I don’t golf. That might seem like a strange opening for a blog post titled “Finance Matters”. Who cares whether I care to spend my Saturdays walking around swinging a golf club or not? But, there’s a point to be made.
Too often I see business recommendations being made based solely upon friendships. Admittedly, friends can be a source of business relationships but a far and away better source is to rely on people who have proven themselves in multiple situations. Pulling close friends into your business life is fine, but you’d better be able to fire them if you find they aren’t up to the task. Otherwise, you’ll end up with an advisor or employee who isn’t doing their job and you’ll find yourself powerless to do anything about it. Some time ago an executive told me that his girlfriend asked to work in his company. His response was perfect. He told her, “I don’t hire people I can’t fire”.
When utilizing your personal network for help in your business or tapping into others, make sure you base your decision upon someone’s ability to solve a tough business situation.
- My practice has allowed me to work with countless lawyers. If you ever have a legal issue, I probably know a lawyer who has solved the type of problem you are facing.
- The CPA’s I recommend are those who are best for a particular situation. When selecting a CPA firm, it’s important to get the proper fit. Some firms have industry specialties or work best with a client of a particular size.
- Because of the diversity of my practice, I’ve closed on multiple loan packages this year. I know which bankers can get the job done.
- If you ever find yourself facing a Chapter 11 reorganization (and I hope that you don’t) I know just who to call. I’ve been through this process twice . . . one company is still in business serving customers a dozen years later.
- I don’t get involved in my clients’ personal finances, but I know who they should talk to for financial planning matters and am happy to make a referral.
- A colleague in the mortgage business has helped everyone to whom I have ever referred him and every one of those referrals has called me to thank me afterwards.
- A client is facing a commercial real estate need. Fortunately, I have a relationship with whom I have worked in the past and will serve us well.
- While insurance matters can be very complex, they needn’t be if you have the right broker.
- I recently got a call from someone who had an accounting issue due to a departure on his team. It didn’t merit my involvement but I was able to refer someone who solved the problem.
- While well outside my area of expertise, I know a terrific web strategist.
I could go on but I think I’ve made the point. When you’re facing a business situation that isn’t in your sweet spot, you need to know who to call. And before you make that call, make sure that it’s someone who you know can solve the problem regardless of their handicap on the golf course. Or give me a buzz, I probably know who to call. I consider each of these people friends because they have been instrumental in my success over the years, not because of what they can do on the golf course . . . I don’t golf.
If your business could benefit from fractional CFO services, I would welcome the chance to speak with you. Please give me a call at (314) 863-6637 or send an email to [email protected] The archive of these monthly newsletters is posted at the Resources section of homza.com
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