Preferred Consumer | Small Business | Managing a Small Business | Management Consultants


Management Consultants

As a small business owner, you will have to deal with outside professionals including bankers, lawyers, tax advisors, and other consultants. Listed below are some tips that should make these interactions easier and less costly:

Bankers

  • Keep him or her informed about good and bad news
  • When asking for credit, ask for more than you need
  • Know that you will probably have to offer your personal assets as collateral for credit
  • Before visiting the banker, make sure you understand your financial standing and be able to explain it- what are your assets? What are your liabilities?
  • Bankers often make visits to businesses that they have or might make loans to. Have your financial statements ready and be prepared to give a tour of the business.

Lawyers

  • Meet in the lawyer’s office- it will cost you more if he or she comes to you
  • Always look for a lawyer based on price and quality- also check references
  • Ask for a total estimate for the work- also ask for the hourly rate he or she charges
  • Do not talk about non-related business if you are being charged for the time
  • Ask questions and make sure you understand the answers
  • Don’t be afraid to ask another lawyer for a second opinion- don’t be afraid to switch lawyers
  • Ask for an itemized bill- you want to know the details of what you are being charged

The following are some instances when you should contact a lawyer:

  • When you form your business
  • When adding partners
  • When you are signing any agreement, including a lease
  • When buying or selling your business
  • Any situation where litigation against your business is a probability
  • When creating stocks in your company
  • Employee issues such as an employee handbook or company ownership

Tax Advisors

Tax advisors can be people who specialize in only tax return preparation or they can be CPA’s that have a wide base of financial knowledge. Tax attorneys are also considered tax advisors and are very useful when there is a legal tax issue that needs to addresses or when you are buying or selling a business.

  • Have a focus in small business tax issues?
  • Does the tax advisor carry liability insurance?
  • Check references
  • Can you communicate in everyday English with the advisor or does he or she talk in jargon that you don’t understand?
  • Are the fees reasonable?