Build a circle of advisors who tell you what you need to hear.
The people closest to a business are often the least able to challenge its owner, which is why the strongest advisory networks include trusted voices from outside the company. As a commercial banker at First American Bank, I see the value of involving those advisors early in major business decisions. Their perspectives can help an owner question assumptions, identify risks, and consider alternatives before making a commitment.
A business advisory network brings together people inside and outside the company to help an owner evaluate options and make informed decisions.
The Inner Circle Rarely Disagrees
Picture the network as an onion. At the core are the partners, key managers, and family members who know the business best and depend on it most. Speaking candidly can be harder for them because they have more at stake in the relationship and the business.
Hal Gregersen of MIT, writing in Harvard Business Review, interviewed about 200 executives and found nearly all recognized that people inside a company rarely tell the boss he or she is wrong.
"The best advisors don't simply confirm what clients want to hear. They help identify risks, challenge assumptions, and address issues before they become problems."
- Jake Doman, Principal, Axion RMS
The Middle Ring Sees What You Cannot
Next come the professionals you hire. Say a manufacturer is weighing a large order that needs new equipment and three new hires. The CPA studies how the purchase affects the tax return, and the attorney reads the customer contract, while the benefits advisor prices the hires into the health plan.
A good commercial banker helps understand how the decision could affect liquidity, working capital, debt capacity, and the company’s ability to respond when the next opportunity comes along. Sometimes the most valuable thing a banker can say is, “You can finance this, but should you?” Access to capital and a sound business decision are not always the same thing. A trusted banker should be willing to discuss both.
No single advisor sees the whole decision. The real value comes when those perspectives meet: a contract term may change the financing need, a financing structure may affect cash flow, or a hiring plan may change the economics of the opportunity. Yet many owners never put their advisors in the same conversation.
Build the Outer Ring on Purpose
Beyond your professional advisors are your peers, including fellow owners from trade associations and roundtable groups who have faced the same decision. They have no stake in your payroll and little reason to flatter you.
Chief executives lean on outside voices, as well. A 2025 Stanford and Hoover Institution survey of 90 current and former CEOs found that more than 80% keep informal advisors, and 91% of them rate the advice very or extremely helpful.
The next time you begin strategic planning or consider a major business decision, try these three steps:
- Map your circle. List who sits in each ring and who has never told you no.
- Name a dissenter. Ask one advisor to challenge your plan, and make clear you want an honest assessment.
- Share the plan early. Ask each advisor, "What has to be true for this to work?"
The purpose of a strong advisory network is not to add more voices to every decision. It is to make sure the right voices are heard before an important decision becomes difficult or expensive to change.
At First American Bank, we believe a commercial banking relationship should start well before a financing request. A good commercial banker understands where the business is going, asks questions that test the assumptions behind major decisions, and helps the owner consider how those choices could affect cash flow and financial flexibility. Sometimes the most useful conversation happens before any money is borrowed.
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