An advisory board can alleviate pressure from CEOs, management teams or founders. They can provide valuable insight and advice to grow your company or deal with challenges that develop along the way. A board can also hold a CEO accountable for decisions, a valuable check to have in place.
And the great part, you don't always have to take their advice.
Jim Bourdon, chief executive of Accounting Management Solutions has a column in the NYT that address a decision his board of advisors helped him make and tips for putting one together that will benefit your operations. Here are some of the main takeaways.
HAVE AN OBJECTIVE The most successful boards are formed with a specific goal in mind.
BE OPEN TO CHALLENGES In addition to making sure that your advisors will not be mere rubber stamps, seek out those who fill knowledge gaps within your company or your own background.
TURN TO A NETWORK Search for advisors by taking inventory of your contacts who possess skills or expertise you lack, eventually settle on a ranked wish list of eight (most experts agree that small-business advisory boards of more than six are not productive).
PUT IT IN WRITING Though advisory boards are more informal than boards of directors, they should still be governed by written agreements. It is vital to consult with your lawyer before forming and working with your board.
PAY FOR THE ADVICE Your board members will not be in it for the money. For many, being a part of a board offers mentoring, networking and social opportunities that make the experience worthwhile. It is still, however, a good idea to compensate them.
After reading the column, I believe as your operation grows and becomes more complex, a board seems to be an intelligent tactic that will only improve your business. When building an initial business strategy or business plan structure, think about it.
And the great part, you don't always have to take their advice.
Jim Bourdon, chief executive of Accounting Management Solutions has a column in the NYT that address a decision his board of advisors helped him make and tips for putting one together that will benefit your operations. Here are some of the main takeaways.
HAVE AN OBJECTIVE The most successful boards are formed with a specific goal in mind.
BE OPEN TO CHALLENGES In addition to making sure that your advisors will not be mere rubber stamps, seek out those who fill knowledge gaps within your company or your own background.
TURN TO A NETWORK Search for advisors by taking inventory of your contacts who possess skills or expertise you lack, eventually settle on a ranked wish list of eight (most experts agree that small-business advisory boards of more than six are not productive).
PUT IT IN WRITING Though advisory boards are more informal than boards of directors, they should still be governed by written agreements. It is vital to consult with your lawyer before forming and working with your board.
PAY FOR THE ADVICE Your board members will not be in it for the money. For many, being a part of a board offers mentoring, networking and social opportunities that make the experience worthwhile. It is still, however, a good idea to compensate them.
After reading the column, I believe as your operation grows and becomes more complex, a board seems to be an intelligent tactic that will only improve your business. When building an initial business strategy or business plan structure, think about it.
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