Q: My partner and I are planning to start our own business in a field in which we are very experienced. We don’t need financing, so why should we spend time preparing a business plan? My father didn’t have a business plan when he successfully started and ran his business many years ago.
A: Starting your own business can be the most rewarding experience of your life or it could become your worst nightmare. Though the overall statistics vary, at a minimum, half of the small businesses fail within the first two years and 80% fail within the first five years.
Why do so many small businesses fail?
Business is risky, especially starting a new one. You may be risking your own, someone else’s, or borrowed money, but, at the very least, you are risking your own time, energy and self-esteem.
Many things have to go right for a business to succeed. You need the right idea, right market, right place, right time, right management and right amount of capital.
A well prepared business plan will help you answer these questions and reduce the risk. The value of a business plan lies in the thought process – not necessarily in the finished document. The disciplined, systematic approach helps you, and your advisors, to think things through thoroughly, to research to ensure all relevant facts are known and correct, and to look at your ideas critically.
So taking prudent steps to prepare an appropriate business plan which increases your chances of success would seem to make good sense.
A business plan does not necessarily guarantee success - you can start up successfully without one and you can fail with a good one. It simply increases your odds of success.
And, of course, business planning does not stop with a successful startup. Our business environment is always changing. The process of keeping your business plan current will provide you with a good decision making tool to deal with new challenges and opportunities when they arise.
Get help in preparing a business plan by attending SCORE educational events and using our free counseling services. Visit the SCORE website, www.scorehouston.org, where you will find training schedules, useful templates, links and other information to help you deal with many business issues including preparing a good business plan.
Lessons from an experienced entrepreneur
My SCORE colleague, Irwin Miller, spoke at a luncheon some time ago about his long and very successful career in the pharmaceutical business in Houston. He spoke about his struggles to get started and the difficulties and many successes along the way. He concluded by identifying several key lessons based on his experience in running a successful small business.
• Hire good people. Effectively managing people is, of course, very important in running small businesses but it all starts by hiring trustworthy, hardworking, and capable people in the first place. If you don’t, you’ll spend more time doing their job than doing yours.
• Constantly improve. Irwin says, “If it’s not broken, fix it.” If it works today, it may not work tomorrow because the environment is always changing. You need the attitude that whatever is done today, can always be done better.
• Always innovate. Finding new ways of doing things is the best way to beat competition. The market rewards those who are the first to produce a new and valuable product or service.
• Put the customer first. Business starts and ends with your customers. If they feel they are your first priority they will keep coming back. Understand their needs and do everything you can to satisfy them. Satisfied customers are your most effective marketing tool and often are the best source of information for improving your business. So, ask them what you can do better.
• Take care of internal customers. Internal customers are your employees, suppliers, and service providers who are indispensable to operating a profitable business. Treat them well and they’ll spend that little extra effort to get the job done well and help you through difficult situations.
• Always keep commitments. Never let anybody down even if you have to eat some additional expense or spend some extra time to do what you promised. Your word must be golden and is essential to building a good, long-term reputation.
• Work hard. Most small businesses require a tremendous effort by the owners especially in the early going. You’ve got to attend to all the little details. Running a small business is not for the faint of heart. There will be many bumps along the road but you need to keep plowing through to succeed.
Other successful business men or women may have other key points but they won’t be too dissimilar to Irwin’s.
• Hire good people. Effectively managing people is, of course, very important in running small businesses but it all starts by hiring trustworthy, hardworking, and capable people in the first place. If you don’t, you’ll spend more time doing their job than doing yours.
• Constantly improve. Irwin says, “If it’s not broken, fix it.” If it works today, it may not work tomorrow because the environment is always changing. You need the attitude that whatever is done today, can always be done better.
• Always innovate. Finding new ways of doing things is the best way to beat competition. The market rewards those who are the first to produce a new and valuable product or service.
• Put the customer first. Business starts and ends with your customers. If they feel they are your first priority they will keep coming back. Understand their needs and do everything you can to satisfy them. Satisfied customers are your most effective marketing tool and often are the best source of information for improving your business. So, ask them what you can do better.
• Take care of internal customers. Internal customers are your employees, suppliers, and service providers who are indispensable to operating a profitable business. Treat them well and they’ll spend that little extra effort to get the job done well and help you through difficult situations.
• Always keep commitments. Never let anybody down even if you have to eat some additional expense or spend some extra time to do what you promised. Your word must be golden and is essential to building a good, long-term reputation.
