Can an Advisory Board Help You Grow Your Business?
An advisory board is an informal group of three to five industry professionals who provide advice and guidance to a family business. They typically meet with a firm’s senior management team and key family members regularly, such as quarterly or semi-annually, to provide an outside perspective and valuable insights.
Many business owners find advisory boards to be powerful management tools that expand the depth and breadth of their experience and can help them succeed as they:
1. Offer skills that fill potential gaps. A carefully selected advisory board will offer strengths that complement your weakness by filling knowledge gaps. The right mix of board members will have a diverse skill set and will be able to offer unique insights and different perspectives.
2. Add credibility to your business. Credentialed industry professionals can add legitimacy to your business that gives you a competitive edge. In addition, they can often make important introductions.
3. Provide a sounding board for your ideas. Before you launch a new product or spend money enhancing your technology, your advisory board can offer informed feedback and suggestions you may not have considered.
When filling board positions, consider the skills you need to achieve your long-term goals as well as group dynamics; and, be straightforward about the commitment you need. Professionals you currently work with, such as your wealth advisor, attorney and accountant are great resources for referrals.
An advisory board provides input that can help you build your business and your legacy. If you need more information to determine whether an advisory board is appropriate for your business, contact your Luma Wealth advisor for additional insights and guidance.