Humans are helpful creatures. We like to offer advice and help our fellow travellers on their way. Perhaps that’s why we offer so much advice.
Business advice can come from all angles: mentors, parents, teachers, clients, vendors, bloggers, and colleagues. How do you know which advice is worthwhile and which could lead to trouble? How can you avoid following bad business advice?
1. Be Wary of Advice that Follows a Rigid Program
You may receive advice that follows a rigid application of a certain business model or other curriculum. This kind of advice often comes from class instructors or authors of business books. Their advice might have some value, but it’s important to remember that every business is different, and few (if any) businesses fit into a one-size-fits-all program. Customised business advice is much more helpful but can be harder to find.
2. Consider the Motivation Behind the Advice
Sometimes sales pitches are disguised in the clothing of advice, and the way to avoid falling for this ploy is to look for the motives of the person offering the advice.
For example, if you’re approached by someone who wants to be your mentor and is encouraging you to file patents to protect your ideas, it’s important to know if this would-be mentor is a patent attorney who is trying to drum up business. In this case it might be a great idea to file patents, but this idea should come from you, and then you should shop around for a patent attorney yourself.
3. Research the Experience of the Advice Giver
Does the advice giver have substantial entrepreneurial experience? If not, be wary about taking their advice. There are lots of people who have heard about starting and running a business, but there aren’t as many who have actually done it themselves. Ask questions of advice givers to find out how much experience they have with business and how applicable that experience is to your own situation.
4. Be Careful About Cross-Industry Advice
Differences in government regulations, marketing, resource availability and other factors can make cross-industry advice irrelevant. General advice, such as how to hire good employees, can be applicable in many different industries. Other advice, such as how to structure your taxes, might vary widely from industry to industry.
5. The Advice Makes You Uncomfortable
If you receive advice that makes you feel uncomfortable or would send you down a different road if you heeded it, be very cautious. Bad business advice, even if it’s coming from your dad or a trusted friend, can change the course of your success and destroy a good track record. If you feel uncomfortable with the advice, try to find out why. Substantiate your decisions with data whenever possible, and move forward when you feel confident and comfortable.
When it comes to business advice, it’s nice to talk with someone who is experienced, objective, and can offer industry-specific help. Feel free to contact us at Altus Financial for third-party, skilled advice. We’re here to help.
For insight into the current state of your business' health, try our Healthy Business App by clicking below:
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