It’s tough for anyone who runs a business to remain completely objective. You have so much invested (time, energy, money), and you’re so close to so many minute details, that a sizable amount of subjectivity is bound to enter into everything you do. It’s for this very reason that many companies — and not just public ones — turn to boards of directors. In a private business, the board simply serves in an advisory capacity.
The purpose of an outside advisory board is to provide objective insight, fresh advice, business wisdom and expert counsel on many important matters without getting involved in day-to-day management. Some areas where a board can be especially helpful include:
- Technological advancements,
- Product development,
- Financing alternatives,
- Entering new markets,
- Internal growth,
- Expansion planning,
- Mergers and acquisitions, and
- Succession planning.
An advisory board can also help increase professionalism and accountability within your business and provide greater credibility with stakeholders. And for closely held businesses that are considering going public, board members who’ve been through the process can be invaluable.
Are you curious as to what an advisory board for your company might look like? Please give us a call. We can help you build a board and determine what areas of focus it should take on.