Harness The Power of an Advisory Board

No business is too small or too large for the owner to benefit from an advisory board. An advisory board is such a powerful management tool that no business owner should be without one.

To be competitive and profitable, your business needs to be hitting on all cylinders. I have yet to meet a business owner that is an expert in all areas of his business and few with the resources to hire experts and consultants.

Moreover, we have discovered that the answers to all business challenges lie within the business owner. A quality advisory board will help elicit those answers and move a business forward. In fact, a study from the Small Business Administration showed that, between 2001 and 2004, business owners with an advisory board grew 44%, while those without one grew 25%.

Think about the last time that you met with other business people and had an open discussion, sharing your ideas and concerns. An advisory board is a formal version of this process. It’s been said that we can share 90% of our business life with almost anyone. It’s the other 10% where a trusted group of advisors can make an enormous difference. Trust, integrity, and mutual respect are the keys to a valuable advisory board.

Unlike a one-time or casual event, your advisory board should be composed of people with a genuine interest in your business, and you in theirs. A desire to see each board member gain clarity will benefit every member of the board. Your advisory board should serve as a sounding board as well as a source of ideas, expertise, and experience. More than anyone else, your advisory board will be on your side and you on theirs. They are people with no agenda and no axe to grind that will want to contribute to the well being of your business. No single person can know everything and “on the fly” advice can often be worse than no advice at all. An advisory board that meets regularly gets to know you and your business in an intimate way and can help you find new ways of thinking and the ability to face various challenges.

But the best aspect of an advisory board is that you can share ideas, concerns, and challenges in a safe, non-judgmental environment with those who are your peers. You will be able to enlarge the view of your business and improve your mission and strategy. You will have new ideas that you hadn’t considered before and gain the ability to measure if you are on the right path or may need to change direction. The bottom line is that you will get better results in a shorter period of time.

For an advisory board to provide a high level of quality to busy business owners, it must posses 5 basic components:

1. Structure
2. A working agreement among the board members along with a memorandum of understanding and procedure.
3. Confidentiality agreements signed. (Imperative as to not compromise the integrity of the group)
4. Commitment to being active in the group.
5. An agenda (This will keep the meetings from losing direction and lowering the quality)
   
   An advisory board should aim to have every member of the board commit themselves to supporting, sharing experience with, and respecting all of their fellow board members. Well run advisory boards are truly the secret to running a successful business, even when the business is already successful in its own right.
   
   You will see dramatic improvement in your business when you participate in a well run advisory board. Don’t isolate yourself and convince yourself that you know everything and have no defects. When talking with your advisory board, you will often discover something that was hidden within you until that moment.
   
   Let’s face it; the top is a lonely place sometimes. Business owners often have few ways to get support and guidance. Your employees expect you to have all the answers, but where can you turn when you need help with those answers? That’s where an advisory board can make all the difference.
   
   Think of your advisors as mentors who help you become a more effective business leader. They inspire you to greater leadership heights through their own examples and experiences. They help you get through the tough times. They support and encourage. An advisory board can bring out the best in you.

Article submitted by Michael Keiser, Managing Member The Entrepreneur Circle, LLC

It Takes a Village

The old African proverb states, "it takes a village to raise a child". No man, woman, or family is an island onto itself. We venture into a new role, undertake a new project or set out to do what no man has done before. Whatever direction we choose to take, we go there with limited knowledge and experience. “The Village” can take many forms, but the one commonality is we seek the knowledge of those who have come before us.

Entrepreneurs are a proud and independent group; we have a better way and are willing to assume all the risk to deliver our product to the world. Unfortunately, pride and independence can work for us and against us at the same time. An entrepreneur is someone with the courage and passion to take a concept and turn it into a business and is willing to do whatever it takes to achieve their desired outcomes. An entrepreneur can also restrict themselves to solitary confinement and resist the aid of “the village”.

Why do we resist?

