Put simply, business advisory boards are a great, but expensive, support system. If you own a small business, it might seem like Boards are part of a different, corporate world, set up and hidden away in big business’ conference rooms. This is a misconception. In fact, there are many ways that your small business can benefit from an Advisory Board.
Before we address the options available for your business, let’s draw a distinction between the two main types of Boards. A Board of Directors is a legislative requirement for many corporate business structures. This requirement is created in the Corporations Act 2001, and the behaviour of Board members is extensively governed by regulations and the company’s internal procedures. A Board of Directors has power and influence within the company and is liable should misconduct occur.
In sharp contrast, an Advisory Board has neither power nor influence within a company. They provide specialist information and guidance on issues that the owner has no personal experience or knowledge in. Advisory Boards can be relatively informal and, while it is best practice to create protocols and develop a charter, these aren’t strictly necessary.
Another industry term for an Advisory Board is a Think Tank, and that’s the best way to view the services an Advisory Board can provide. Depending on the composition of your Board, it is an opportunity to get a range of professional advice on specialist issues, like legal problems, tax questions or financial decisions and necessities within your company. An Advisory Board can help you think of the big picture in a realistic, non-biased way, and put in place a plan to get there. Click here for more information on the benefits of Advisory Boards.
Like most elements of Advisory Boards, the pricing is generally up to the business owner. Depending on who they choose to serve as advisors, whether they use a neutral chairperson, how long and often the Board meets, will all impact on the pricing. The size of the Board and the qualifications of the advisors are typically the biggest price points and can get very expensive very quickly if businesses aren’t careful.
If there is a Board of Directors rather than an Advisory Board, the pricing will be significantly higher as the directors need to be compensated for the risk that they are taking on, should they be held liable for the faults of the company.
Advivo’s Monthly Service Program (MSP) actually performs a light version of an Advisory Board. The MSP service provides a monthly review of the business financials by one of our experienced accounting team members, as well as an in-depth discussion with you to ensure you truly understand what your figures mean. With this knowledge, you’ll be equipped to identify opportunities as they arise and/or proactively discover any issues before they affect your business.
Our MSPs give you the chance to get independent third-party input into your performance as well as an opportunity to seek advice on strategies to progress towards the goals you have for your business. Sometimes, it just takes someone with a bit more distance from the day-to-day to spot challenges and to identify solutions, and that is exactly what Advivo’s MSP can offer your business.
Business Advisory Boards are an excellent way to provide peace of mind to responsible business owners. It is an opportunity to get feedback from a neutral and knowledgeable source. For an affordable and friendly alternative, contact Advivo today.