No business is too small to benefit from having an Advisory Board. The well managed and facilitated Advisory Board is such a powerful management tool that no small business should be without one.
Think about the last time you met with other experienced and knowledgeable business people and had an open discussion, sharing your ideas and concerns. An Advisory Board is a formal version of this process.
However, unlike a one-time or casual event, your Advisory Board is composed of people with a genuine interest in your business and a desire to see it do well. As an entrepreneur and business owner, think of an Advisory Board as a ‘management think tank’. Your Advisory Board members will serve as a sounding board, a source of ideas and expertise - and give you honest advice.
Let’s have a look at some advantages of having a Small Business Advisory Board. Having a Small Business Advisory Board can:
1) Provide missing expertise and challenge the business owner’s thinking.
While small business owners are notorious for having to "wear many hats", the truth is that not all of them will fit well. Everyone has their own strengths and limitations and very few of us are good at many different things. And then there's the fact that there are many fields of knowledge that can't be mastered without years of study.
Entrepreneurs are also notorious for their optimistic philosophies towards their business, however, the right Advisory Board can challenge the business owner to think clearly and objectively. And, then there's the fact that there are many fields of knowledge that can't be mastered without years of study.
By judiciously selecting people to serve on your board, you can fill in the gaps of your knowledge.
2) Spurs innovation for creative ideas.
Individual board members can provide creative ideas and alternative approaches for problem situations or new business opportunities, leading to solutions. 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. So most of us have an inborn resistance to innovation.
But having an Advisory Board, puts new eyes on your business operations - eyes that will more than likely see new ways of doing things and provide the new ideas you need to hear to encourage you to change things up and start doing things differently.
3) Provide checks and balances to the entrepreneur’s enthusiasm.
Of course you're enthusiastic about your latest idea for a marketing campaign or a new product or a plan to grow your business. It's your idea after all! And you wouldn't be bothering to present a bad or stupid idea to your Board.
But an idea doesn't have to be bad or stupid to have flaws and board members, who don't have the same ownership of the idea that you have, will be able to see them more clearly than you can and help you think it through - and perhaps come up with ways to get around those flaws. Sometimes hearing other points of view can steer an owner in the direction needed to create future growth.
4) Deliver valuable network of contacts, new potential customers, business partnerships, or opportunities for cross promotion the business owner wouldn't otherwise make.
It's not just their own expertise that your new Advisory Board members will bring to the table. Board members will come with their own circles of contacts, contacts that may be very valuable for the development of your business or particularly helpful to individual projects. Whether your business needs financing or is looking for information on green building, a wider circle of help is always useful.
At its best, an Advisory Board is like having a whole group of coaches.
5) Provide Support as a Sounding Board and Personal Development
Small business owners understandably know the technical aspects of their businesses, but frequently lack experience in management, communications, or interpersonal relationships. The Advisory board members with a wealth of diversified experience can serve as mentors for a business owner’s or senior manager/s personal development.
An Advisory Board is an especially valuable management resource for small businesses. No single person can know everything, and ad hoc, on the fly advice can be worse than none. An Advisory Board that meets regularly gets to know you and your business and can provide the management expertise you need to avoid shoals of mistakes and set your business on a true course for growth, development and success.
