Utilizing an Advisory Board to Guide Your Business
By Mike Semanco, President, Hennessey Capital
The importance of an advisory board to an entrepreneur and business owner is invaluable. Entrepreneurs thrive on developing ideas, products and strategies on their own terms and at their own pace. The “charge ahead”, “get it done” mentality is second nature to this group of individuals. Entrepreneurs come in many shapes and sizes- sole practitioner, division managers or even CEO. Whatever the title or responsibility, surrounding yourself with a group of professionals you can rely on for sound advice and direction will only improve your chances of success and keep you sane.
An advisory board is different than a board of directors or managers, who hold fiduciary responsibilities of the business. Advisory boards can take many forms ranging from formal CEO roundtables and annual retreats to informal gatherings over coffee, lunch, or golf. Having a sounding board to share ideas and challenges help entrepreneurs feel they are not tackling the world alone. You can have a great internal management team or partner but there are times when outside influence is needed. A different perspective from a trusted advisor who has encountered the same issue helps you see the challenge or opportunity in a new light.
Advisory board members can consist of professional advisors (your CPA, attorney, banker or consultant), friends or associates who may or may not own their own business, or even a current staff member. The key is to surround yourself with people who have diverse backgrounds, are willing to challenge the status quo and who you like to be around. Start by selecting two or three contacts you feel could be strategic to your business and can fill the gaps you determine are needed. Meet with them and discuss your plans and ask them of their interest to meet on a regular basis. This could be once a month, quarterly or as needed depending on how critical your needs.
Daily business decisions are not easy so having a group you can turn to for renewed perspectives and friendly banter is refreshing.
