When Should You Put Together an Advisory Board?

If you are at a growing point in your business, you might want to consider putting together an advisory board. So when is the time in which you should do so? One rule of thumb is that when your business is no longer a hobby, and it has become your profession. Another rule is when it is starting to go to the next level.

For example, if you are spending 10 hours a week selling items on eBay, you don't really need an advisory board. If you have started a company where you have regular employees and a payroll you have to meet, it's time to think about getting an advisory board.

Advisors can help grow business

Of course, you can informally have advisors right from the beginning. Family and friends can be good sounding boards if they have experience and knowledge. You can also pay people like accountants and tax experts to advise you on what to do ' and what not to do. Of course, there are also a variety of free and low-cost advisory experts who can help you, such as SCORE ' a national organization of retired executives who help business people.

But what happens if your business is about to go to the next level, and you would like to have an advisory board? Well, keep in mind that an advisory board is not the same as the board of directors. You don't have to listen to your advisory board, and they do not have the right to force you out, the way a board of directors conceivably could.

Advisors help with strategy

So what would you get out of an advisory board that you wouldn't get from just talking to your accountant? Well, with an advisory board you can get a variety of advice in areas that are not in your expertise. You will have people to speak strategically with to plan for the long-term, and not just pressing short-term issues.

One of the things that will tell you when it is time to create an advisory board is if you can see how your business could improve and go to the next level over the next year by doing so. Another thing is to find people who have skill sets that you don't; skill sets that you will need to take your business onward and upward. A third is to have a more formal process, with meetings where your board can meet and talk with each other, instead of just talking to your family or friends.  Good luck.

This article is an original contribution by Lisa Swan.

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