• Work hard. Most small businesses require a tremendous effort by the owners especially in the early going. You’ve got to attend to all the little details. Running a small business is not for the faint of heart. There will be many bumps along the road but you need to keep plowing through to succeed.
Other successful business men or women may have other key points but they won’t be too dissimilar to Irwin’s.
Common Mistakes Small Businesses Make
Q: Now that I’ve gotten through the startup phase, what are some of the most frequent mistakes made by small business owners?
A: Our SCORE counselors talk to small business owners from time to time who may be struggling for a variety of poor decisions they may have made. While the list is long, the following are a few of the more common and serious mistakes we see.
People usually start with enough money to open the door, but often not enough to keep the door open. Their customers are happy, sales are growing, and they may even have broken even. Then that unexpected expenditure appears or a large inventory invoice or tax payment comes due, but there’s no money in the bank! Things snow ball from there and the business is in real trouble. The bank won’t lend them more funds, vendors won’t extend credit or a big customer won’t or can’t pay his invoice on time. They needed more contingency in their working capital budget at startup.
Sometimes, they stop planning. In particular, they don’t continue doing the kind of market research they did before they started up. So something in their environment starts changing and they are not aware of it. Their competition adjusts to the change before they do and takes the advantage. Our business environment is always changing and we need to frequently reassess where we are and where we are going to stay on the right track.
Why do they stop planning? Often it’s because they spend so much time running their business that they can’t find time to manage their business. They are so deeply involved in the operations they can’t see the future. Small business owners need to set aside specific time to attend to the management functions that keep their businesses running smoothly.
Sometimes the owner burns out and the business starts deteriorating. Owners can spend an enormous amount of time and energy starting and running a small business. This can take a heavy toll on the owners. Owners need to take time to relax and enjoy family and friends to recharge those business batteries.
And then they don’t seek timely advice. Small business owners need trusted advisors or mentors. They need someone to provide them objective opinions, someone they can bounce ideas off of. Family and friends may not always provide that unbiased opinion. Your advisors might include your attorney, accountant, banker or SCORE counselor. And keep your mentors informed so they can provide timely advice when needed.
A: Our SCORE counselors talk to small business owners from time to time who may be struggling for a variety of poor decisions they may have made. While the list is long, the following are a few of the more common and serious mistakes we see.
People usually start with enough money to open the door, but often not enough to keep the door open. Their customers are happy, sales are growing, and they may even have broken even. Then that unexpected expenditure appears or a large inventory invoice or tax payment comes due, but there’s no money in the bank! Things snow ball from there and the business is in real trouble. The bank won’t lend them more funds, vendors won’t extend credit or a big customer won’t or can’t pay his invoice on time. They needed more contingency in their working capital budget at startup.
Sometimes, they stop planning. In particular, they don’t continue doing the kind of market research they did before they started up. So something in their environment starts changing and they are not aware of it. Their competition adjusts to the change before they do and takes the advantage. Our business environment is always changing and we need to frequently reassess where we are and where we are going to stay on the right track.
Why do they stop planning? Often it’s because they spend so much time running their business that they can’t find time to manage their business. They are so deeply involved in the operations they can’t see the future. Small business owners need to set aside specific time to attend to the management functions that keep their businesses running smoothly.
Sometimes the owner burns out and the business starts deteriorating. Owners can spend an enormous amount of time and energy starting and running a small business. This can take a heavy toll on the owners. Owners need to take time to relax and enjoy family and friends to recharge those business batteries.
And then they don’t seek timely advice. Small business owners need trusted advisors or mentors. They need someone to provide them objective opinions, someone they can bounce ideas off of. Family and friends may not always provide that unbiased opinion. Your advisors might include your attorney, accountant, banker or SCORE counselor. And keep your mentors informed so they can provide timely advice when needed.
Characteristics of successful franchisees
Q: Is going the franchise route a better choice than starting your own business?
A: During the past several decades, franchising has become not only a uniquely American institution, but also one of the leading doorways into small business ownership. Every year, thousands of individuals choose to get into business ownership via the franchise route. But not everyone is suited to successfully operate a franchise.
To make the right choice for your own situation requires careful thought about your own goals, skills and personality and should be done before searching for and evaluating franchises. So what are the characteristics of people best suited for franchises?
If your appetite for risk is low, a franchise may be your best choice. A franchise lowers the risk because someone else has already pioneered the concept, tested the ideas and found out what works and what doesn’t. If you want to do all of those things with your own idea, then start a business yourself.
