NFIB

Energize Your Company by Creating a Board of Advisers
03/ 12/ 2002


Almost every successful large corporation has an active Board of Directors, which meets frequently to discuss ways in which the corporation can progress. The value of such a Board is that it brings together diverse experience and talents, which in total can often suggest new strategies that transcend what a single individual could create.

For a small or mid-size business that is not yet incorporated, a Board of Advisers (BOA) is usually more appropriate than a formal Board of Directors. In today’s Workshop, contributor Jeffrey Moses discusses the creation of such a Board.

A Board of Advisers (BOA) for a smaller company should not come together with actual powers to dictate company activities and directions. Rather, it would function solely in an advisory capacity, reviewing finances, examining problems, and suggesting any changes in strategy that might be needed.

When putting together a BOA, contact anywhere from3-10 men and women you feel have something unique to offer in the way of advising. BOA members will not receive financial compensation for their services, so you'll do best by inviting associates or friends, individuals whose judgement you've come to rely on. There is no best number. Invite each person to join the informal BOA, telling them that you would like to meet every 3-4 months (or more frequently if your company is in time of rapid transition or growth)to discuss all the ins-and-outs the company faces. Be sure to inform each person about all the other potential Board members you're contacting. And make them understand how much you would value their unique experience.

BOA meetings can be held at your place of business, if a room large enough is available. You can meet at someone's home, or in a public meeting room at a restaurant or hotel. Find a place that's comfortable and quiet. It should fit the means of your company, and may even be as simple as your reception area after hours or on weekends. The members of your Board should understand that continual cost-cutting is important for a growing business. Your meetings probably will be most productive if informal. This will encourage people to be spontaneous and creative.

Diversity in the members of your BOA is key. Include both men and women, and make sure that a variety of age groups are represented. The ideal BOA will include at least one retired individual who was successful in his or her career.

Since the majority of your BOA probably will be active in business, there may be the tendency at meetings for people to speak about their own company’s concerns. This should not be discouraged, within reason. At the first meeting set up a proposed time schedule for future meetings. Suggested schedule: you speak for 10 minutes, outlining specific situations and problems in your business. Each person on the BOA can then address the problem for 5-10 minutes, offering suggestions. After that, the remainder of the meeting should be casual, with a free interchange of thoughts and ideas. People will be more inclined to attend future meetings if they can use the time for networking and addressing some of their own situations. In all, a meeting should not go beyond 11/2 hours, perhaps 2 hours at most. Be sure to serve light refreshments (snacks, juices, soft drinks).Alcoholic beverages will not be appropriate in most instances, although beer or wine may be expected if a full meal is served.

Make sure that the meetings are in roundtable format, meaning that no one person dominates. You, as the business' owner, should act as host, master of ceremonies, and moderator for all activities and discussions.

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