Creating Your Advisory Board
A few years ago when I was doing some research on some of the consultants and coaches who have been advising small business leaders, the concept of the small business advisory board appeared in a few innovative companies.
While the concept of an advisory board is nothing new, the use of formal advisory boards among small and medium sized businesses is still quite infrequent.
Many business leaders are reluctant to create an advisory board for several reasons. Chief among the reasons include:
1. Lack of time – Business leaders believe that it would take lots of time and interviews to identify the right advisors for their business.
2. Perceived cost – Its not hard to understand why a small business leader may scoff at dropping a few grand each month on some “expert” that they don’t know, and who knows even less about their business.
3. Skepticism about “experts” – Business owners know what its like in the trenches, and they’ve also heard the old saw – “Those who can do, those who can’t teach.”
The reality though is that it doesn’t have to take a lot of time, the cost can be very reasonable, and some “experts” actually know what they’re talking about.
In my practice I help people to create their advisory board. I work with my clients to learn their business and help them to identify their key business needs. Business advisors can be very inexpensive, so work for no fee and are only reimbursed for their costs. Your business advisory team may be made of retired executives, MBA students and even legal, banking and accounting professionals.
Its important to know what you need and what you bring to the table (see my article on negotiation). If you’re looking to break into government contracting, you’ll need someone with some experience in winning government contracts on your team. You could also benefit from a banker on your team and maybe an attorney.
The make and number of people on the team can vary, but before you put your team in place you’ll have to have a clear understanding with each member of the team regarding roles and expectations.
