Plain and Simple: Bright Business Insights Summer 2019 | Page 5
Excellent leaders seek out excellent advisors and the best advisors for The advisory board experience should be interesting and beneficial
your business are those who fill knowledge gaps within your company. for all involved. Being on your board will expose members to new
They will also not be afraid to share their opinions and offer differing ideas and perspectives, and also offers mentoring, networking and
perspectives. You may not always like what they have to say, but you social opportunities that make the experience worthwhile. At the
will be a better leader for hearing it. You can’t do everything and you very least, you should cover any expenses members incur to attend
can’t be an expert on every topic or every issue that comes across your meetings, and provide meals when you get together. You could also
desk. But an advisory team will help you get there. consider a per-meeting fee that might range from a few hundred to a
Set Expectations
Even though advisory boards are more informal than boards of
directors, it’s important to set expectations and ground rules on any
few thousand dollars, depending on commitment.
Feel free to give me a call if you would like to learn more about this
strategy.
time expectations, responsibilities and duration of service. Consider
a written document outlining your board’s responsibilities and
logistics, such as meeting frequency, expected time commitment and
compensation, if any. Quarterly meetings as a group, with individual
meetings as needs arise, is a good framework.
Remember, your business advisory board does not have authority
to make business decisions; it will offer advice that you can either
take or dismiss. Speak frankly about your business goals and explain
that you don’t expect them to take on an active management role or
assume any liability for your company or for the advice they offer.
Providing written indemnification for each participant is appropriate.
by: Chris
Roush, CPA
Principal
212 North Washington Street
Millersburg, OH 44654
330.521.4545
[email protected]