Every Business Owner Needs an Advisory Board

These days staying ahead of the competition and market changes is necessary to the very

survival of the business. Just being good is not enough and mediocrity spells certain death for any business who allows it to occur. So, how can a business owner make sure that they are on top of it all? One way, is by making sure that a business owner surrounds himself/herself with like minded successful business owners.

The important thing is that business owners replenish their store of expertise on a constant basis. For years the best business minds in the country (and the world) have surrounded themselves with a trusted board of advisers and peer mentors. Today, this concept has merged into the idea of a mastermind group and the current business environment demands this approach. Let me explain why.

Most business owners get advice from their attorneys and  accountants as part of the normal course of business. By and large these advisors are technical experts in their own fields of knowledge and will see everything through the lens of their discipline. While this is definitely applicable when dealing with legal or tax advice, it may not be the best place to turn to when dealing with overall strategy.

 Likewise, if a business owner is fortunate enough to have a team of talented executives working for them these professionals may have a biased view towards the business. This means that they may not be willing to suggest the tough ideas due to personal agendas.
What is really needed is to have insight from trusted peers outside the business who do not have a vested interest in the business. 

This is not to say that a business owner’s executive team or advisors are worthless. Rather it is to point out the importance of having input from those who are trusted thinking partners with nothing to gain from the decisions that are made.

In a true mastermind group business owners can plan and strategize about the future freely and without hesitation. Even with the best executive team it is difficult to do this.  Let’s assume that there is a real need to discuss whether or not it makes sense to continue with the business.  There is no way that this discussion can occur candidly with current employees. Even if the business owner decides not to shut down operations most employees involved in such a discussion would be affected by the topic,

In comparison, these and other sensitive talks can occur frankly and openly with other business owners who understand what it is like to make those types of decisions and understand the need for confidentiality.

Key to having a good advisory board is to have a diverse group of business owners who bring varying degrees of experience and insight.  For example, most innovation comes from the fringes of an organization and not necessarily from the experts.  The reason is that at times being too involved in our own business makes us blind to opportunities that may be sitting right under our noses. Someone not involved or invested in our business will be better able to point it out to our benefit.

As we said above, these days having access to a true mastermind group is urgent to being able to not only survive, but thrive in today’s business environment.