Quite often small business owners find themselves performing multiple tasks and making complicated decisions on their own. Some spread themselves too thin trying to manage it all themselves, declining assistance or ignoring the advice of others. But recognizing your strengths and weaknesses, identifying where you need support and accepting it, is the mark of a good leader.
As your company grows and business becomes more complex, there will be times when you want to bounce ideas off someone with experience and insight; to seek counsel and perspective from someone who doesn’t work for you or even in your field. An advisory board is the ideal solution. It is not a board of directors. Members do not vote on issues or have authority to hire and fire. Their value is measured in the sound business advice they offer.
Expert advice
I founded PackShip USA in 1998, and one year later I launched Jarrett Logistics Systems. After 12 years of establishing the businesses, I found myself wishing I had a sounding board to discuss various issues and test out my plans and theories.
I briefly considered joining a CEO group, but wanted to be able to talk freely about my business in a confidential forum. I sought the advice of a business consultant who listened to my needs and recommended an advisory board.
My consultant grilled me on my business — core competencies, business plan, short- and long-term goals, mission statement, top competitors, etc. He took my needs, my personality and my strengths and weaknesses into consideration then furnished me with the bios of several excellent candidates and gave me his recommendation on who might be best suited for the board. I can say without hesitation they’ve been outstanding and a tremendous asset to my business.
Assembling the board
The board serves as a focus group for new marketing and technical endeavors; provides networking opportunities, sales and employment leads; serves as mentors to the JLS executives; and offers strategic thinking, expert advice and credibility with their sterling business reputations.
To set up your own advisory board:
- Determine its size. A good number is three to four. That will give you candidates from varied fields of business.
- Reward appropriately. They are not in it for the money, but show your gratitude for their time and counsel with compensation befitting their stature.
- Prepare for your meetings and organize your materials. Create an agenda and stick to it. Provide the previous meeting’s minutes in advance and supply a packet containing the documents and materials needed.
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Provide a professional environment and keep the momentum going. “Robert’s Rules of Order” is a great source for the proper protocol and will ensure that the meeting has a formality that keeps it structured, efficient and a productive use of everyone’s time.
Michael Jarrett is founder and president of Jarrett Logistics Systems and PackShip USA. Both of Jarrett’s companies have won numerous awards, including the Weatherhead 100, Cascade Capital Growth Award, Inc. 500/5000, The Entrepreneurial Edge Award and NEO Success Award.
