead times between contacting a businessowner and when that businessowner ultimately decides to put their business up for sale.
As Robbins observes, “You want to develop a trusting relationship with a client. This is really huge. You don’t want a client to think of you as a hustler, a salesperson who is just trying to sell.” Instead, a business broker wants a client to look at them as someone that they trust and respect.
Additionally, the process of creating an advisory council and implementing their recommendations can dramatically increase the value and salability, of a given business, which can lead to larger commissions and even referrals. Robbins points out, “I’ve received more new clients from past clients and advisory council members than I can shake a stick at.”
The bottom line is that an advisory council can help everyone involved. Advisors have an additional revenue stream, business owners are given new insights and advice that can transform their business, and you can firmly establish your trustworthiness and long-term value to clients.
