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Small business
owners often form their own collegial board of advisors. Opportunity Knocks is
an orangization based in Bend, Oregon. It has fourteen groups of entrepreneurs
who get together once a month to solve each other problems. Albert Black, owner
of On Target, has both a board of directors and a board of advisors.
Topic for
Discussion: How does a small business owner find advisors?
Answer: You
look around for people who have already done what you want to do and ask for
help. You can formalize this and ask three or four individuals to advice you on
a regular basis in a group setting. A board of advisors does not have any
fiduciary responsibility for your company, whereas, a formal board of directors
does. As a business owner, you will have an accountant and probably an
attorney. These people can be on your board of advisors, but, it is better to
have other successful business owners.
Albert Black put
his boards together after he spent a number of years working as a volunteer in
non-profit organizations. In these situations, he met business and community
leaders and he was able to "size them up" as to their ability to help him plan
the future course of his company.
Topic for
Discussion: Who serves on Vicky Carlson's "board of advisors?"
Answer: The
Herman Miller Dealer Council serves as a board to Vicky. This is the perfect
group for her but there may not be anything like this group that you can join.
However, you can think about finding some group that will teach and inspire
you. This type of learning is called peer-to-peer learning. According to the
Edward Lowe Foundation, "A peer network consists of a small group of chief
executives who meet regularly in a confidential, supportive environment under
the direction of a seasoned facilitator. The group typically ranges from six to
14 participants who operate noncompeting businesses." We have taped many
programs about business owners who tout the groups they depend upon for inside
information to solve sticky problems and will mention just a few of the
options.
If you are under 40
years of age, you can join Young Entrepreneur's Organization. If you are a
woman, there is the Women President's Organization. If you have about $1,000 a
month and will commit to a year's membership, you can join The Executive
Committee, better known as TEC. The web site of the Edward Lowe Foundation has
a group locator and links to articles about peer groups. As a member of a peer
group, we believe that the biggest benefit of a powerful peer group is there is
no advice given. We only tell our own stories of how we solved or failed to
solve a particular problem. This way, you are guaranteed information from the
real world.
Look for a group
that does not try to sell to each other, one that has a facilitator to keep the
discussion on track and one that does not bring in speakers.
You think about
it: Who are your advisors/mentors now? How often do you meet and how can
you more effectively tap into the power of a board of advisors/directors? Do
you feel alone at the top? Are you in a group that helps you solve problems?
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