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I could never find a good answer to this question until I asked Louise Broekman who if the founder of The Advisory Board Centre. Her answer is the best I've heard so far. She explains the difference between an advisor (there's multiple types depending on the professionalism and independence here) a consultant, a contractor and a director. We discuss some of the pros and cons of the consulting + contractor dynamic and ways to ensure the best outcome for the business. Essential listening if you are a director, a business owner, or executive with a direct interest in the financial outcomes of the company.