GROUP PURCHASING OF PROFESSIONAL SERVICES

Anyone who is involved in a ... business has probably been faced with at least one of the following questions: When would it be a good time for me to incorporate my business? How can I decide which of the many kinds of insurances are needed for my business without exposing myself to strong sales pitches from insurance agents? Am I using all business tax deductions to my advantage? What techniques are available to me, as the owner of a ... business, to reduce my taxes legally? What kinds of retirement plans are available to me as a sole proprietor, and how can each one help me? What would it involve if I decided to add an employee to my operations? What are the characteristics of the various computerized recordkeeping systems from which I can choose?

To answer these questions, we tend to take the least expensive or most obvious route. Often, we will start by asking family and friends. Sometimes the advice we get is helpful; sometimes it is wrong. Everyone seems to have their own opinion or understanding of these issues, so it can be difficult to sort through it all to find the real facts. We may live in an area where small business assistance is available through an SBA-funded advisory service like the Small Business Development Center or SCORE (Service Corps of Retired Executives).

We may turn to books and IRS publications. The information here is usually right, but the problem lies in understanding the information and applying it to our specific situations. It is important to know exactly which rules pertain to your business in particular.

When things get complicated, it is often a last resort is to make an appointment with a professional like a lawyer, accountant, business or insurance consultant. The information we can get from them is usually accurate, complete and customized to our own specific situation. Why, then, do we resist turning to the professionals to answer our questions? Although we my feel a bit shy about asking what may be simple questions of a "pro", the biggest excuse we usually have is money. We feel we can't afford to seek the high-powered advice of the professionals that big businesses use. But you don’t have to be big business to get professional advice.

A Creative Way To Get Low-Cost Answers!

Take a cooperative approach. Find one or two others in ... business who have questions in a similar vein. Then, together, hire a professional for one or two hours to answer all of your questions.

Most professionals charge an hourly fee. It could range from $75 to $150. Many professionals want to help the owners of small businesses, but can’t figure out how to do it without volunteering to work for free. Some professionals offer workshops, but are just taking shot in the dark when picking a topic, date and location. Some are not comfortable speaking in front of a group. Most, however, are very comfortable at a conference table or in their office and would be happy to meet with several people who have similar questions.

While each of you may have different questions, there will likely be a benefit to each of you in hearing the answers to each question. You may not have come across that particular situation yet, but when you do, you will be familiar with it. Do your homework ahead of time to formulate your questions in a succinct manner with a simplified fact scenario. This preparation is also helpful if you feel hesitant about disclosing details of your personal and business financial situation in front of others. You can at least start the discussion with a fictitious scenario that would illustrate your particular problem.

This will also give you the opportunity to check out the professional’s approach and style. Pay attention, so you can later evaluate. This experience and evaluation will help you decide if you want to involve them in some larger or more specific issue in the future. The best part of this cooperative venture is that each of you will be able to get the help you need for only $25 to $50 an hour.

Be Prepared -- Choose the Right Professional

Make a list of the questions you have about running your business. Note your weak areas or where you could use some guidance if you don’t have specific questions. Then, invite a few of your compatriots to do the same. Go over your lists together and see if your combined needs point to a specific area such as contracts, collections, employment, taxes, recordkeeping, pricing, marketing, inventory or insurance. Then, ask around for referrals to professionals who are experts in that area.