The help of the trusted business adviser has never been more in demand than it is today. From sorting through the multitude of government financial incentives (think: paycheck protection program, employee retention tax credits and a host of others) and complying with government health mandates, to dealing with unscheduled business interruptions, proposed major tax legislation and ongoing political turmoil — the word change does not begin to cover it. Now layer in the global shift in the economy, supply chain issues, not to mention employee retention concerns layered on top of the major shift to hybrid and at-home work, and it is hard to imagine a more tumultuous time.

A team approach — working side-by-side with private companies and their community of advisers — is critical. It’s the only way to find solutions to so many complex issues. So, the question of the day: Do you have the right team of advisers in place? Many business owners will say, “I think so,” or “I’m comfortable with my team; they know me and they’ve been my advisers for a long time.” But how do you know if your team is really as effective as it could be? How do you build the right team or know you have the right advisers already on your side?

What Makes an Effective Team?

• Everyone understands the ultimate goal.
• Everyone understands the plan to achieve that goal and is committed to it.
• Roles and responsibilities have been clearly communicated and accepted.
• The requisite skills needed to fulfill each role are understood and available.
• There is a system of accountability in place and communicated to those involved.
• Everyone respects and supports one another.
• There is a constant flow of information through good communication.

7 Questions to Focus Your Team

Now apply the points above to you and your business. Start by taking a hard look at your current advisory team by asking yourself these basic questions:

1. Do my accountant, banker, lawyer, insurance agent and investment advisers know and understand my goals?
2. Do they proactively ask me the questions that will ultimately help my business or lead to other opportunities, or do I have to do the asking?
3. Are they familiar with my business strategy, and believe it will take me and the business in the right direction?
4. Do they know what I need from them, and have they agreed to provide it?
5. Do they have the skills and resources necessary to provide what I need today — and what I will need in the future as my business grows?
6. Does our contractual relationship provide a level of accountability on both sides?
7. Do my outside advisers work together on other clients; do they talk to each other and have a good rapport outside of my business needs?

The fully integrated interaction described above is important, because, moving in unison, your advisers can be infinitely more effective. For example, your investment adviser needs to know your anticipated tax brackets to properly evaluate if tax-exempt investments may make sense for you, just as your accountant should know if your attorney is setting up an insurance trust so the proper gift or trust tax returns can be filed.

If the answer to any of the questions is no, it doesn’t necessarily mean you have the wrong team, but it does mean that you have an opportunity to improve the interaction between your business and its advisers — increasing their effectiveness in helping you achieve your goals.

Take a few moments to think about your answers to these seven questions. Be honest with yourself, and if you don’t like what you uncover, make a point to have an open conversation with your external team to work on tangible areas of improvement for the coming year (and hold them accountable for any agreed-upon changes).

If they aren’t open to change, (hard to imagine in the current business environment) you might want to start looking for advisers willing to adapt to an ever changing economic and business environment.

Contact a member of your service team to discuss this topic further.

Cohen & Company is not rendering legal, accounting or other professional advice. Information contained in this post is considered accurate as of the date of publishing. Any action taken based on information in this blog should be taken only after a detailed review of the specific facts, circumstances and current law.