Successful franchisees don’t like to reinvent the wheel. They like to work within the proven systems and established procedures of the franchisor. They constantly ask advice of the franchisor support staff and other successful franchisees and follow the advice they get. They understand that they don't know all the answers and are willing to ask for help when they need it. This attitude enables them to achieve success more quickly.
Franchisees need to be prepared to give up some independence of action in exchange for the advantages the franchise offers them. The franchisor will specify how certain things must be done as part of the franchise agreement, but a good franchisor will be able to provide the training and support services needed to position the franchisee for success.
People and team-building skills are usually required of franchisees as are the abilities to plan, organize, administer and direct the work activities of employees. These skills are used to create loyalty, value and trust, and are probably the most important characteristics of all.
Those who have a firm sense of what they want to achieve and the drive and ability to execute a proven business model are far more likely to be successful. They will do whatever it takes to get the job done. This attitude shows in their every action like putting in long hours and handling multiple tasks. No matter what franchise you're interested in, you can be sure it's going to take work to make it successful.
After you can honestly say that you have these characteristics, then begin your franchise search and prepare a business plan.
A: During the past several decades, franchising has become not only a uniquely American institution, but also one of the leading doorways into small business ownership. Every year, thousands of individuals choose to get into business ownership via the franchise route. But not everyone is suited to successfully operate a franchise.
To make the right choice for your own situation requires careful thought about your own goals, skills and personality and should be done before searching for and evaluating franchises. So what are the characteristics of people best suited for franchises?
If your appetite for risk is low, a franchise may be your best choice. A franchise lowers the risk because someone else has already pioneered the concept, tested the ideas and found out what works and what doesn’t. If you want to do all of those things with your own idea, then start a business yourself.
Successful franchisees don’t like to reinvent the wheel. They like to work within the proven systems and established procedures of the franchisor. They constantly ask advice of the franchisor support staff and other successful franchisees and follow the advice they get. They understand that they don't know all the answers and are willing to ask for help when they need it. This attitude enables them to achieve success more quickly.
Franchisees need to be prepared to give up some independence of action in exchange for the advantages the franchise offers them. The franchisor will specify how certain things must be done as part of the franchise agreement, but a good franchisor will be able to provide the training and support services needed to position the franchisee for success.
People and team-building skills are usually required of franchisees as are the abilities to plan, organize, administer and direct the work activities of employees. These skills are used to create loyalty, value and trust, and are probably the most important characteristics of all.
Those who have a firm sense of what they want to achieve and the drive and ability to execute a proven business model are far more likely to be successful. They will do whatever it takes to get the job done. This attitude shows in their every action like putting in long hours and handling multiple tasks. No matter what franchise you're interested in, you can be sure it's going to take work to make it successful.
After you can honestly say that you have these characteristics, then begin your franchise search and prepare a business plan.
What does it take to succeed in small business?
Q: I’m trying to decide whether to start my own retail business. I have the experience to successfully operate the business, but what else does it take to succeed?
A: The fact that you are looking for success criteria indicates a realistic approach to entrepreneurship. Many folks jump in with both feet and ask questions later.
Entrepreneurs are generally inspired by at least one of two factors – independence and financial gain. Independence is sought to take risks and escape from other people’s direction. Many seek a haven from corporate bureaucracy. They want to be their own master, have a strong need for achievement and the freedom to make decisions. In short, they want the freedom that they did not have as employees.
The motivation for financial gain is generally considered to be unlimited. Importantly, the gains that are possible in new businesses must be great enough to offset the high degree of risk. Many entrepreneurs are so focused on escape that they ignore the unbalanced relationship between risk and reward and forge ahead in a high risk enterprise without taking the prudent steps to minimize risk, e.g., preparing a good business plan.
A Small Business Administration study identified five important predictors of an entrepreneur’s success. Drive is the most important attribute. New small business owners can expect long hours, high stress and endless problems, as they launch a business. The ability to maintain the necessary stamina should not be confused with the desire to succeed, although they are often interrelated.
Thinking ability encompasses creativity, critical thinking, analytical abilities, and originality. Often questions in this area include: Can I make a reasonable decision? Can I plan my strategy and take responsibility for carrying it out? Do I know when I need help and where to get it? No genius required here, just the ability to think clearly and analyze options.
People skill recognizes the importance of the ability to motivate employees, sell customers, negotiate with suppliers, and convince lenders. Personality plays a big part in success in this area.
