Piccirilli: Don’t do it alone. Create advisory board
- Small businesses can get ahead by creating an advisory board for strategic initiatives.
In today’s business environment, you always have to be one step ahead. The end goal for any business — large or small — is to be profitable and see continued, sustainable growth.
Despite research stating that only a low percentage succeed, a small business is never started with the idea of failing. Also, no business has ever been successful without an innovative approach with their product, service offerings or approach to strategic growth.
It is important to keep in mind that while not all are created equal many small businesses experience the same challenges at similar stages of their development. Recognizing these stages can aid in assessing your own business growth strategy. However, choosing the right growth strategy is contingent on the type of business and available resources.
Businesses need a competitive advantage to stand out and many gain that advantage by bringing on an advisory board. This board is not involved in the day-to-day, but provides strategic counsel and business planning support. An advisory board does not necessarily have authority over the company, but offer advice and guidance over growth initiatives.
Depending on the business, an advisory board can take many different forms and serve multiple purposes. In establishing such a board, a company should have a goal in mind for how the board can fit into the company’s business model. Once in place, target board members with specific skills and expertise that the company can use to achieve its goals and objectives.
When establishing an advisory board, it’s important to identify relevant markets and key players within that market that could best serve the firm’s growth and plans.
Potential members should be trusted and well-respected within their industry, community and have an extensive contact list to help in building relationships and opening future opportunities. These individuals can help meet a company’s educational needs, provide leadership and intellectual insight, and offer a sounding board for senior management about strategic decisions.
Successful growth of any small business requires forecasting and planning; in other words businesses have to think about the present and the future. Having a seasoned and trusted advisory board of individuals with an successful track provides the necessary counsel to plan and forecast accordingly.
Advisory board members get excited about the “entrepreneurial spirit” that small businesses possess, and want to share their experiences and knowledge to help businesses drive growth. The board’s cumulative experience is made up of proven strategies that have shaped their own businesses.
The process of building and maintaining an advisory board is ongoing. It will always be a learning experience, from the formation of an advisory board to applying their advice. It is important that business owners show commitment to the advisors they bring on and continue to make their roles fulfilling and engaging.
So why not bring that knowledge into your company and emulate their successes?
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John R. Piccirilli is owner of HNP Capital LLC. in Pittsford. Interested in being a Nextpert? Email: RocNext@Democratand Chronicle.com.