Building a business can be an exhilarating experience. When you own the shop, you’re boss, chief decision-maker and primary beneficiary of all your hard work. But striking out on your own can be lonely. Sure, there’s nobody telling you what to do, but there’s also nobody to turn to for direction.
If you crave the freedom of owning your own business, but worry about getting along without outside support, assemble a board of advisors.
A board of advisors is a mentoring group made up of former colleagues, respected community members, fellow entrepreneurs, or anyone who can assist with the development and growth of your business. Your advisors advise, obviously, but they also act as a sounding board and referral resource. The board of advisors differs from a board of directors in that it does not have voting shares in your company.
When I first started my marketing firm, Impression Impact, I put together a board of advisors to assist me in developing new business leads and help troubleshoot on proposals and client projects. The board was extremely beneficial. Not only were its members my support network, but in some ways they became my public relations firm. My advisors referred business my way, passed along helpful information and in one case, became my client. The board met four times during my first two years in business and its members were willing to advise me informally whenever a problem arose between meetings.
The keys to creating a successful board of advisors are planning and professionalism. Seek a diverse group for its membership to achieve balance and perspective. You want each member to bring a different skill to the table, so choose people from fields that will complement yours and each other’s. It’s not helpful, for instance, to have five lawyers on your board if you’re an attorney opening a small practice. One may be appropriate, but consider rounding out the membership with a certified public accountant, marketing consultant, even a local physician or dentist.
Ideally, you should have a professional or friendly relationship with your prospective board members. Feel each one out with a phone call, then follow up with a letter spelling out your request. Establish reasonable goals and time commitments. Frequent meetings may be difficult for some members, so aim for quarterly meetings.
Once your board is assembled, ask each member for the most convenient time and location, then strike a compromise everybody can abide by. If you’re asking people to interrupt their work day, it is best to offer light refreshments. It is also a nice gesture to reimburse members for their parking expenses.
Project a consistent and professional image by sending each member a copy of the agenda several days before the meeting. On the day of the meeting, arrive early and prepared. Agenda items for your first meeting may include introductions; the current status of your business and future considerations; customer or client development; information about your industry; future projects or plans; and a review of commitments for the next meeting. After each meeting, mail a copy of the minutes to each participant.
Also give the board a list with the names, addresses, phone numbers and description of each advisor’s business. You might feel less shy about asking people to help you if you consider the networking possibilities you are offering in return. Keep in mind, too, that your advisors’ support will help you weather the rough and rocky times of new business ownership, positioning you to someday return the favor.
Points to remember when assembling a board of advisors:
· Write a wish list
· Set a convenient time and place
· Choose a diverse membership
· Put your request in writing
· Make it mutually beneficial
· Mail an agenda prior to meeting
· Keep detailed minutes of each meeting
· Be accountable
· Make your board accountable!