Communication skill is the ability to make yourself understood. Part of this skill is the acknowledgement that muddled or abusive communications go unheeded.
Technical ability speaks to the need for entrepreneurs to know their product or service and their market. They must be experts in their field to operate their business with ease.
Finally, speak with a veteran SCORE counselor to get an objective assessment of your probability of success.
A: The fact that you are looking for success criteria indicates a realistic approach to entrepreneurship. Many folks jump in with both feet and ask questions later.
Entrepreneurs are generally inspired by at least one of two factors – independence and financial gain. Independence is sought to take risks and escape from other people’s direction. Many seek a haven from corporate bureaucracy. They want to be their own master, have a strong need for achievement and the freedom to make decisions. In short, they want the freedom that they did not have as employees.
The motivation for financial gain is generally considered to be unlimited. Importantly, the gains that are possible in new businesses must be great enough to offset the high degree of risk. Many entrepreneurs are so focused on escape that they ignore the unbalanced relationship between risk and reward and forge ahead in a high risk enterprise without taking the prudent steps to minimize risk, e.g., preparing a good business plan.
A Small Business Administration study identified five important predictors of an entrepreneur’s success. Drive is the most important attribute. New small business owners can expect long hours, high stress and endless problems, as they launch a business. The ability to maintain the necessary stamina should not be confused with the desire to succeed, although they are often interrelated.
Thinking ability encompasses creativity, critical thinking, analytical abilities, and originality. Often questions in this area include: Can I make a reasonable decision? Can I plan my strategy and take responsibility for carrying it out? Do I know when I need help and where to get it? No genius required here, just the ability to think clearly and analyze options.
People skill recognizes the importance of the ability to motivate employees, sell customers, negotiate with suppliers, and convince lenders. Personality plays a big part in success in this area.
Communication skill is the ability to make yourself understood. Part of this skill is the acknowledgement that muddled or abusive communications go unheeded.
Technical ability speaks to the need for entrepreneurs to know their product or service and their market. They must be experts in their field to operate their business with ease.
Finally, speak with a veteran SCORE counselor to get an objective assessment of your probability of success.
Family Businesses Meed Extra Care
The family business is an American small business tradition, one that gives parents, spouses, children, and other relatives an opportunity to contribute to and share in a dream that can grow and prosper over many generations.
But without proper planning and management, family businesses can also be the source of contention, acrimony, and even irreparable harm to once-loving relationships. That’s why it’s important for aspiring entrepreneurs to fully understand the pros and cons of going into business with relatives and in-laws. The needs of the business may not always be compatible with family harmony, resulting in a situation that if handled improperly, can jeopardize the survival of both.
When bringing family members into a business for the first time, especially as investors or in a startup situation, you should consider putting the business relationship in writing. Family members sometimes buy into the excitement of a business startup without a clear idea of their role once the business is underway.
In an ongoing family business, it’s important to treat family members fairly. While some experts advise against hiring family members, that sacrifices one of the great benefits of a family business. Countless small companies would never have survived without dedicated family members. But avoid favoritism. Pay scales, promotions, work schedules, criticism and praise should be evenhanded between family and non-family employees.
Don’t become the employer of last resort for every distant relation who calls. Base employment on the skills or knowledge they can bring to the business. If your kids will be joining the business, make them get several years of business experience elsewhere first to help them gain perspective of how the business world works outside of a family setting.
Problems and differences of opinion are common in a family business, so it’s important to keep lines of communication clear. Weekly meetings to assess progress, air differences and resolve disputes work well for many family firms.
Just as solo entrepreneurs and non-related partners need to separate their business and personal lives, owners of family businesses need to prevent work-related issues from dominating family activities. While it may be difficult to totally confine shop-talk to the workplace, make it a standing rule not to discuss work and business issues at social gatherings or at designated “family times” where the focus should be on other things.
Many SCORE counselors owned family businesses. Why not have a chat with one of them and take advantage of their experience. Visit the SCORE website, www.scorehouston.org, to learn about our counseling, mentoring and education resources.
But without proper planning and management, family businesses can also be the source of contention, acrimony, and even irreparable harm to once-loving relationships. That’s why it’s important for aspiring entrepreneurs to fully understand the pros and cons of going into business with relatives and in-laws. The needs of the business may not always be compatible with family harmony, resulting in a situation that if handled improperly, can jeopardize the survival of both.
When bringing family members into a business for the first time, especially as investors or in a startup situation, you should consider putting the business relationship in writing. Family members sometimes buy into the excitement of a business startup without a clear idea of their role once the business is underway.
