If you were going to attempt your first sky dive, I have no doubt you would be going with someone who has proven experience; plenty of jumps under their belt, qualified, a good safety record and great referees or social proof. I think this would be the same approach, for most of us anyway, when thinking about undertaking anything in life with significant risk…so why is it that so many people utilise sub par or inexperienced advisers or no advice at all when it comes to their business and investments. Do they not consider these to be risky? I would consider these to be extremely risky as so much of your and your family’s success is riding on them.
So if we can agree that these assets or ventures are quite risky and very important then why do business owners and investors not seek out the best advice, the proven advisers, the specialists in a particular field with the best social proof? I don’t know the answer to this but I do know that getting it wrong can and will have significant consequences. Why risk it?
When you are looking to invest and you are selecting a financial planner or stockbroker, do you ask to see their personal balance sheet? Why not? If you are allowing someone to invest your hard earned, don’t you want to ensure that they are actually proven and have created wealth for themselves or are you happy to invest so much in someone that appears to know the theory or talks the talk?
Your accountant may be pretty good with preparing your financial statements and the tax side of things but does that mean they know how to coach you in your business? Are they making proactive suggestions on ways to improve your business or do you only hear from them once or twice a year when you book a meeting! Doesn’t make much sense does it?
Would you, do you or DID YOU (??) use the same lawyer for your business sale, one of the biggest events of your life, as you do for purchasing a house simply because they said ‘they can handle it’? Can they handle it? Did you check?
The above are just a few examples but we could go on. Reality is your business and your investments are risky because there is so much at stake. It is important that you get it right and therefore it is important that you complete the relevant due diligence and select the right team to help you. Just because you have been with the same adviser for a long time or they are a family friend or you are one of their biggest clients, whatever the reason is irrelevant if they are not the best possible option for what you need. It will cost you.
When you think about your business or your big investments think about jumping out of the plane and leave nothing to chance or ‘it will be right’! If you have not considered this for your own situation I suggest you do as successful and high performing businesses and investments generally have a common trait…they have a high performing and experienced team around them. Why risk it? Who is on your team? Are you playing ‘A’ Grade? You should be.