Why Don't Business Owners Take More Advice?

[PaulSimister]

I am currently writing an article so I would appreciate your thoughts on why many small business owners resist taking business advice.

As someone who sells business advice, I am clearly biased here but some years ago I did a research project on how businesses in financial difficulty could be rescued.

In that research I found a survey which found that 2/3rds of failed companies could have been saved. One third didn't take any advice at all and the others were went to see their bankers/accountants to borrow more money.

This is a bit of a biased sample since you have come to the Small Business Success Forum for ideas but I would be interested to read why you or someone you do resist paying for business advice.

[Rob]

Interesting question. Immediate thoughts:

1. 'I've been in business for 20 years; no one can know my problems better than me.'

2. 'I've been in this industry for 20 years; no one knows the market better than me.'

3. 'I've got enough cash flow problems as it is; why make it worse by paying out money I haven't got.'

4. 'The advice will probably be to spend more, upgrade, downgrade, sidegrade or whatever - all that will cost money I don't have so what's the point.'

5. 'I've got problems to sort out. I don't have time to sit down and talk to someone for hours on end.'

6. 'These consultants will only produce a report of which 90% is what I told them.'

7. 'Anyway, I'm going to speak to Bill next door; he always talks alot and seems to know what's going on. He hasn't got a job or a business so he's had a lot of time on his hands to absorb all sorts of stuff. He'll be good for me and it won't cost me anything!'

Bhaa, humbug ....

[PaulSimister]

Thanks Rob.

As I read your points, I could almost hear the grumpy, harassed, overworked and underpaid business owner saying them.

My inner salesman came out and I immediately went into "objection handing" mode.

1 I agree. Nobody does know your problems and how frustrated you about not solving them better than you. Some may have been a concern for a long time and you will know the pain/cost they have caused over the years because you haven't found a solution.

You can't figure out everything by yourself, so why not leverage the mistakes and success stories of others.

2 I agree. Your customer and knowledge of your competitors is vital but what if we can combine what you know about your industry with what I know about business improvement and what has been proven to work in hundreds of different industry sectors.

3 I agree. Your cash flow problems are exactly why you need to be taking advice because you need to tap into the knowledge of what works better. I realise you can't afford to take risks and that's why I offer a money back guarantee if you are not thrilled with the improvement made in your business.

4 If you talk to some business advisers, consultants and coaches, their advice may well be to spend more money. But not me. I specialise in helping business owners to take more advantage of the profit opportunities in your business using low cost, low risk techniques.

5 You are right. You do have problems and that's exactly why you need to spend a little time to hear an outside, objective assessment of the issue. You have been wrestling with the problem for a long time. Firefighting. Treating the symptoms. Perhaps with my help we can get to the root cause, fix that and save you so much time and frustration in the future.

6. Yes some big, expensive firms of consultants do have a reputation for charging you an arm and a leg to produce a report telling you what you already know. But not me. You know and I know that a report is not the way to get results. Taking positive, intentional, purposeful action, on the problem or the opportunity is the only way to get results. Remember I only get to keep the fee if you believe your business has improved, and often that means seeing it in the numbers.

7. Talking to Bill sounds like a good idea. It is always good to share your troubles and hear what someone else thinks. Tell me how have you found Bill's advice before on these particular problems? Did he help you to find long term solutions? There is an old saying - "if you think good advice is expensive, you should see how much bad advice costs."

My inner salesman is now becalmed and has gone away to crawl under a rock after uttering one last statement.

"If you don't want to change, then anything I say won't make you change so even if I convinced you in the short term to try business coaching, it wouldn't work for you. The desire to improve and take action has to come from you.

Henry Ford had a saying "If you think you can, or you think you can't, you are probably right.

But don't you owe it to yourself and anyone else who depends on your business, to get the most from it and to optimise everything you do. What if there was a possibility that your business could be given a big boost, so you make more money and work less time, and you could try it on a money back basis? Doesn't it at least make sense to give it a try?"

I can see a new web page coming out of this so thanks Rob.

[Raider]

Interesting question. Immediate thoughts:

1. 'I've been in business for 20 years; no one can know my problems better than me.'

2. 'I've been in this industry for 20 years; no one knows the market better than me.'

3. 'I've got enough cash flow problems as it is; why make it worse by paying out money I haven't got.'

4. 'The advice will probably be to spend more, upgrade, downgrade, sidegrade or whatever - all that will cost money I don't have so what's the point.'

5. 'I've got problems to sort out. I don't have time to sit down and talk to someone for hours on end.'

6. 'These consultants will only produce a report of which 90% is what I told them.'

7. 'Anyway, I'm going to speak to Bill next door; he always talks alot and seems to know what's going on. He hasn't got a job or a business so he's had a lot of time on his hands to absorb all sorts of stuff. He'll be good for me and it won't cost me anything!'

Bhaa, humbug ....

Thats the way I used to think when I was running my business 3 years ago, I'm the boss, I know what I'm doing.

Ok yes I did, but I didn't know what my employees knew, I missed out on alot, now I listen to my employees and I've gained alot more from that.

[Dr.Jose Sebastian]

Paul has raised a very valid point particularly in the context of recession. Most small business owners here in Kerala(an Indian State) reduce their problems to four or five like lack of working capital, government policy like tax rates, lack of raw materials, electricity, or inspectors from governmnet. They have pinpointed the problem and they think they have the solutions also. As Rob observed, why to spend money? I think entrepreneurs who have really benefited from business advice should highlight it in their association meetigs. A culture of seeking quality advice and paying for it can be developed over time. Here we should note that all are not willing to adopt Paul's approach. Most consultants have a few jargons and fixed solutions for which you will have to pay a hefty fee. Perhaps governments will have to convince the small business owners of the utility of advice-may be by subsidising such advice to start with!

[Rob]

Part of the problem here is the 'blame anyone else but me' culture. It's always someone else's fault - the government, the tax man, the supplier.

If you don't recognise that you are part of the problem then seeking out advice becomes a solution never explored.

[giftshop]

Thanks for the information that you have posted. Yes, I totally agreed with your issues also.
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