In an ongoing family business, it’s important to treat family members fairly. While some experts advise against hiring family members, that sacrifices one of the great benefits of a family business. Countless small companies would never have survived without dedicated family members. But avoid favoritism. Pay scales, promotions, work schedules, criticism and praise should be evenhanded between family and non-family employees.
Don’t become the employer of last resort for every distant relation who calls. Base employment on the skills or knowledge they can bring to the business. If your kids will be joining the business, make them get several years of business experience elsewhere first to help them gain perspective of how the business world works outside of a family setting.
Problems and differences of opinion are common in a family business, so it’s important to keep lines of communication clear. Weekly meetings to assess progress, air differences and resolve disputes work well for many family firms.
Just as solo entrepreneurs and non-related partners need to separate their business and personal lives, owners of family businesses need to prevent work-related issues from dominating family activities. While it may be difficult to totally confine shop-talk to the workplace, make it a standing rule not to discuss work and business issues at social gatherings or at designated “family times” where the focus should be on other things.
Many SCORE counselors owned family businesses. Why not have a chat with one of them and take advantage of their experience. Visit the SCORE website, www.scorehouston.org, to learn about our counseling, mentoring and education resources.
Are You A Duck or An Eagle?
Are You A Duck or An Eagle?
Harvey Mackay is the author of two previous New York Times #1 bestsellers, “Swim With The Sharks Without Being Eaten Alive” and “Beware the Naked Man Who Offers You His Shirt”. In total, Harvey's books have sold 10 million copies worldwide, and have been translated into 37 languages. He also is one of America's most popular and entertaining business speakers. Toastmasters International named him one of the top five speakers in the world.
In 1959, at the age of 26, Harvey purchased a small and failing company that produced envelopes. Today that company has grown into a $100 million business employing over 600 people. It’s one of the nation's major envelope manufacturers, producing 25 million envelopes a day. As chairman, Harvey's philosophy is engrained in the company, beginning with its motto:
“Do what you love, love what you do and deliver more than you promise.”
Harvey Mackay tells a wonderful story about a cab driver that proves his point. Allow me to paraphrase the story of Wally the cab driver.
McKay was waiting in line for a ride at the airport. When a cab pulled up, the first thing Harvey noticed was that the taxi was polished to a bright shine. Smartly dressed in a white shirt, black tie, and freshly pressed black slacks, the cab driver jumped out and rounded the car to open the back passenger door for Harvey. The driver then handed him a laminated card and said:
'I'm Wally, your driver. While I'm loading your bags in the trunk I'd like you to read my mission statement.'
That was something totally unexpected from a cab driven, but something that immediately caught the attention of a business strategist like Harvey McKay.
Mission Statement: To get my customers to their destination in the quickest, safest and cheapest way possible in a friendly environment.
This blew Harvey away. And, as he got into the cab, he noticed that the inside of the cab was as spotlessly clean as the outside. As he slid behind the wheel, the driver asked, 'Would you like a cup of coffee? I have a thermos of regular and one of decaf.'
Jokingly, McKay said, 'No, I'd prefer a soft drink.'
Wally smiled and said, 'No problem. I have a cooler up front with regular and Diet Coke, water and orange juice. Which would you prefer?”
Almost stuttering, Harvey said, 'I'll take a Diet Coke.'
Handing him his drink, the driver continued, 'If you'd like something to read, I have The Wall Street Journal, Time, Sports Illustrated and USA Today.' Then the driver handed him another laminated card, explaining, 'These are the stations I get on my satellite radio, in case you'd like to listen to some music. I have the air conditioning on. Is the temperature comfortable for you?”
Still stunned, Harvey muttered, “Yeah, sure, that feels great. Tell me Wally, have you always served customers like this?'
Wally smiled into the rear view mirror. 'No, sir, not always. In fact, it's only been in the last couple of years. My first five years as a cabbie, I spent most of my time complaining like all the rest of the drivers do. Then one day I heard some personal growth guru on the radio. He said that if you get up in the morning expecting to have a bad day, you will rarely disappoint yourself. He also said, 'Stop complaining! Differentiate yourself from your competition. Don't be a duck. Be an eagle’. I thought that was pretty funny. But the man on the radio explained that ducks quack and complain. Eagles soar above the crowd.''
