By Pete Hill
(posted 14 Sept 2006)
In last month’s newsletter our quote of the month was ‘Free advice is worth the price”. Although (as much as I wish I could) I can’t take credit for the quote; the more I thought about it the more relevant it became to our everyday work.
Before I expand on this however it would be pertinent to define the difference between ‘advice’ and ‘information’. There are plenty of sources of free and relevant information out there for small to medium enterprises (SME’s) , for example on our own website. Another source is the Chamber of Commerce which runs free workshops and seminars. However, the defining difference between ‘information’ and ‘advice’ in this scenario is context.
Information is only as good as the context in which it is applied. A professional advisor will, to a greater or lesser degree, have access to the same information as any other person out there. The difference is when that information is applied to your individual circumstances and backed up by many years of experience, knowledge, research and professional qualification.
It is very rare that exactly the same advice is relevant to two individuals as qualified advice must consider a myriad of factors.
It never ceases to amaze me, therefore, that we are constantly being asked to consider ‘revolutionary’ ideas that apparently work for someone else, so why not for me?
The common factor of course is that these ‘ideas’ invariably involve tax ‘loopholes’ resulting in considerable increases in tax deductibility of expenses. What is even more incredible is the credence given to these ideas by otherwise sound & responsible business owners.
We call them ‘Barbeque Advisors’, mainly because the common opening to an amazing and innovative concept starts with ‘I was at a barbeque the other day and a mate of mine told me.....’
How we would like to respond is ‘that sounds like a great concept, I’ll get in touch with IRD and ask them to check it out – what was the name of the business?’ However as professionals we don’t have that option. We have to spend both your and our valuable time explaining how things work in the real world.
Professional advice does not come cheap – that is because it is worth exactly what you pay for it. Rather than a cost it is a valuable investment in your business and is backed up by fiduciary responsibility, qualified knowledge and years of experience.
Barbeque Advisors on the other hand are free – and their advice is worth exactly what you pay for it.
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