Even before the pandemic, and a business environment unlike any other, advisory boards were having a moment. But what is an advisory board, and is it right for you?
An advisory board is an informal group of professionals who can help you run your business better by giving you advice and feedback, helping you make connections, and in general looking at your operation with a fresh set of eyes and experiences. Some owners utilize an advisory board to help with direct operation of the business, while others use their advisors to keep them informed on various trends that may affect their company. The members of your board are acting as mentors for your business.
Generally, a well-rounded advisory board consists of a legal advisor, accountant, marketer, HR expert, and a financial advisor or banker. Some owners include entrepreneurs from related industries. If you don’t personally know people in these areas, don’t be afraid to ask for introductions to successful leaders in these fields – most will be flattered, and at worst they’ll say no. Many leaders like to share their knowledge with others, and also benefit from the connections and insight you can give them.
Since most advisory boards are informal, members are rarely compensated outside an occasional meal. Therefore, you’ll want to clearly communicate your goals for your advisory board, and let potential members know you don’t expect them to take on an active management role or assume any liability for your company or for the advice they offer. Meetings can be held one-on-one or with the entire group, whatever makes sense to the issues at hand and works well for you and your advisors.
Simply preparing to meet with your advisors can be a useful exercise, giving you clarity as you organize your thoughts about a topic you need to discuss. An experienced advisor can help you avoid mistakes they’ve made and enhance your core competencies. A strong advisor will feel comfortable pushing you outside your comfort zone and challenging your assumptions. It’s useful to have a diverse group since different backgrounds provide different perspectives.
The bottom line is that an advisory board is a great asset to any business owner. You likely have people you turn to for advice already – putting together a “board” forces you to put more thought into who you’d like advising you, and if you’re honest with yourself, will help you strengthen your business in areas where you’re weak. Getting more perspective and connections can help any entrepreneur, no matter their company size, succeed.
Central Indiana Resources
These organizations can help you put together an advisory board of your own.
Central Indiana Small Business Development Center (SBDC)
Central Indiana Women's Business Center
The views, information, or opinions expressed in this article are solely those of the author and do not necessarily represent the views of Citizens State Bank and its affiliates, and Citizens State Bank is not responsible for and does not verify the accuracy of any information contained in this article or items hyperlinked within. This is for informational purposes and is no way intended to provide legal advice.