• Fear of looking bad
• Need Permission
• Didn’t know the option was available
• Waste of time
• Don’t know who to ask

I am a mother and an entrepreneur. As a new mother I also resisted “the village”. How could I admit that I didn’t have the faintest idea what to do with this child? All I knew for sure was that I loved her, and wanted to take the best care of her. I soon realized that I wasn’t alone; my mom shared how she felt after I was born. “What a relief, I may actually have a shot of raising this child.” From that moment on, I sought out the expertise, took classes, surrounded myself with other parents, and got involved in activities to help support the village. We are now the proud parents of 2 teenagers who openly communicate, take pride in their work at home and school, and set goals for their own future.

Unfortunately, I didn’t realize the same rules applied to entrepreneurship, and it took me a little longer to get acquainted with “the village”. How could I admit that I didn’t have the faintest idea what to do with this business? All I knew for sure was that I had a better way, and wanted to deliver the best product in my industry. Someone recently asked me “why I do what I do, and what makes me good at it?”. I do it because it gives me joy. I am good at it because I eventually got tired of solitary confinement. I got tired of repeatedly making the same mistakes. I grew weary of the paralysis of my fears. I looked at the areas in my life that I was the most successful, and applied them to my business. “The village” has become my greatest resource. The residents of the village are fellow entrepreneurs that have shared with me their experiences, and expertise. In return, I gave them the gift of my experience and expertise. They come in the form of my accountant, my attorney, peers, clients, and most importantly my Mastermind group. My mastermind group has become the governing branch of my village. They have shared with me their experience, supported me when I have fallen, been patient, and never judgmental. They have helped me to align myself with my business, take leadership, and look at the business for what it is and what it can become.

We all posses the power to accomplish what we set out to do, some take the long route and others seek the direct route. When we accept the village we remove the fear, and isolation that can stunt our progress.

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Networking Doesn’t Work?

Would you like to come to my networking event? You are cordially invited to attend my networking event. Come meet and network with 50 – 80 local business people. I bet you receive an invitation such as this or one with a similar message at least once a week (if not more). Networking groups are popping up everywhere. Breakfast groups, lunch groups, dinner meetings, after hour socials, pick a time and there are 5 business events to attend every week. One could say that attending networking events could be a business all its own. So why do I hear over and over that networking is a big waste of time? I will agree with that not all groups/events are created equal. The main reason networking meetings don’t work is because People don’t know how to do it or they are doing it for the wrong reasons.

Networking is the conduit that leads to relationships. Strong relationships are the basis of our business and personal growth. Unfortunately, networking has become a buzz word, so for our purposes let’s call it relationship building. Relationship building, when done properly, is your best source for new business resources and education.

Successful Relationship building Strategies:

Networking and Sales are separate: Always walk into a business event with the understanding that you will never do business with anyone in the room. They aren't your customer.

Prizes are not awarded to the attendee who collects the most business cards: The intention of giving out your business card should serve as a reminder to follow up with that individual. The card is the tool to reconnect with that individual at a later date to learn more about their business, and build the relationship.

Plan your event: Spend some time reconnecting with old friends and new acquaintances. Also, make a point to mingle with the other guests that you haven’t met before. Most important is to come with a purpose. Let your peers know what you are looking to accomplish.
Some examples:
1. My bookkeeper just quit, I am looking for a referral to a bookkeeping service or a new hire.
2. Our company has just launched a new product; I am looking for ways to market this service.
3. My ideal customer has XX characteristics; I am looking for referrals to those individuals.
Please note the examples above are most effective once you have established some level of rapport.

Respect the name tag: Name tags can be a relationship builder or breaker. Name tags are intended to help identify who you are speaking with. Playing the name tag snub game can hurt your relationship building experience. Remember Networking and Sales are different. Initially, give everyone a chance to show you who they are.

Some example questions to ask:
1. Do you participate in any other organizations?
2. What other careers did you have?
3. Where did you grow up?
4. Do you have any hobbies?

