Key Idea #1: The independent streak most business owners have keeps them from asking for advice or help.

We just keep trying things that don't work until we find something that does work.

Topic for discussion: Why would a person spend time, money, and energy on an idea without seeking advice?

Possible answers: Some small business owners think their idea is the only idea and because it came to them, it must be a good idea! Also, some of the world's wealthiest entreprenuers got that way by not listening to anyone. Richard Thalmeir, the founder of Sharper Image, says he has always followed his instincts and jumped on opportunities when he saw them. As a lawyer in a running club back in the 70s, he wanted a watch to time his workouts. When he found the right watch for himself, he figured others would want the watch too. He took out a full page ad in Runner's World and did $350,000 in sales from the one ad. His Sharper Image catalog was born out of this first huge success.

Richard had no business training and was practicing law, but he thought he had a good idea; he was right! Had he asked the advice of merchants and others in the catalog business, or even the editors of Runner's World, he probably would have been discouraged by the stories of failure they would pass on to him.

Key Idea #2 : Small business owners need a group of trusted peers.

However, most small business owners don't have the funds to pay a board of directors, nor do they want to put a formal group into place.

Topic for discussion: What is the difference between a board of advisors and a board of directors?

Possible answers: A board of directors is required by a corporation and the members of the board of directors have financial responsibilities and liablities attached to the duties. Also, the members of the board of directors are paid a retainer and required to attend meetings. A board of advisors could almost be viewed as a group of friends who get together to help the entreprenuer think through problems and offer suggestions. The advisors are usually not paid, but are given gifts and nice meals that are served before or after meetings.

Key Idea #3 : A group of peers will better help solve problems than will attorneys, CPAs or other types of paid professionals

Topic for discussion: Why is peer advice better than that given by the people who get paid to give advice?

Possible answer: The group you see from Bend is made up of business owners who are in retail or service companies. Take the case of employee issues. Law firms don't hire entry-level minimum wage workers as do many retail stores. How could your attorney guide you when it comes to the question of keeping the store staffed when the law office isn't even open on the week-ends? The attorney can't possibly know how to hire and staff a retail operation. If you find peers who have been running a business for more than five years, they have already lived through what you are now experiencing. To form your own board of adviors:

1. Find between 10 and 12 people who are business owners who are interested in serving as a board of advisors for a group of peers. The ideal group size for a meeting is seven. So, if you have 10-12, you are more likely to have no fewer than seven at any one meeting.

2. Find a convenient location and meet at the same time every month. In Bend they meet on Thursday afternnoon from 4-7.

3. Each month, one person's critical issue is discussed in length as you saw demonstrated. However, if anyone has an emergency problem, the group will address it.

4. Each meeting starts with a report from the person who got the advice last month. He or she is accountable to the group for action taken on the advice given.

5. Everything discussed in the meeting is confidential. The board of advisors works for a business owner because all businesses are generic in that every business owner deals with the product quality, people issues, and systems. When a group of small business owners are put together, they can and will solve each other's problems.

Topic for discussion: How did Christina Acosta's group help her?

Possible answers: Christina had a great idea for a product which she could place in retail stores to increase her sales. The product is a display box which shows the customer how to use handpainted tiles in their decorating. The group thought Christina's idea was so good that she was going to be stuck painting the same tiles over and over. Because of her group's suggestion, she now has a company manufacturing her tiles rather than painting each one individually herself.

Questions from Jim for further study.