An outside view can help a business grow inside. That statement certainly comes close to the definition of a paradox. That’s because even the most independent, self-made small business owner/manager should seek an outsider’s point of view.
Running a small business brings with it rewards and challenges. Not enough money, competing businesses, and a marketplace which never remains stagnant are only a few of the obstacles every small business faces. Establishing an outside advisory board is one strategy that small businesses fail to utilize. Many times, an advisory board helps small business owners/managers deal with the trials and tribulations of running a business.
A group of experienced business pros usually comprise an outside advisory board. These experts help with strategic planning and coaching the business owners and managers. Unlike a board of directors, an advisory board is an informal group which does not have any authority nor legal responsibilities. Because of its versatility, small business owners/managers can have an advisory board concentrate on a specific need or issue.
Strategic Direction and Planning
One strong point for an advisory board is its ability to provide strategic direction and planning. Members of an advisory board should be skilled in finance, marketing, operations, or detailed familiarity in the small business’ specific industry. An advisory board’s expertise allows them to fairly evaluate the business and provide potential business growth possibilities.
For instance, an advisory board might generate for the business a long-term outlook and deliberate blueprint. The advisory board can assist the small business owner/manager rank goals, objectives, track market movements, and assess potential dangers. Most small business owners/managers are usually inundated from their day-to-day operations. Therefore, with the help of an advisory board, the owners/managers can think “big picture” as it pertains to the business.
Entrance to Knowledge
Because of the nature of a small business, owners/managers need to deal with a variety of business matters ranging from reading financial statements to addressing customer service. Therefore, it is almost impossible for a small business owner/manager to be an expert in every field. However, an advisory board can help fill the gaps where the owner/manager may not be as proficient. As a result, an advisory board’s cumulative knowledge can assist the small business overcome those multifaceted challenges and financially benefit from any developing tendencies.
Growing Contacts and Associates
A small business can benefit from the members of the advisory board’s many professional contacts and associates. Through these contacts, the small business may end up with new customers, contractors, or investors. A new name and image in the community could be one benefit from these networking opportunities. At the same time, because of their various contacts and associates, advisory board members could open the door for a small business to chances that may not have been available to the business previously.
Coaching and Assistance
An advisory board provides coaching and assistance for a small business owner/manager. The small business owner/manager can “bounce ideas” off the advisory board seeking their perspective. Because of their various backgrounds and business expertise, advisory board members can offer insight on how to avoid some of the more common business mistakes. Because of an advisory board’s overall coaching and assistance, a small business owner/manager may feel more comfortable tackling the issues of owning and operating a small business.
Boost the Decision-Making Choice
Making a decision is one way to increase the stress level of a small business owner/manager. This is an area where an advisory board can help reduce that owner/manager’s anxiety and pressure. Advisory boards can provide various choices and possibilities which can clear the way to an easier decision-making choice for the small business owner/manager. Advisory board members can ask specific questions, offer helpful feedback and provide possible solutions to help in the decision-making process.
Increasing and Overcoming Challenges
Overcoming challenges is an everyday occurrence for a small business owner/manager. Those obstacles include managing bigger demand, hiring and keeping good employees, and maintaining top notch customer satisfaction. With the help of an advisory board these obstacles may not be so overwhelming. With their wisdom, advisory board members can help the business deal with its operational proficiency, organizational framework, and resource distribution.
High Value Support
Hiring consultants or other full-time C-suite executives can cost a substantial amount of money. Meanwhile, an advisory board can provide skillful help and information from little to no-cost to the small business. An advisory board’s value far outweighs any extra expenses a small business owner/manager might need to spend. What an advisory board brings to a business is truly a boost to its development and accomplishments.
Develop an Active Advisory Board
Ready to organize an advisory board? Here are a few pointers to consider in building your “sounding board:”
- Recognize your Specific Business Needs.
- Select the Right People.
- Outline the Board’s Obligations and Opportunities.
- Conduct Open Dialogue.
- Evaluate Outcomes Constantly.
Conclusion
Any small business looking to grow and flourish should consider an advisory board. An outside view can help a business grow inside. Because of its wealth of experience, an advisory board can assist a small business owner/manager overcome obstacles, cash in on potential money-making initiatives, and accomplish major objectives.
Organizing an advisory board can be a very smart decision. However, an effective advisory board doesn’t happen on its own. It’s critical for a small business owner/manager to carefully outline and develop its specific goals and objectives. In the long run, the rewards from developing an advisory board can be both beneficial and valuable. So, for all you small business owners/managers, now’s the time to act!
