You may have heard the term advisory board but what exactly is it and is it something that your small business could benefit from?
As you know, many large businesses have a group of influential people called the Board of Directors that make heavy decisions and have immense power. An advisory board is a group of trusted individuals that you find to seek out advice. They do not have any legal defined responsibilities, no power to make decisions without you, nor can they get rid of you as a board of directors can.
What are the benefits of an advisory board? Don’t we all hope to have in our personal life some trusted friends that we can go to when needed to ask their advice or seek their help? I know I do and they are very important to me and have been for years. It is the same in small business. These advisory board members are there for advice, guidance and support. When you have questions about business decisions, they are there for you.
Who makes up the board? That is completely up to you but most people seek out a variety of individuals that may be experienced in totally different areas. For example, you may choose to have an accountant, lawyer, a high profile community leader and a pastor. They all can give a variety of advice and bring different strengths to the table.
How do you go about selecting the members? Before the days of the internet, small business could find their members through the Chamber of Commerce or through word of mouth. Now with the age of technology, many are introduced through email, Google hangouts, LinkedIn and other sources. Though they may meet online first, most the time people still want the advisory board to meet face to face on occasion. Email is a good way to save time and make sure the person is a good prospect for your board before you actually spend the time meeting in person.
How often does the board meet? Usually they meet a few times a year. However, it may need to be more often on a start- up business.
Do you have to pay the members? Several of the members may volunteer their time. However, a lawyer and accountant often are paid an hourly fee.
For more advice on small business, please feel free to browse our blog and knowledge center. At Maxfilings, we can assist you with a variety of small business issues including incorporating your business. We wish you small business success!