Discover the benefits an advisory board can bring to a business


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Discover the benefits an advisory board can bring to a business

If you own or know of a business that is experiencing or has the potential for high growth, one of the most worthwhile things you should do is look at starting an advisory board.  Growing a business is challenging work, so find out how you can benefit from drawing on experience, perspectives and knowledge that enhance your own. 

An advisory board consists of a group of advisers that are strongly dedicated to the success of the business.  They can not only provide a platform to test and develop your ideas, but can potentially open doors to access important resources and capabilities.

An article from the Harvard Business Review, ‘Who advises the Entrepreneur? (22/10/13) , outlines that many owners, especially those in the primary stages of their business,  find the task of building an advisory board intimidating. The article also identified questions that may be raised by owners around whose strengths would complement their own and whose would counteract their weaknesses or perhaps bring insight that they may have otherwise missed. Additionally, most people who have not had direct experience with the operations of an advisory board haven’t given much thought to the potential benefit it could bring to the business.

An advisory board is a selected group of individuals that have the knowledge and skills a business owner lacks and they provide their time to assist, guide, challenge and provide perspectives on new opportunities. The advice they provide is non-binding to the organization, as the board holds no legal or financial responsibility for the decisions a business owner makes.  This makes it rather informal in nature and provides owners and managers with a ‘safe’ space to discuss issues of major significance.

The benefits of having an Advisory Board: 

  • Utilises the knowledge and skills of advisers who possess the understanding and experience in growing and developing a business.
  • Acts as a platform to take the heat when others may not agree with the decisions of owners/management.
  • Can improve the credibility of a business in the market place.
  • Provides diversity of opinions. A good advisory board will comprise of different personalities, talents and expertise which lead to differences in opinions from different points of view.
  • Helps garner information to manage risks.
  • Helps to manage and control disputes and disagreements between family members that work together in a family business.

When would a small or medium business benefit from an Advisory board?

  • A company is undergoing a stage of rapid growth.
  • A company needs to raise necessary funds.
  • A company is facing major decisions and/or changes in direction, such as entering into new markets, introducing new products/services or expanding operations.
  • A company is experiencing specific functional and/or structural issues.
  • A company wants to build strategic business partnerships.
  • A company lacks a strong internal leadership team.

Setting up an advisory board will provide you with the necessary provisions needed to prosper.  It will also allow you, as a business owner, to access others specialised knowledge, while enhancing your own knowledge and abilities. A strong advisory board can be essential in allowing you to take your business and expanding it to the next level.  At dVT Group we have successfully set up such Boards for our clients in the past and are happy to discuss with you your individual situation and needs.

To learn more about how an advisory board can add value to your business,
call the dVT Group on 02 9633 3333.