Out of the Fortune 500, at least 50 large corporations such as Target and American Express have advisory boards? This could be the reason why these companies make millions of dollars each year. Their advisory boards consist of at least six experts to drive success.
A board of experts provide management with coaching on all aspects of a business such as marketing and utilizing technological trends. A winning advisory board gives you knowledge and improves critical thinking of a group to assist with the decision making process.
But how do you find a high-impact team that will boost your organization’s success? That’s what you can find out in this post. We’ve provided detailed information about the importance of a winning team and how to build one.
Why Are Advisory Boards Important?
Whether you’re a start-up business or you’ve been in the industry for a few years you can benefit from an advisory board. The role of advisory boards is not to make decisions for companies. The board consists of a team of experts in your industry that guides CEOs on how to operate a business or discuss how to solve problems.
Members of this board focus on an array of aspects within your company. Their main objective is to give their expertise to companies that may have limited knowledge on how to move forward with company growth or projects.
It’s important to have an advisory board, especially in times of a crisis when you have to face difficult decisions. Members of the board will guide you so you can make the best decisions for the future of your organization.
The Benefits Advisory Boards Provide
An advisory board is a low-risk way of growing your company. With a winning team, you can hone your skills and it opens up new opportunities for you to build your network. Here are additional benefits of advisory boards.
Builds Business Reputation
An advisory board allows you to test and discuss ideas when launching a new product or service. With a winning team, you can improve your company’s reputation in your industry. It also shows credibility to potential investors.
Demonstrates a Commitment to Company Growth
When you organize an advisory board it shows your commitment to improving your processes and expanding your company. With advice from the right experts, it will decrease potential risks when going ahead with a decision. This helps optimize company growth.
Draws on Your Skills
Do you feel like your knowledge and skills are lacking? You can learn a lot from the experts on your advisory board. This will help you build your skills and knowledge so you can solve problems quicker and devise plans to improve your business.
Attracts Quality Candidates
With the right advisory board, you may attract highly skilled candidates that will help expand your business. Candidates want to work for companies where they know they’ll have a chance to move up the corporate ladder. The more your advisory board helps you grow your business the more chance there is for employees to get promoted.
When Do Businesses Need Advisory Boards?
As a small or medium business, you may be wondering if you need an advisory board. Here are key elements that will confirm if you need a board of advisors:
- When you’re experiencing rapid growth
- If you want to build partnerships
- When you need to raise funds
- If you need to restructure your business
- When you enter new markets
- If you’re dealing with succession problems
- When you need help with staff development
- If you’re facing challenges with other shareholders
You as the business owner must determine the roles and responsibilities of the advisors to suit your requirements. What’s more, you’ll also need an advisory board if you want to stay ahead of your competitors.
How Should Businesses Select Advisory Boards?
Selecting the right advisory board is crucial. You need experts on your team that you can trust. Consider the following when building your board of advisors:
- What advice or input do I need?
- Why do I need advice from experts?
- How can the team guide the company?
- What issues need to be solved within the business?
On the other hand, every business is different so you may require a team with a different set of skills compared to your competitors. Here are tips to select the right advisory board for your needs.
Short Term or Long Term Objectives
Determine whether you need an advisory board for short or long term objectives. Start-up organizations typically need more assistance so they’ll need the assistance of an advisory board long term. If you are already established you may only need advisors for one or two projects. Ensure that the members you choose creates a strong corporate culture.
How Big Advisory Boards Should Be
The size of your organization and operations will determine the size of your advisory board. Small businesses may only need 3 experts on their team while larger companies may need 6 to 12 advisors. You could always add more advisors to your team as your company expands.
Create a Network Shortlist
Another way to select the right experts for your team is by researching candidates within your network and creating shortlists. Additionally, you could build a team with existing members in your company. Most companies opt for consultancy firms to assist them since they are trustworthy and credible.
Your Members Should Have a Variety of Skills
Trust and an excellent work ethic are two of the most important characteristics to look for when searching for advisors. Ensure you choose people based on the following:
- Members must completely understand your business and processes.
- They must have excellent communication skills
- Advisors must have excellent problem-solving skills
- They must have wisdom and courage to make difficult decisions
- Advisors must have excellent coaching abilities
- They must have a passion for something other than making money
Final Thoughts
You don’t have to search far and wide for advisory boards because Daveron Networking has a team of experts that could be the perfect fit for your organization. We can quickly learn everything there is to know about your company so we can become your board of advisors. This gives you more time to concentrate on the more important aspects of your business.
Ready to grow your business? Speak to our growth experts and learn how to expand your customer base, drive revenue growth, and optimize your business operations.