Pay attention/ Listen: Many of us will give part of our attention to watching the door, or others in the room making sure we don’t miss anything. Being in the moment is crucial to successful relationship building. Pay attention to the person you are talking to NOW. Perhaps you will find out the ONE you were hoping to meet is standing right in front of you.
Be a resource: “It’s better to give than receive” this is a very trite, but true statement. When building relationships, a great way to build trust is to give something away.
1. Make an introduction
2. Help solve a problem
3. Share an experience
4. Follow up

Here is the tricky part, give without any reciprocal expectations. The word will get out, your integrity as a business owner and peer will speak volumes.

Affiliate yourself with a group that will meet your needs: This is one of the most crucial factors in successful relationship building. Enter the room as a peer ready to give and receive. Referrals are one piece of the relationship building process. Entrench yourself in your business organization. Become a part of the community, take a leadership role.

We have been building relationships since we were children. On the playground it helped us get invited to sit at the lunch table or invited to a game of hopscotch. Later these skills helped us form friendships and find romance. Today these skills help us enhance our careers.

Are You a Cool Kid? Or, Just Trying to be One?

A common frustration of small or micro business owners is that the larger firms won't do business with them. "Why won't they return my calls?" "If they just listen to me, they will know they need my product." The truth is the larger companies are referring to and giving small/micro businesses a chance. They are returning calls and they are listening to them. So why aren't they doing business with you? The answer is simple, you don't want to do business with them. You want their money and they know it.

Something strange happens to the small/micro business owner when they are face to face with their ideal prospect. They suddenly become babbling fools who can't handle the conversation.

Let's take a walk down memory lane, remember when you were in school? There were "the cool kids" and "the not so cool kids". You were either "a cool kid" or trying like hell to become one. The cool kids only accepted or respected those that were cool like they were. Was there a secret handshake that kept most of us out of the group? Yes, it was called confidence. The cool kids didn't strategize all night on how they were going to be accepted by the popular crowd. They just showed up and assumed they were one of them. They spoke to them as if they belonged.

As business owners we do the same things. Smaller companies are so caught up in wanting to be noticed by the bigger companies that when they finally get their chance to participate in "the cool kid group", they blow it!

· Try to impress them
· Send a friend over to talk to them first
· Act like a subordinate to show respect
· Trick them
· Assume they want or need whatever you are selling without asking the appropriate questions.
· Treat the prospect like a checkbook or transaction

These maneuvers didn't work on the playground and they don't in business.

People want to be treated like people and can sense when there is a perceived agenda. It's all about the attitude and level of confidence you display that truly gets you in with "the cool kids". Someone shouldn't buy from you to give you a chance or because you need the money. Show your customer the value in what you do by becoming a resource. Show your knowledge, ask questions to determine the need. I can read a brochure to find out the features and benefits.

Be sincere! One of the worst mistakes is to pretend to engage in activities, hobbies or interests of the person whose attention you wish to gain. If golf is a common interest, share your experience. Don't pretend that you enjoy golf if you have never been on a golf course. You will look foolish and the level of trust will diminish. It's ok to ask about hobbies or interests to find out more. The important thing is to be yourself, and not force the connection. You may discover that there is a common ground, or not.

Listen! It's about the relationship, not the transaction. By building the relationship you will gain their trust. They will tell you if they are going to buy, and when they plan to do so. If they aren't going to buy and they trust you, they may refer you to others they may want to buy.
Enter the conversation without any expectations, if you focus on making the sale, chances are you won't. Even worse, you may discover that a sale was made to someone you never wanted as a customer.

This is a long winded way of saying "You will gain your greatest results by being yourself." Think about the way you behave in your current relationships (Personal & Business). Why do they like you? Why do they do business with you?

Acting natural and confident is the crucial ingredient to creating long lasting business relationships with the customers you are interested in working with. Relationships/trust can't be rushed or forced, but can be nurtured and developed.