Who Are the Corner Posts of Your Small Business?

It doesn’t take a new entrepreneur long to learn that they need capable advisors. From the start, they need expert opinions and advice, and people they can trust when bouncing off their ideas about building the business of their dreams. Throughout the start-up phase and then growth of the business, those advisors will inevitably change, however all will need those trusted experts along the way. I’ve found that an entrepreneur must have four buttresses in their small business — their “corner posts.” These integral supports are a CPA, insurance agent, attorney, and banker. And it’s crucial that each learns to understand your industry, or better yet, has experience working within your industry.

When I was starting my business, I reached out to a former co-worker for accounting advice. As I was inexperienced, this CPA took on the role of “mansplaining” everything to me. While he taught me how to take numbers and plug them into line items on a financial statement, he never taught me what a financial statement could tell me or how to read it. Eventually, I realized I needed to move on from being the good little student and not speaking up, and find a CPA who invited my questions and willingly shared all I needed to know.

Be sure to interview at least three potential candidates for each “post” before making your selection. Getting a referral from another business is fine, but remember that every business is different. You have your own personality and your own learning curve. What’s more, you will be schooled by each one along the way, so the chemistry between you and each expert will be fundamental to providing you with kind of the support you need.

Here’s what to look for when interviewing for each of your corner post positions:

1. CPA prospects

-Have they worked with a business of my size?

-Are they approachable and available to answer questions?

-Is an answer to a phone call, email, or quick inquiry billable?

-Are they familiar with your accounting program?

-How many times a year will they touch base with you?

Don’t get caught up in a situation where your CPA only looks at your books at end-of-year. You may get blindsided with a huge tax liability on April 14. They should, at a minimum, be preparing your taxes, including your estimated payments, and touching base with you twice a year.

Unless you’re a CPA yourself, you will have questions and, sometimes, they’ll feel like ignorant questions that you’re embarrassed to ask. But you must ask them! As I learned early on, it’s crucial to be working with someone who respects you and will respond without being judgmental or condescending. They should stay in their lane while watching out for your business. Remember, you built this business, and they work for you.

2. Insurance agent candidates

You will need insurance — workers’ comp, general liability, professional liability, cyber security, and the list goes on. More than likely, you’ll be using more than one insurance agent.

Make sure each takes the time to meet with you yearly to ensure your coverage is up to date and to explain each policy from cover to cover. The more familiar they are with your business, the greater chance your business won’t be left exposed. A good agent will find places you haven’t thought of that need protection.

Be sure to interview more than one agent and compare their suggestions so that you’re not being “oversold” on coverage you don’t need. And put it on your calendar to meet yearly to discuss your changing needs.

3. Potential attorneys

It’s better to have someone in place who has familiarized themselves with you and your business than to have to search for a lawyer when something legal pops up. Find an attorney who is willing to meet with you and understand your industry. You’ll need someone to look over BAAs (Business Associate Agreements), leases, vendor contracts, and much more.

As your business grows you’ll need a copyright/trademark attorney, possibly an M&A (Mergers and Acquisition) attorney, and perhaps others. Find an attorney that will proactively point out services you may need and is willing to refer you to a specialist. Again, know the cost associated with every phone call, email, or text.

4. Banking contenders 

Often entrepreneurs look to their personal bank or credit union as a natural resource. While it may be fine to start with a small local credit union or bank (as often they’re more open to doing business with a startup), know when you’ve outgrown them.

Ask about lines of credit and overdraft protection. Understand all of the fees. As your business grows, you’ll encounter situations where you need to put things in place quickly to run your business — overseas transactions, direct deposit for employees, and so on. Know if your “start-up” bank can handle those or if you need to change to a bank more adept at handling business transactions.

One additional corner post that’s also imperative for your financial peace is a financial advisor. If you’re a sole proprietor, which most of us are, monies are very intertwined. You need someone to look at the health of your business and your personal finances.

My financial advisor has been instrumental in my financial success and the success of the business. She has helped me learn and navigate everything from investments to finding long-term care insurance. She’s looked at the entire picture of my finances, taking into consideration how my business affects my income and vice versa. She’s also been willing to be in contact with my CPA and insurance broker to help me navigate through some of the processes over the years.

I highly recommend finding a financial advisor during your entrepreneurship journey.

It’s worth spending the time to put your corner posts strongly in place. And, when they become weak and begin to wobble, know that it’s necessary to replace them.

Author: Theresa Slater is the President of Empire Interpreting Service, which she founded in 2003. She built her company into a respected, award-winning organization with more than 300 interpreters and an array of customer-centric services. A speaker, author and advisor to new entrepreneurs, Slater’s love for business drives her on her path. Slater’s new book, The Language of Success: An Interpreter’s Entrepreneurial Journey (Business Expert Press, Aug. 30, 2024), is both autobiography and a how-to (or how not-to) guide for entrepreneurs. Learn more at www.empireinterpreting.com.