As a small business owner, it can sometimes feel like it's you alone against the world. The weight of every decision, every fire to put out, every opportunity to capitalize on - it all rests squarely on your shoulders. But what if it didn't have to be that way? What if you could have a team of experts standing alongside you, ready to face whatever challenges life and business threw in your path?
Well, you can build that team of experts, and you can do it without spending all of your money on payroll. How? By creating an advisory board for your business.
What is an Advisory Board?
An advisory board is essentially a group of knowledgeable professionals who have agreed to provide you with advice and guidance on running your business. This can be an official arrangement with signed advisory agreements, scheduled meetings, and clearly defined expectations. Or it can be a more informal network of contacts that you know you can turn to when you need a second opinion or some experienced insight.
Who Should You Have on Your Advisory Board?
The first step is making a list of the biggest challenges and areas of need in your business. Are you struggling with marketing and building an online presence? Add a digital marketing expert to your list. Finding it difficult to properly manage cash flow? A financial advisor could be invaluable. Other common areas where advisors can help include operations, sales, technology, legal/compliance, human resources, and strategic planning.
Once you have your list of key areas, start identifying individuals in your network who could fill those advisory roles. Who do you know that has built and grown a successful business similar to yours? Who are the professionals you look up to or would love to be able to bounce ideas off of? Don't be afraid to look outside of your immediate connections as well - cold outreach to respected leaders in your industry could pay huge dividends.
How Do You Form an Advisory Board?
There are two main paths for putting together your advisory board. For an official board, you'll want to create a charter that outlines the purpose, rules, compensation structure and time commitments. You may also have advisors sign a simple agreement. Then you'll schedule regular meetings and send materials in advance for discussion.
For a more informal advisory network, it's simply a matter of starting conversations. Reach out to potential advisors one-on-one, explain that you're building an advisory team for your business, and ask if they'd be willing to provide advice and feedback when called upon.
How Do You Use Your Advisory Board?
The key value from an advisory board often comes when you're facing key decisions or challenges in your business. Don't be afraid to go to them reactively for advice and fresh perspectives. But you can also use them proactively by running major strategic initiatives or growth plans by them before pulling the trigger.
Be sure to provide advisors with enough context about your business, vision, goals, and current challenges through regular updates. And while board meetings can be valuable for getting everyone's input at once, don't underestimate the power of picking up the phone and tapping one advisor's specific skill set when needed.
Facing Challenges with Your Advisory Board
Like anything, there may be some challenges and friction points in managing an advisory board:
- Lack of engagement - Advisors are often extremely busy and successful people. To combat lack of participation, be very clear and concise when presenting topics and asking questions. Give them only the most pertinent information they need to provide useful advice.
- Conflicts between advisors - Remember that advisors are there to share their perspectives, but you make the final decisions. If conflicting viewpoints cause tension, remind all parties that you appreciate them but disagreement isn't helpful. Don't be afraid to mediate if needed.
- Need for change - You may find yourself outgrowing some advisors or wanting to inject new voices and experiences into your board. It's okay to politely cycle some advisors out while adding new ones over time.
- The right advisory board can be an invaluable resource for growing your business. It provides you with a wealth of knowledge and experience, a sounding board for your ideas, and an amplification of your own skills and capabilities - without the overhead of bringing all of those people onto your payroll full-time. So start cultivating your advisory board today and turn it into a secret weapon for your success.
