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.