Many business owners are proud business people who often do not like to admit that they have encountered a situation where they have to ask for advice. Larger businesses use advisers all the time but in smaller firms many owners are often reluctant to spend money. Often if there is a problem, things are going wrong therefore cash flow is tight and to incur extra costs to help analyse the situation and get it resolved could be expensive and the company may not be able to afford it at that time. The business owner then has to decide if it is worthwhile to spend the money to save the business or hope that it will get better by themselves.
Too many business owners try to do things themselves and never ask for help until it is too late. Once you have gone beyond that magical point of no return, it does not matter how much money you throw at the business, you will not be able to bring it back to heath. The obvious question is where is that magical threshold that you keep trying until you get to that point or start early and try to nip the problem at the beginning. Often, the problem is not recognized when it happens, you see a deterioration in the business first and then realize that something went wrong.
Many small business owners do not like to pay advisers. They hire them to do the accounting and do the tax returns but do not realize that their advisers can be business advisers also and can provide advice operating and marketing the business. You get what you pay for, if you only want advisers who do compliance work such as filling out a tax return then that advisor may not be able to provide business advice to the firm because they specialize only in data processing. Accountants such as CA’s, CGA’s, CMA’s, CPA’s can assist the client and even outside consultants can provide assistance to help grow the company, take it to the next level which may be beyond the capabilities of the current owner, find appropriate staff to work in the business or to help restructure the business before it becomes a casualty.