Build a Board of Advisors to Fuel Rapid Growth

Any business gunning for rapid growth eventually faces a unique set of problems. Unlike more mature companies, fast-growing businesses need new strategies, clear vision into the future, connections to external resources, and probably a bunch of extra capital to keep the momentum going. No company can foresee all the issues, but an entrepreneur can be prepared. And one of the best ways to prepare for growth is to build a strong board of advisors.

For a mature business trying to solve typical operational issues, the best board of advisors is made up of all the usual suspects: bankers, lawyers, insurance agents, and the like. But high-growth companies, from startup on, need a board that is more varied in their networks, skills, and outlook.

High-growth advisors should be a mixture of personal mentors and community influencers. The best boards have some or all of the following unusual suspects:

• The Gray Beard: This guy runs a very big business. Think Jack Welch. He’s a few years older than you. He’s been around the block. He may not have built his business from scratch, but he’s shown that he can manage people, operations, sales, and finance. You’ll know him when you see him: He’s gray around the temples and the spark in his eye tells you he still loves the great game of business.
• The Fixer: Formerly a partner at a venture capital fund, this board member knows everyone in town. Think Arianna Huffington. She moves through a networking event like a rock star crowd surfing a stadium. When it comes time for introductions, the Fixer has all the right connections and can get you that meeting that will change your life.
• The Visionary: Every group needs a creative kick in the pants once in a while. The Visionary (think Steve Jobs) simply sees the world a little differently. When you are looking for a way to really impress both customers and financiers, this is the person who should review your presentation.
• The Inside Guy: Somebody has to keep you moving in a straight line toward your goals. The Inside Guy is grounded in facts and can show you connections and consequences that are lurking in the shadows. Think Lee Walker (Michael Dell’s mentor). The Inside Guy can keep the rest of the board focused on helping you. He brings out the best in people and moves ideas toward reality.

These high-powered board members are not hanging out at the local chamber of commerce waiting for you to call. You’ll have to hunt them down. Start with companies you admire: the ones headlining in the local business journal or winning the Fast 50 awards. Take the founders or executives out to lunch. Do the same with your vendors, customers, and competition. Look for people with radically different skills than you have yourself. Explore their track records for trying new things. And in particular, talk to them about your specific challenges for growth.

Be clear that you intend to lean heavily on your board. The value of a board comes from regular contact and specific requests for help. Not every business icon has time to be on your board, so pick those that seem responsive and interested, even if it means compromising on their popularity. An eager B-lister will be more helpful than an aloof A-list candidate. Choose carefully.

Build rapport with your chosen advisors before asking them to join your board. Being on an active board is a bit like getting engaged. If you haven’t been on a few dates, you really don’t know whether the chemistry is right.

Finally, describe what the advisors will get out of the deal. They are more likely to agree when they can get something in return. A well-organized board meeting will give them the chance to meet with your other advisors and have a great meal or take in a ball game. Treat them well and let them share in the wealth that you are building together. Surprisingly, a small gift card and a handwritten thank you can also go a long way.

Once you’ve got a go-to board, you’ll be able to meet the challenges of growth with seasoned advice and expert ideas. Advisors can influence banks and investors, identify partners and customers, and help you set strategy and goals. Build a faster-growing company by first focusing on a more experienced board of advisors.