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