6 Advantages of Having a Small Business Advisory Board
Business is good, but of course, it can always be better. You’re doing all the right things. Marketing to target groups. Checking the competition. Analyzing advertising effectiveness.
So, what else can a small business owner do to fast-track growth? Consider forming a board of advisors.
A board does not have to be intimidating to a business owner nor should a board be seen as a roadblock to success. In fact, the opposite is true. A committed board can be an accelerant for the business and provide strengths to counteract any weaknesses an owner might have. Consider these advantages:
- Individual strengths–An ideal board will consist of members who have wide-ranging skills and experiences. This knowledge base diversity can be leveraged in many different areas of a small business to provide guidance. A six-member board, for example, will have years of combined experiences dealing with all types of relevant business situations and solutions. When the right mix of board members are selected, they can provide specific skills that a business owner and management team may be lacking.
- Challenging thinking–Small business owners are notorious for their optimistic philosophies toward their businesses. While this is certainly a trait that keeps an owner motivated, the right advisory board can challenge the owner to think clearly and objectively. This helps avoid an overly optimistic or “tunnel vision” approach regarding the business.
- Creative ideas–Individual board members can provide creative ideas and alternative approaches for problem situations or new business opportunities. When owners are overwhelmed just trying to operate their businesses day in and day out, they often lack the time or experiences to see beyond their daily routines. Board members can bring a new perspective regarding untapped opportunities and innovative solutions that can propel a small business to a higher level of profitability.
- Networking–Networking is valuable for any business. Board members can use their connections for possible funding sources, finding strategic partners, knowing vendors, or connecting owners with subject matter experts. Leveraging the connections of board members can increase the visibility of a small business to other members of a community.
- Sounding board–Sometimes a business owner does not have a specific problem or situation that needs to be addressed but just needs a sounding board of “think tank partners” to kick around the pros and cons of doing something “this way or that way.” Sometimes hearing other points of view can steer an owner in the direction needed to create future growth.
- Personal development–Small business owners understandably know the technical aspects of their businesses, but frequently lack experience in management, communications, or interpersonal relationships. Advisory board members with a wealth of diversified experience can serve as mentors for a business owner’s personal development.
Small business owners are ego driven to a certain extent. They either started or purchased their businesses and usually run their businesses “my way,” so an owner must have an open mind if contemplating forming an advisory board. If an owner can’t accept constructive advice and new ideas, then there will be no positive outcome to form a board.
On the other hand, when collective efforts of a board help the owner articulate a vision and strategic plan for the future, solid ideas and strategies can lead to increased growth.
Board members can help fill gaps that frequently exist for small business owners. These advisors, who have perhaps taken their own businesses from startup to maturity, can provide proven, structured processes to help owners avoid pitfalls that are typically encountered on the road to success. If an advisory board is selected wisely, it can help lead a small business to lasting success.
