I already have it! My key tip for 2007, that is. Hands down, my tip for this year is that every business, nonprofit and organization should have an Advisory Board. In order to run a successful small business, you must know your customers. You can’t market to them, buy for them or serve them without first knowing about them. Having an Advisory Board is a great way to accomplish this. Not to mention that your Advisory Board will turn into a tremendous source of referrals and word of mouth marketing for your business because they will be educated, supportive and personally involved in your business.
Don’t believe me? I ran across this article on Jim Hopkin’s blog today that confirms my advice about having an Advisory Board of trusted advisors. This article states that independent research confirms that one of five factors shared among the most prosperous small businesses is a panel of trusted advisors.
What does your Advisory Panel look like?
First, it should NOT be considered a "Board of Directors." In essence, a Board of Directors is the team that runs publicly owned companies and privately held corporations. An advisory board doesn’t "run" your business, they only advise it. It is your prerogative to take or leave their advice (although, I would recommend taking it in most cases).
It SHOULD be composed of trusted advisors (such as an exceptional small business accountant, attorney and business consultant) as well as a targeted group of trusted, valuable customers that fit your target niche. It is common for the Advisory Board to be unpaid, but you should do something nice for them in return for their time and feedback (discounts, gifts, fine dining, etc.).
As an example, one of my clients formed an Advisory Board this year of twelve trusted clients. They attended two private events in her shop to review catalogs for future purchases and give the owner feedback on existing merchandise. Another client has an Advisory Board that meets in a retreat location twice a year with part entertainment and part systematic strategic planning for the upcoming year. Others still only correspond via e-mail with their Advisory Board and solicit frequent feedback on current issues and needs.
However you compose it, you should remember that to fail to form an advisory committee is to set yourself up to miss earning potential in the New Year. Over the Christmas holiday, take some time to consider who should be a part of your 2007 small business Advisory Board.
