Article provided in collaboration with Compass Financial Services
Most owners of tree care companies bring one very valuable asset to the job — they know the tree business. They know how to identify problems, how to trim trees and remove branches, and how to select and operate the tree care equipment that makes them efficient and productive. And they work hard.
However, what about being qualified in other areas — accounting, legal, banking, insurance, marketing, technology — that can play a significant role in determining success? Should you look outside your tree care crew and put together a professional advisory team with the business skills and expertise that you lack? And, if so, how do you select and organize such a team?
Do you need outside advisors?
“An advisory team is a very efficient way for a business owner to receive and evaluate information necessary to make critical decisions,” says Kurtis Pearson, a certified financial planner with Compass Financial Services in Des Moines, Iowa. “Meeting with professionals individually is not all bad because you get some one-on-one time. However, if you can get them all together in a room at one time, it really helps because they can bounce ideas off each other, and advice can be consolidated on the spot.”
Putting a team together
Decide what you want the team to do and then identify the type of expertise you need. Choose members carefully, focusing on people with business skills and experience different from your own tree care business employees. If you are not currently working with professionals that can be part of your advisory team, then you need to interview candidates, notes Pearson. “Look at the process just as you would when hiring a new employee, because that is exactly what you are doing,” he says. “Tell the candidates that you want to get a group of advisors together a couple of times a year, ask if they understand your business and want to participate and see if they are affordable. Be sure to agree on the parameters and cost ahead of time.”
“An advisory team is a very efficient way for a tree care business owner to receive and evaluate information necessary to make critical decisions.”
Do these arrangements work?
Yes, says Pearson, if the owner of the tree care firm has a grasp of business and is open-minded. “The attitude of the owner is key. Just taking the first step of recognizing the need for and organizing an advisory team usually indicates that it will be a successful experience.” Pearson reports that he is part of an advisory team that is working with a business owner on an offer to purchase a company. “Some real good ideas came up during the meeting that could turn out to be worth a lot of money to the seller,” he says. “One of the professionals, the CPA in this case, explained how another company handled a similar situation. That’s one of the advantages of having a team toss around ideas — someone else may have gone through the same type of situation.”