I was recently asked to sit on an advisory board of a small business going places. An advisory board is a fantastic accountability measure that is instrumental in driving growth. It keeps you strategically focused, provides alternative solutions to problems you may not have considered and the regular meetings ensure you take the time out of your business to work on it. It’s also a subject I often get asked about, so I thought I’d share a little of the process I went through when setting up my own board for the first time.
- We all need help from people who have been there and done that so we can learn from their past experiences. When I set up my advisory board, I started by speaking to my accountant and business coach. I let them know it was the right time for me to take my business to the next level, and that I wanted advice from professionals who had successfully run their own businesses and could impart some helpful knowledge.
- The next step was to find another two participants. I asked two of my clients: someone who my accountant had worked with (he had taken his business to the stage of selling to an ASX listed company) and another contact who sits on a variety of other boards. We discussed remuneration, which is often voluntary, but could also include payment, equity or simply a meal, drinks and a nice Christmas present, and I ensured each member was happy to receive a phone call in between meetings if required.
- If you don’t have access to these types of people, speak with your accountant or business coach, ask your network of contacts and use social media such as LinkedIn and Twitter to help identify thought leaders. People generally want to help those they know, like, trust and respect. Just be careful that the cultural fit is right because you need to ensure you can work together.
- Here is an overview as to the topics covered, which include all areas of business:
- Financials / Cash flow / Projected Outlook / Tax Planning
- Strategic and Business Planning
- Marketing
- Staff and Recruitment
- Governance and Risk Management
- Succession Planning
- Key strategic issues/items – which will change from each meeting
It’s a smart move to set up an advisory board and I encourage every small business to do so.
