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The rising importance of advisors for businessesnbsp→ Wadhwani Advantage

The rising importance of advisors for businesses

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If you are a business owner who has never really considered consulting an external advisor, there’s no better time than now to do so. The perspective of an advisor can aid businesses in overcoming challenges presented by the current scenario, improving processes, managing supply chain risk and disruption, stabilizing cash flow, and more. In 2020, many businesses even turned to advisors for enhancing HR practices and upping staff morale. Backed by decades of experience, advisors are armed to offer the right guidance at the right time. Here’s how they can help businesses maintain a steady cash flow in today’s turbulent times:

1) Undertake scenario planning

The financing options you could bank on previously, or even last year, may not be available to you for now. Bearing this in mind, consult with an advisor and undertake scenario planning to gain an in-depth understanding of the amount of cash you’re likely to need, and for how long. An advisor’s knowledge of financing options and partners can help you engage with financing partners to ensure a line of credit remains open to you. Alternatively, advisors are well placed to help you identify newer financing options.

2) Think like a CFO, act like a proprietor

Usually, in businesses, it is customer service requirements and operational capabilities that dictate inventory levels, and not financial constraints. But it’s a different scenario today. While supply chain managers handle the operations part to ensure minimal disruption and inventory shortage, an advisor can show you how you can take decisions like a CFO.

3) Relook capital investment plans

At this crucial juncture, previously laid-out plans need to be rethought. An advisor will ask the right questions – are there capital investments that can be put on hold till cash flow stabilizes? Which investments need a second look and potentially, be reconsidered? Advisors are skilled in working with business owners and helping them make tough decisions. Their recommendations could the reason your organization survives, or even thrives, in uncertain times.

4) Encourage early payments

One way to maintain cash flow is to encourage your customers and clients to pay early. A discussion with an advisor can lead to ways to make this happen when the other party may also be facing various issues. If feasible, you could incentivize them by providing discounts within your capacity, or allowing payments in instalments.

5) Negotiate fixed expenses

Advisors are suited to help you revaluate fixed expenses to find avenues to increase savings. Their rich experience will aid you in negotiating with vendors for waivers, discounts, payment deference, and so on.

Advisors may not be on your payroll but they are just as invested in your success as your core team. The Wadhwani Advantage program empowers businesses with capabilities to maximize their growth potential. The program also provides businesses with access to a dedicated advisor who is uniquely positioned to understand the industry and network you operate in.

Take advantage and apply to be a part of the ‘no fees, no equity’ program today:
https://www.surveymonkey.com/r/WAWebsite

(Businesses with INR 25 Cr+ revenue and employee strength ≥ 100, intent to grow 10x and a commitment to learn can apply)

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