Benefits of a Board of Advisors

Most small and medium size businesses think an Advisory board is just for big companies. Nothing could be further from the truth.

I have owned several businesses during my career. I have made more mistakes than I could count. However, I think the biggest mistake I made was one of omission: not having a Board of Advisors.

The CEO/Owner of a business is the BOSS, the decision maker, the visionary, the person at the top. This person will surround him/herself with a strong management team presumably. As a team, they will create the strategy to take the company forward. However, the company/CEO may need more than that to reach both his/her personal and business goals. This is where a Board of Advisors could be of crucial importance.

Assembling a Board of Advisors is as much an art as well as a science. Each member should have skills/experience in an area of expertise that will be helpful in advising and guiding the CEO. They should also posses access to other outside people that the CEO in the ordinary course could not reach. Board members will have a fresh outlook of the company. Bring new ideas to consider, do not be afraid to criticize the CEO. Be available when the CEO has an issue to discuss.

Members of a Board of Advisors should be paid for their services. Asking them to take a half to a full day of their time for a lunch or dinner is not a way to pay them for their expertise, experience and advice.

I have served on many Boards of Advisors. The CEOs that take this activity seriously will benefit greatly from it.