Question

Explain the importance of a professional support team for new ventures, and how would you suggest...

Explain the importance of a professional support team for new ventures, and how would you suggest the new team (attorneys, accountants, consultants, suppliers, etc.) be formed (who do you acquire first, when, etc.)?

Homework Answers

Answer #1

New ventures when started on a small scale can run by a single owner where he invests capital, uses it for strategies, takes decisions and expands his business. But it is not possible for a person to run the business single-handedly on advanced levels. As the business grows, it faces various challenges, risks and decision dilemmas for which the business owner requires expert input which can be given by professionals of those areas. These can be financial advice, legal advice, marketing advice and other management advice useful for business expansion and growth.

The legal help can be provided by a lawyer who will give advice about any business decision that involves legal ramifications. The regulations a business will have to follow in running the business or making any changes to it will be looked after a legal consultant. The financial advisors will advise over the profitable steps that can be taken in the business and the areas which should be avoided for having a greater risk of loss. They also guide about the tax formalities the business needs to fulfil for not leading to a legal complication. Marketing and management consultants advise on how and where the business should be expanded, changes required in the business strategies and the internal and external management approaches required to be taken for business growth and sustainability.

Acquiring a new team and prioritizing their need in the business depends on various factors such as the business type, external competition, internal capabilities, expansion or change need and growth pace. Accordingly, the business owner will identify the needs of the business for the expertise of professionals and acquire them one by one. He can also choose to have external consultants for advice and decision making rather than hiring full-time expertise.

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