Article Contributed by Bert Doerhoff
From the early stages of creating a business it is well known that a board of advisors benefits, adds value and provides guidance for your business’ future. The key is to not only discover and engage the right advisors for your business but to build a network of trusted advisors and keep them. Just as any business advisor must invest their time to provide your business with advice, the business itself must as well invest time into the relationship.
How to Discover the Right Advisors
1. Define your needs
Here is where you lay out your objectives, key areas where guidance will primarily be needed, and the type of advice and information that is essential in or$er for you to achieve your business’ primary objectives. This is when you come to understand the complementary skills and diverse area of expertise needed within your board of advisors.
2. Grasp your struggles
Build your dream team of knowledge. It is likely that you as the business owner will not financially be able to hire from every area of expertise, but a few must not be overlooked.
Experts with related intelligence from your industry, especially areas you lack, is crucial. For example, you struggle with keeping your books, and would much rather focus on other areas of your business. This is where outsourcing yourkbookkeeping services to a professional accountant comes in handy.
Financial professionals that are well respected can significantly benefit your business. If possible, hiring those with an extensive amount of experience in addition to their expertise and past success in their area is a wise decision.
3. Set up-front expectations
If you desire a formal board, you must consult with each advisor about what they expect out of your relationship. Scheduling monthly meetings to discuss what needs to be done to continue the success of your business is a great idea. However, you may prefer more of an “informal” board to advise your business.
Informal boards are less structured and more of a mentorship opportunity for those looking to assist early entrepreneurs. Whether you decide on a formal or informal board of advisors, it is best to cover all details and expectations from the start.
4. Friendship
This is your business. Choose advisors that you can get along with, challenge and cooperate with effectively. You will want to keep an open and honest exchange of feedback with your advisors in order to maintain a mutual understanding of your vision. Since they are there to optimize the future of your business, this type of two-way relationship is essential.
5. Matching objectives in mind
You want advisors that provide honest and applicable advice to your company. These advisors should share the vision you have for your company, and should aspire to achieve the same goals. If not, there will be a constant push in different directions, putting the company at risk. People who keep the company’s success top of mind make for excellent potential candidates.
Remember to remain strategic and precise in deciding on your board of advisors. These individuals will help guide your business as it grows, and will enjoy the success with you. Good advisors are an invaluable resource to your success as a business owner.
About the Author:
Bert Doerhoff is owner and founder of Accubiz, a firm providing accounting services out of Jefferson City, Missouri. Accubiz specializes in small business accounting, bookkeeping services, and wealth management. Prior to opening his own firm, Doerhoff worked for Peat, Marwich, Mitchell & Co, which is currently known as KPMG. Frequently, he speaks at state level and national conferences on various business management topics.