Any large corporation has a Board of Directors. Their job is to manage the management and to represent the stockholders’ interests. The Board is composed of allegedly singular people with credentials, experience, and expertise. Considering their light workload, they are usually paid quite well. Because their advice is sometimes ignored, those Boards can appear to be more decoration than function.
In principle, the idea is good – even for a small business. Home-based, sole proprietor, business partner, retail merchant, or more – any small business needs advice on a regular basis. While most small business owners have advisors, they should consider formalizing the relationship.
Call it what you will
Brain trust, futures team, kitchen cabinet – call it what you will, but your business will benefit from good advice. It just makes sense to consider the direction of experts in your field. You do not have the time to be proficient in everything. While you may know how to read balance sheets with ease, you will still need an expert in taxation. Trying to be a Human Resources expert, for instance, can be a huge and expensive distraction.
Putting together a board of directors isn’t as daunting as you might think. You do not have to select nationally renowned experts with six-figure stipends requiring quarterly transportation to 5-star resorts for Board meetings. You do not need voting members or public notice. You are not even required to follow their advice or publish meeting minutes.
Council of Specialists
What you do need is a loosely functioning council of specialists. You might select a lawyer, HR consultant, realtor, tax expert, and more. Add a competitor where it makes sense, and a vendor who has an interest in your success. You want to meet as such with some regularity over drinks or dinner on your tab.
At each meeting, allow a set amount of time to brainstorm about needs and solutions. Always start the conversations by asking: “What would you do if . . .?” You can take notes if you want, but the idea is for you to listen well.
Everyone, businessperson or not, should have his/her own Board of Directors behind their life decisions. Try it for three years and see what happens. Here are a few of our favorite quotes on wisdom:
“Most people do not listen with the intent to understand; they listen with the intent to reply.” -Stephen R. Covey
“Whatever you do in life, surround yourself with smart people who’ll argue with you.” -John Wooden
“Most of the successful people I’ve known are the ones who do more listening than talking.” -Bernard Baruch
“If you make listening and observation your occupation, you will gain much more than you can by talk.” -Robert Baden-Powell