Running a privately owned business can be a lonely and sometimes stressful role. Having access to high quality advice from an Advisory Board can go some way to mitigating these issues and enhance your business’ odds of success.
Business owners usually operate their business using their own expertise, experience and perspective. Advisory Boards allow the business owner to access a different array of skills and perspectives from a group of people who usually have experience beyond that of the owner.
An Advisory Board is a select group of independent people who provide advice and support to the owners, shareholders and/or directors of a business. They provide non-binding strategic advice to organisations. This gives greater flexibility in how they are structured and managed, when compared to a board of directors.
Many new or smaller businesses choose to have an Advisory Board in order to benefit from the knowledge and experience of others, but to not encumber them with the rigours of a more formal board of directors.
“Being the leader of a business can be very isolating, but by having an Advisory Board it allows business owners to break free from their isolation and gives them a sounding board to validate their strategies” says Mark Roderick, Managing Director of Perks Integrated Business Services.
Advisory Boards should have access to information that augments management knowledge. This includes knowledge about local metrics and data in the current social, legal, political and trading environment.
An Advisory Board can give the business the opportunity to form associations with respected and influential people while not committing those involved to the time commitments of being a company director.
Advisory Board members can also enhance a company’s relationship networks and positively influence its reputation as board members become company advocates.
“An Advisory Board provides the immediate benefit of diverse expertise, proven experience, independent perspective and quality contacts” says Mark Roderick.
They also provide a range of other benefits including:
- Having additional skills and knowledge to draw from
- Enhanced company reputation and credibility in the marketplace
- Increased consumer and investor confidence
- Attraction of a higher standard of employees by demonstrating a commitment to business growth
- Providing valuable ‘outside’ perspective on business issues especially for family businesses.
Advisory boards may be customised to meet the needs of any business owner at a particular point in time. The structure, the advisors appointed, method of operation and level of usage can also be adjusted as needed.
If you would like more information or advice on setting up an advisory board for your business call Perks today on 8273 9300.
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