Business Resource Services

August 2009

Don't Go It Alone! How to Put Together a Great Board of Advisors for Your Company
With so many businesses just operating on a day-to-day basis in these challenging times, focus on the future can be lost. Yet there is tremendous opportunity for those able to look out into tomorrow and beyond. A strong Board of Advisors (BOA) can provide invaluable guidance to business owners and help you develop a strategic plan for the future of your company. BOA members can also bring invaluable insight and experience to your business, help solve existing issues, and raise the tough questions that need to be asked (but oftentimes aren’t).

One of the most valuable functions of a Board of Advisors is to ask questions, both the obvious and “not so” obvious, according to Larry Rickert of Jim Kryshak Jewelers. “Because I had board members who weren’t from my industry, they weren’t afraid to ask questions that challenged the typical way of industry mindset. When we were contemplating giving away stock to some key people, they provided some much needed insight into some of the complications that might arise. They enable us to think through our actions in way that we would not have on our own,” said Rickert. Who should you ask? Ideally, you’d want individuals with all of the following characteristics: • Executives with entrepreneurial/family business experience • Intelligent, outspoken, and knowledgeable • Not afraid to ask the tough questions • Understanding of financial side • Strong in areas that existing management is not For example, if financials aren’t your strong suit, be sure to include at least one member who is good with the numbers. (Of course, we would highly recommend that all of your ownership, top management, and your board members participate in a Profit Mastery program to help improve your numbers skills!)	*Special Webinar* "How to Build a Great Board of Advisors for Your Business" September 17 10 AM PT 12 Noon CT 1 PM ET presented by Jim Kwaiser and Lauren Owen $25 per connection Flyer Register
Who shouldn’t you ask? Your current banker, attorney, insurance person, and/or financial planner. While these professionals should be providing you with invaluable advice and guidance on an on-going basis, they might either have too much of a vested interest in the business as it currently exists or too much loyalty to one owner to be ideal BOA members. Should working family members be included in the Board? Yes, says Jim Kwaiser, of Challenges, Inc, a family business consultant. Ideally, I’d like to see no more than nine members total composing the Board, with a minimum of four non-family members,” says Kwaiser. “And, working family members should be involved in selecting the non-family members.” Where do you find potential board members? I would start by asking the people I respect for recommendations. There is a wealth of retired and semi-retired entrepreneurs out there who are more than willing to advise others. The Institute of Management Consultants (IMCUSA.org) has a web site where businesses can list opportunities like board member openings, with detailed qualifications, for the IMC membership, who are professional consultants with a multitude of specialties. Go to “Find a Consultant” and then to “Post An Opportunity.” Want to know more about forming your own Board of Advisors? Plan on attending the upcoming webinar, “Don’t Go It Alone! How to Put Together a Great Board of Advisors for Your Company.” The webinar will be led by Jim Kwaiser of Challenges, Inc, and Lauren Owen of Lauren Owen LLC. More information is available for viewing and you can register online. Each attendee will also receive a checklist that lists the duties and responsibilities of a BOA member to help you in the process of assembling a BOA for your own company. Lauren Owen, principal at Lauren Owen, specializes in working with closely-held and family owned business. She has been instrumental in forming and facilitating peer performance groups in several industries, and has worked one on one with companies to help them develop strategic plans, and address financial and succession issues. For more information, email, call 206.427.2856, or visit her website. Lauren is a licensee of www.challengesinc.com.