Advisory Boards

An Advisory Board can be an especially valuable resource for small businesses. No single entrepreneur can know everything, so having an Advisory Board that meets regularly can provide the management expertise you need to avoid potentially costly mistakes. An advisory group serves as a sounding board, a source of ideas and expertise, provides valuable contacts, and most importantly gives you honest feedback and advice about your business.

To set up your own advisory board, look for individuals whose business acumen you admire. Include members with a variety of areas of expertise, both in general business and specific to your industry. Three to five people is sufficient for a small business's board. They will be expected to meet with you periodically to review and discuss your business.

To get the most out of your advisory board meetings you must prepare and run the session as you would any professional meeting.

• Set up meeting dates in advance for the year and stick to them.
• Distribute meeting agendas and any related materials, documents and numbers at least a week prior to meeting.
• Choose a site that is comfortable and free of distractions.
• Have someone there to take notes, document action plans, and then follow up on all agreed upon items.
• The meeting should be structured so that no more than 30% of the allotted time is spent on "blue sky" brainstorming. At least half of the time should be dedicated to setting and reviewing concrete business issues and action plans.
• Be prepared to be completely open and honest with your Advisory Board, sharing both your hopes, successes, failures and fears, and follow it with an action plan.
• Keep your board members informed of your company's activities between meetings.

Remember that your board is acting in an advisory capacity only. They will make no tangible business decisions and any advice given to you will be offered on an advisory basis. The fact that they've agreed to be on your board means they care about your company and its success.