Owning and running a business can be a solitary journey, where the challenges of success often feel insurmountable.
You are the clear leader and visionary behind your business however no-one has experienced every situation or has the skills to manage every challenge. One can be assured that the unexpected will happen. Whether you are out of your depth with a new challenge or continuing to face the same issues again and again, who can you turn to for confidential guidance? Family and friends can be a great support network however do they have the business knowledge and experience to help? Nor can you engage employees in your toughest, high-level strategic and confidential decisions. You may be a part of a local business group, which can be extremely helpful, however, does that provide the depth of engagement you want or would feel comfortable with?
For an entrepreneurial business that has grown steadily but has now reached its next stage, help from outside your regular circles may be needed to formulate a strategic and practical approach to what comes next. You may be ready to step out of a day-to-day operational role or simply wish to gain perspective on what you think is needed to get to the next level of success. Having someone with whom you can have a confidential conversation, has your trust and is not influenced by a personal agenda would be ideal. A small group of advisors with relevant and varied business experience, somewhat different than your own could be a valuable resource. The support can be ongoing as this group of advisors get to know your business and become a go-to resource on a regular basis or can be called upon when you need help. Success for outside advisors hinges on whether they can provide you with useful recommendations which lead you to successful problem solving. Their success is measured by your track record in implementing changes that help realize the potential of the business — whether to pass along the business to next generation family members, or to position the business for a future sale. You can use the resource as much as you want and when you need it, without a long-term commitment.
If you are looking for help or advice with regard to high level thinking and strategy in your business, and the options seem limited, consider a Board of Advisors (BOA). Customized for your needs and comprised of senior-level people that bring you their experience and want to help you and your company realize your potential.
So how does a Board of Advisors work?
There are of course introductory meetings with potential BOA members to get to know them. It is key that you feel a rapport with the candidate(s) and that they have the fit with you – chemistry and rapport are important. More important in fact than having experience in your specific line of business. Once chosen your BOA will need orientation to your key business issues and background information so that its members can begin to provide advice tailored to your key business issues. You can use the individuals and/or the BOA group as a resource. Regular meetings would be used to address a specific slate of current challenges and individual members could be personally utilized where there is a specific need. All of this is done at your pace and according to your agenda.
Am I Ready?
If you are struggling to keep up with the operational demands of your business or do not want to continue in an in-depth operational role, you are ready for a BOA. Working on your business is a job as big or bigger than working in your business and navigating your transition to a full-time leader is what a BOA can assist with. This transition is a big change for you personally as a leader and for your business and should be approached in a methodical, stepwise approach. A BOA can help map out what that will look like, support you when things get tough, and provide you with unbiased and honest feedback along the way.
If you are concerned about hearing frank and honest feedback about your role and plans for yourself and the company, you may not be ready for a BOA.
Are there limits on what I can use an Advisory Board for?
No. The BOA is there to provide you with whatever support you need.
- Do you have the right people in the right roles?
- How can I integrate a family member into the business effectively?
- Is my financial reporting lacking, and what financial information would be helpful for decision-making?
- What strategic business direction is best for my company?
These are just a small sampling of what support you can expect. A BOA can also provide a level of personal support where life changes such as divorce or uncertainty over family succession, for example, are on your mind.
Are our conversations confidential?
Yes. Each BOA member will sign a comprehensive Confidentiality Agreement. Members are well versed with the importance of maintaining a confidential space where sensitive matters can be discussed and plans formulated, without concern for the release of such information. In practical terms you will need to get comfortable with sharing more information, as your level of comfort with the BOA increases. Early successes in helping you solve an issue will help build the trust that will be needed to make the BOA most effective. As the relationship with the BOA matures and you are comfortable with sharing more, you will be able to dive into more complex issues that require a deeper understanding of your business.
How much business information do I need to share?
As much as you are comfortable with. This will change over time as you become more comfortable with the BOA members and the skills that they provide. As with any undertaking the fuller the understanding that the BOA has of your business, people, and existing business landscape, the greater the effectiveness of the advice you will receive.
What if the advisors do not come from my specific business area?
The strength of a BOA comes from the diversity of its members and the broad slate of knowledge and experience they bring with them. Often it is helpful if at least one member, shares your background whether that is in financial services, manufacturing or retail, for example. That diverse experience will provide an alternative perspective which will ideally inspire new thinking and approaches. It might also bring into the conversation elements that you were not even aware were available to you.
Do Advisory Board members charge for the use of their connections or resources?
No. A BOA is compensated for the time they spend working with you. There is no charge for introduction to their contacts, resources, etc. BOA members also get personally engaged in the work they do with a client and your successes are their successes. Typically, the time billed is less than the time made available to you – not every conversation is on a clock!
Are there meetings and are they in person or virtual?
Meetings can be done virtually however I suggest that in-person meetings are needed to establish the personal connection between the owner/operator and BOA members, which is needed to develop trust and ensure an effective board.
We recommend that meetings be formally structured and held quarterly. Each meeting would have a set list of items you wish to discuss (and any background info if applicable), shared with them ahead of the meeting so they can prepare. However, this can be whatever structure you want. Scheduled meetings provide an incentive to take stock of what matters are really on your mind, how best to address them, and what discussion I need at a high level to get things moving. I highly suggest that meetings be scheduled a year in advance as all involved will likely have scheduling conflicts that can only be addressed well ahead of time. The regular meetings do not restrict you from utilizing the BOA informally or with additional meetings as you need them.
Should I delay meetings until business challenges are under control?
No. The best use of an Advisory Board is when there is turmoil, uncertainty or tough or strategic matters to be dealt with. Advisory Board members are not there to pat you on the back when the job is done although they will be pleased to see you and your business succeed. They are there to help you meet those challenges head on, help you with your thinking, assist you with resources and provide guidance when they don’t see things as dire as you might. This is invaluable to the leader of a business and available as you need it.
Do I tell my employees I have an Advisory Board?
It is best to gauge this after discussion with the BOA members. In general, it is better to establish with your management team that you have engaged a BOA to help with ensuring the future success of the company, and in turn the security of their jobs in the long term. If appropriate, bring in senior management team members to report on their area in a BOA meeting, this provides an opportunity for the management team to personally meet your BOA and also for your BOA to provide feedback to you.
What resources can Advisory Board members provide me with?
One of the main benefits outside of experienced advice and guidance that a BOA member can provide are contacts that they have developed over their career. If you have an issue, an HR or IT systems matter for example, it can take a lot of work to find the right resource, trust it and get the results you expect. False starts are a given. Contacts that have been vetted by BOA members and found to be successful at solving issues with a specific business function can help you shorten the process and provide you with a quicker path to a solution. A resource can be at a basic level such as a supplier or government contact to high-level resources such as candidates for CFO or Operations Director.
A Board of Advisors is an effective and sophisticated tool that a business owner/operator can use to help with complex and tough business decisions. It can help you develop future strategy, provide perspective on your business thinking and support you when tough situations or decisions are at hand. It is extremely flexible and can provide you with a resource like no other for your business. Consider setting up a Board of Advisors if you are ready to take your business to the next level.
As an Osborne Principal, Terry McGowan offers strategic guidance to businesses facing sales or operational challenges both in Canada and internationally.
