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Business Advisory Services

Written by Lisa Utari on 08/08/2024
The author’s views are entirely their own and may not always reflect the views of Putranto Alliance.

Introduction

Business Advisory Service is a professional service offered by expert advisors to help businesses improve their operations. Companies can gain numerous advantages by hiring a business advisor, as these professionals provide a wide range of services. This article aims to explain how business advisory services can improve business performance.

Definition

Business Advisory Service is a professional service provided by expert advisors to clients, encompassing business advice, identification of business potential, development of business strategies, and guidance in overcoming problems to ensure effective business operations.

Business advisors possess significant experience and knowledge in various business aspects, offering quality services. Trustworthy business advisory services are crucial to the success of any organization.

The typical tasks performed by business advisors include:

Research & Analysis: Conducting extensive research to gather information about the company, followed by SWOT analysis to understand the client’s situation, goals, risk tolerance, and preferences.
Provide Advice and Guidance: Leveraging analysis results to offer personalized recommendations and advice, including financial management, financial reporting, business strategy, and commercial funding.
Help Making Strategic Planning: Assisting with strategic planning, including financial planning, business planning, and succession planning.
Monitor the Business Run and Compliance: Assisting in monitoring business operations, strategy implementation, and compliance.
Evaluate Business Performance: Identifying areas of improvement and optimization to help the company achieve its goals.

The Best Time to Utilize Business Advisory Services

Hiring a business advisor can be costly, so companies may not always opt for this service. However, certain situations necessitate the expertise of business advisors:

Starting and Structuring a New Business: Essential when starting a new business, especially on a large scale, and when planning structural changes like mergers, acquisitions, or restructuring, to ensure proper setup and identify potential risks and opportunities.
Strategic Investment Planning: Advisable when considering investments, as business advisors can help create tailored investment plans and evaluate potential opportunities.
Managing Business Growth: Crucial during rapid growth to optimize opportunities and address challenges, ensuring sustainable development.
Acquisitions and Sales: Necessary for careful consideration and informed decision-making during acquisitions or sales of business units, ensuring strategic alignment and value maximization.
Addressing Persistent Problems and Debt Management: Beneficial when facing ongoing issues despite attempted solutions, as advisors bring fresh perspectives and extensive experience, and useful for analyzing debt ratios, considering new debt, and selecting funding sources.

Benefits of Engaging Business Advisory Services

Engaging business advisory services offers numerous benefits to companies:

Strategic Improvement: Receive tailored expert advice and guidance to align with company goals and create future strategies.
Enhanced Efficiency: Boost productivity with innovative ideas and strategies, leading to increased company profits.
Risk Management: Address current issues, prevent future challenges, and implement strategies to mitigate risks associated with new ventures.
Cost Optimization: Minimize costs and financial losses through effective problem management and receive guidance on informed funding decisions and reliable sources.

The Process of Engaging Business Advisory Services

The process of engaging business advisory services typically involves several key steps:

Initial Consultation: The company meets with the business advisor to discuss its needs, goals, and challenges. This initial meeting helps both parties understand the scope of work and establish a working relationship.
Research & Analysis: The business advisor conducts extensive research and analysis to gather information about the company. This includes a SWOT analysis to identify strengths, weaknesses, opportunities, and threats.
Customized Recommendations: Based on the analysis, the business advisor provides personalized recommendations and advice tailored to the company’s specific needs and goals.
Strategic Planning: The advisor assists in developing strategic plans, including financial planning, business planning, and succession planning, to prepare the company for future growth and challenges.
Implementation Support: The advisor helps the company implement the recommended strategies and plans, ensuring that the company stays on track.
Monitoring and Compliance: The advisor monitors the company’s operations, strategy implementation, and compliance with relevant regulations to ensure ongoing success.
Performance Evaluation: The advisor evaluates the company’s performance, identifying areas for improvement and optimization to help it achieve its goals.

How We can Help

Our business advisory service offers comprehensive solutions tailored to your business needs. We assist in navigating the complexities of the Indonesian business environment and provide a wide range of services, including:

Investment Planning: Helping you develop and implement investment plans to achieve your business goals.
Business Establishment: Assisting with the set-up of new businesses, including legal and regulatory compliance.
Permit Applications: Guiding you through the process of obtaining necessary permits and licenses.
Human Resources Services: Providing HR solutions to manage your workforce effectively.
Tax Reporting and Compliance: Assisting with tax reporting, accounting, and bookkeeping to ensure compliance with tax regulations.
Advisory Services for Doing Business in Indonesia: Providing insights and guidance on the Indonesian market to help you make informed business decisions.

FAQs

What are the differences between a Business Advisor and a Business Analyst?

Focus:
- Business Analysts: Focus on analysis activities such as analyzing a company’s financials, management, or specific systems to provide recommendation materials.
- Business Advisors: Focus on providing advice and guidance to a company to achieve its specific goals. The results of business analysts’ activities can be used as material for business advisors’ work.
Client Interaction:
- Business Analysts: Typically work independently without the client, then present their findings to the client.
- Business Advisors: Work directly and continuously with clients, providing ongoing support and guidance.
Compensation:

- Business Analysts: Usually employed by a company and receive a fixed salary.

- Business Advisors: Often work independently and are paid through commissions, fees, or a combination of both.

Who can hire a business advisor?

Individuals, families, and companies of all sizes, both locally and internationally, can hire business advisors when they need advisory assistance.

How can we find out the legality of business advisory services in Indonesia?

Check if the business advisory service has the appropriate licenses, certifications, and accreditations for the services offered. For example, for financial planning assistance, ensure the advisor holds a Certified Financial Planner (CFP) certificate. For tax consulting needs, verify that the advisor holds a valid tax consultant certificate. These certifications should be issued by reputable institutions such as the National Professional Certification Agency (Badan Nasional Sertifikasi Profesi/BNSP

), the Directorate General of Taxes (Direktorat Jenderal Pajak/DJP), and the Financial Services Authority (Otoritas Jasa Keuangan/OJK).

What are the types of Business Advisory Services commonly found in Indonesia?

The types of Business Advisory Services commonly found in Indonesia are as follows:

Financial Consulting Service: Provides financial advice and guidance, including financial strategy development, investment planning, business establishment, tax planning, insurance planning, and estate planning.

Strategy Consulting Service: Assists companies in formulating and implementing long-term strategic plans.

Management Consulting Service: Helps companies develop techniques for enhancing senior executives’ management of teams, projects, and divisions.

Business Consulting Service: Offers advice about business skills and the business environment.

IT Consulting Service: Helps companies optimize their IT infrastructure, including system changes and the use of new technologies.
HR Advisory Service: Assists companies in managing their human resources effectively and efficiently, providing advice on human resource management and dealing with employee rights violations.

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