We all rely on different professionals for advice for business and personal concerns. When we are looking for advice on a specific decision, here is a really important tip:
Ask for the advice BEFORE you ‘sign up’ on the decision!
It may seem obvious, but it is very worthwhile to remember this little piece of advice.
Examples of when it’s too late:
1) A salesman comes to sell you an innovative new program – It may be agreeing to a contract to purchase some solar panels and obtain revenues from selling the electricity back to the government under a special program. The salesman will want you to sign right away. If you take a signed copy of the agreement to your lawyer and say, “I signed up for this great deal, can you check it out for me?” – it is too late! What if your lawyer says to not sign it?
2) You are approached about a great tax savings investment. The same problem will arise if you commit to the investment before you ask your accountant to make sure everything is legitimate.
It is impossible to advise against the investment if you are already committed to it.
Think it doesn’t happen?
As an advisor to businesses, I have seen these mistakes first hand too many times.
A good salesperson will always try and keep the trusted advisors out of the deal. That’s because they view the advisors as ‘deal busters’! It is common to also be told that the deal has been reviewed by an international accounting firm or a large law firm. This is a guaranteed sign of trouble!
So please just make a note to yourself: When the two above situations present themselves, please don’t sign anything until AFTER you get the advice you need!
Have you ever experienced this? Would you have done things differently? We’d love to know!