Convenience

Sources of Management Advice
Financing is not the only area in which small businesses need help. Until World War II, for
example, the business world involved few regulations, few taxes, few records, few big compe-
titors, and no computers. Since then, simplicity has given way to complexity. Today, few
entrepreneurs are equipped with all the business skills they need to survive. Small-business
owners can no longer be their own troubleshooters, lawyers, bookkeepers, financiers, and tax
experts. For these jobs, they rely on professional help. To survive and grow, however, small
businesses also need advice regarding management. This advice is usually available from
four sources: advisory boards, management consultants, the SBA, and networking.
Advisory Boards
All companies, even those that do not legally need boards of direc-
tors, can benefit from the problem-solving abilities of advisory boards. Thus, some small
businesses create boards to provide advice and assistance. For example, an advisory
board might help an entrepreneur determine the best way to finance a plant expansion
or to start exporting products to foreign markets.
Management Consultants
Opinions vary widely about the value of management
consultants—experts who charge fees to help managers solve problems. They often
Chapter 5:
Entrepreneurship and New Venture Management
1 4 5
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specialize in one area, such as international business, small business, or manufacturing.
Thus, they can bring an objective and trained outlook to problems and provide logical
recommendations. They can be quite expensive, however, as some consultants charge
$1,000 or more for a day of assistance.
Like other professionals, management consultants should be chosen with care. They
can be found through major corporations that have used their services and that can
provide references and reports on their work. Not surprisingly, they are most effective
when the client helps (for instance, by providing schedules and written proposals for
the work to be done).