Creating an Advisory Board to Grow Your Business
An Advisory Board is one of the most powerful, yet overlooked, tools for growing a business. Developed properly, your Advisory Board can provide valuable input as well as accountability for your decision making.
And a good Advisory Board can also enable you to evolve personally from a day-to-day manager to a true business leader. So, an Advisory Board is not only good for your business but good for YOU, as well.
3 Steps to Creating an Advisory Board
Like any major business initiative, creating an Advisory Board is not something you should rush into. The more time you invest in planning, the more value your Advisory Board will bring to your business. But don’t confuse planning with procrastination; if you start today, you should be able to complete this three-step process in one month.
Here are 3 steps to creating your Advisory Board:
1. Determine the support you need from an Advisory Board. Think about the kind of support you really need and then create a description of Advisory Board tasks. Some items to consider are: new business contacts, competitive and business intelligence, strategic marketing advice, and new product development. As you create this task list, include your expectations of how you expect both individual members as well as the board as a whole to support you in each area.
2. Identify prospects for your Advisory Board. Tell those you trust that you are building an Advisory Board and ask them for their advice. Solicit input from your key customers, suppliers and professional service providers, such as lawyers and accountants; and make note of individuals they recommend. Consider those who have the skills and expertise that would most benefit you and your business. Individuals who have a background in your industry or in the industries of your key customers should be considered, but don’t make the mistake of creating a board that looks just like you. Seek out members from diverse backgrounds who can provide a variety of perspectives.
3. Recruit your Advisory Board. After considering all these aspects, create a short list of potential members, ensuring that you have covered all the needs you described in Step 1, above. Then list your prospects in best-case-scenario order from top to bottom; understand that you are not likely to entice all of them to join, but ask them in that order. As you meet with each individual, detail the support you expect her to provide, the meeting commitment you are asking her to make, and the compensation you are willing to provide.
Don’t let the topic of compensation stymie the development of your Advisory Board. Compensation can range from expense reimbursement, to a small honorarium, to a fee paid per board meeting. And, don’t feel that you have to compensate everyone equally; it is totally appropriate to pay a higher amount to those who provide greater value to you and your business.
If an Advisory Board will benefit your business, what are you waiting for? Get your calendar out and determine when you want to hold your first meeting; September is a great month for new initiatives. Then work backwards to create a plan to make your Advisory Board happen.
Advisor: Mary Cantando
Special Roundtable Breakfast Event:
Mary Cantando, Author & Leading Women Business Growth Expert will facilitate an exclusive meeting at Eaglequest Golf Coyote Creek on March 2, 2010 Tuesday 7:30 am – 10:00 am. Don’t MISS OUT on this rare event! Reservations: http://vancouver.ladiespowerhour.ca
