And if you’re anything like me, you need others to ensure that you are structured properly and moving in the right direction.
For me, this oversight came in the form of a board of advisors – not directors, per se, as that would mean I work for them. I don’t report to this board and have no fiduciary responsibility to them. Rather, I have people who can guide me on this journey we call entrepreneurship.
My business was growing, and the decisions I was making professionally had long-term implications that needed a second, third, or fourth opinion. Numbers were climbing and issues were springing up that were bigger than I could solve with my home equity line of credit. From a planning standpoint, I started to feel as though I might be losing objectivity in some of my decision making.
But how to put together a company board? You can find all kinds of resources and how-to throughout the Web, but two quick thoughts from yours truly:
- Make sure there are people on the board who have little or no expertise in your own industry, but rather understand the building blocks of a startup or small business and have their own respective expertise. You want advisors who can look at your business from a completely objective standpoint and give you opinions that will help your navigate the perils of growing a company. Deep down, it doesn’t matter whether you are in retail or executive placement – like me – or any other industry. All successful businesses are built upon the same basic principles.
- During your meetings, check the BlackBerry/iPhone/Palms at the door. No distractions.
My board is comprised of experienced executives – not stockholders, not potential clients – with whom I have a personal relationship, who can look at my numbers without emotion, who can see around corners, who can help me make sure I am leading my company in the right direction for growth and prosperity for all parties involved.
And they are compensated for their decision making. But so am I.
Here’s what they get: Pay for their time. The amount is likely trivial to them at this point in their lives, but for me it’s a significant amount of money for a four-hour meeting. It shows them that I’m serious and that I value every minute of their time.
Here’s what I get: Sometimes I leave the meeting, having known the answer beforehand and even more confident in my decisions; other times, during the course of the meeting, I realize I need to take an entirely different direction.
The advisory board offers Capital TechSearch an excellent system of checks and balances to keep us running smoothly. A board is an invaluable resource for a small business owner.
Just be sure to listen to them. A good advisor has had many sleepless nights, and combined, they probably know your company even better than you do.