'That hit me right between the eyes,' Wally said. I realized that I was a duck, always quacking and complaining, so I decided to change my attitude and become an eagle. I looked around at the other cabs and their drivers. The cabs were dirty, the drivers were unfriendly, and their customers were unhappy. So I decided to make some changes. I put in a few at a time. When my customers responded well, I did more.'
'I take it that has paid off for you,' Harvey said.
'It sure has,' Wally replied. 'My first year as an eagle, I doubled my income from the previous year. This year I'll probably quadruple it. You were lucky to get me today. I had just delivered one of my regular customers to the airport. I don't sit at cabstands anymore. My customers call me for appointments on my cell phone or leave a message on my answering machine. If I can't pick them up myself, I get a reliable cabbie friend to do it and I take a piece of the action.'
Wally the cab driver made a phenomenal discovery, and ended up running a limo service out of a Yellow Cab, doubling, then quadrupling his income. He decided to stop quacking like a duck and start soaring like an eagle.
How about you? How could your business profit from the same attitude change that Wally the cab driver made? What changes would be necessary for you to differentiate yourself from the competition and begin to soar like an eagle?
Advisory boards are powerful tools
Q: I overheard some business people talking about using advisory boards. What are they and what can they do for me?
A: There is no way you can have all the information and answers to every nuance of the business world. There’s just too much to know and the world keeps changing. So, you need to gather around you people with a genuine interest in your company and with the knowledge and experience to guide you in your business decision making.
These advisors could be friends from a different industry or field who provide a unique perspective. Or they may be recently retired executives or managers, vendors, or other business people who want to see you succeed. They are typically called an Advisory Board and serve as a sounding board, provide a source of ideas and expertise, and tell you if you are about to mess up.
Two to three people is sufficient for an Advisory Board for a small business. They will be expected to meet with you (usually on a quarterly basis) to discuss and advise. While being an active part of your business is payment of a sort, you could also pay your Advisory Board members by hosting a nice lunch each meeting, or by possibly paying each Advisory Board member an honorarium each time.
Prepare for each meeting of your Advisory Board by distributing an agenda to your Board members ahead of time. Include any related materials necessary. Perhaps more difficult, you need to be prepared to be completely open and frank with your Advisory Board, sharing both your hopes and your fears. They won't be able to advise you properly or well if you hold back.
If you are unable to find the right advisors, try the SCORE SMART Squad (Score Mentoring And Resource Team). This is a free service for small business owners and managers. They can provide one or a team of SCORE counselors with the experience to serve on your Advisory Board. Send an email to smartsquad@scorehouston.org with your name, contact information, and a brief description of your business and the nature of the challenges you are facing.
An Advisory Board is an especially valuable management resource for small businesses. No single person can know everything, and ad hoc, on the fly advice can be worse than none. An Advisory Board that meets regularly gets to know you and your business and can provide the management expertise you need to avoid mistakes and keep your business on the right course.
A: There is no way you can have all the information and answers to every nuance of the business world. There’s just too much to know and the world keeps changing. So, you need to gather around you people with a genuine interest in your company and with the knowledge and experience to guide you in your business decision making.
These advisors could be friends from a different industry or field who provide a unique perspective. Or they may be recently retired executives or managers, vendors, or other business people who want to see you succeed. They are typically called an Advisory Board and serve as a sounding board, provide a source of ideas and expertise, and tell you if you are about to mess up.
Two to three people is sufficient for an Advisory Board for a small business. They will be expected to meet with you (usually on a quarterly basis) to discuss and advise. While being an active part of your business is payment of a sort, you could also pay your Advisory Board members by hosting a nice lunch each meeting, or by possibly paying each Advisory Board member an honorarium each time.
Prepare for each meeting of your Advisory Board by distributing an agenda to your Board members ahead of time. Include any related materials necessary. Perhaps more difficult, you need to be prepared to be completely open and frank with your Advisory Board, sharing both your hopes and your fears. They won't be able to advise you properly or well if you hold back.
If you are unable to find the right advisors, try the SCORE SMART Squad (Score Mentoring And Resource Team). This is a free service for small business owners and managers. They can provide one or a team of SCORE counselors with the experience to serve on your Advisory Board. Send an email to smartsquad@scorehouston.org with your name, contact information, and a brief description of your business and the nature of the challenges you are facing.
An Advisory Board is an especially valuable management resource for small businesses. No single person can know everything, and ad hoc, on the fly advice can be worse than none. An Advisory Board that meets regularly gets to know you and your business and can provide the management expertise you need to avoid mistakes and keep your business on the right course.
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