If you’ve just started or have already created a venture, you definitely know that starting and growing a company is an endeavor! It can be daunting and complications are sure to arise – quickly and often.
The reality is, as a solopreneur or partnership, it can be lonely running a company.
But to truly grow your company, an advisory board (AB) is essential.
Statistically speaking, every new business has an 85% chance of failing within its first year. But plenty of businesses buck that trend. And those that do succeed, tend to have one thing in common: an advisory board (AB).
A board serves as a key avenue for decision-making, strategizing, and planning. Ultimately, one can help you and your company better reach revenue goals and objectives—and reach them faster.
TOP 4 BENEFITS OF AN ADVISORY BOARD
Some common benefits of an AB include:
1. Checks and balances: Especially during your company’s founding years, a board can assist in keeping goals in check and holding all the players (shareholders and managers) accountable for meeting those goals. Establishing a system of checks and balances in the beginning creates a solid foundation from which to grow your company. Investors and buyers will notice and appreciate the inherent infrastructure.
2. Backup and support: A board also helps hold you accountable and can defray the isolation of running a business by yourself or with another partner.
3. Dispute resolution: Disagreements in business are inevitable. Trust us on this. A board can help resolve deadlocks amongst members/shareholders, and internal disputes can be sent to the board before progressing to mediation and/or arbitration.
4. Public relations: Each board member is a referral source and spokesperson for your company, running ongoing PR campaigns that can prove more valuable than any advertisement.
Your advisory board should be customized to your business based on your industry, your company’s strengths and weaknesses, and your goals.
Next: How to set up an Advisory Board