Two questions that I get asked frequently by new entrepreneurs are “What is an advisory team?” and “Who advises you?” The topics usually come up in the course of business planning sessions where I ask entrepreneurs to list individuals that they would like to have on their dream team. This is an important part of any business plan and strengthens companies for a number of reasons.
- Insight. First, there is a proverb that says “Wisdom is found in a multitude of counsel.” This suggests that it makes good sense to seek the advice of others who can maturely guide you in getting the results that you want to achieve. Advisors possess wisdom that comes from having insight into a particular area which will help you plan and implement successful business strategies.
- Accountability. Next, when it comes to advice whose is the first that you normally trust? It’s probably your own, right? After all, if you cannot trust your own instincts, then who can you trust? But listening solely to your own opinions at all times produces biased results. Because humans are creatures of habit they tend to do things that are within their comfort zone. That is not the way to build a sustainable business. Instead aim to create a team of advisors that will help you push the limits, come up with new ideas, and hold you accountable for reaching them.
- Diversification. Finally, advisory teams are there to support your success by providing their expertise. Build a team from diverse industries so that you receive a holistic view of business The areas that you want to cover are law, accounting, banking, insurance, finance, marketing, and management. Look for someone with experience in each of the following professions and you will have a solid foundation to create a sustainable business.
If you are unsure where to find the ideal people to fill advisory vacancies I suggest starting by contacting other business owners that you know and trust. If you network regularly in small business forums pay attention to what’s being said and by whom. Many times you can glean great information just by listening to the wisdom that’s right at your finger tips. You can also speak with a business banker. Since they work with professionals on a regular basis they can refer you to reputable resources. Most will have contacts that you can look into to see if they are a good fit for your company. Finally, if none of these sources produce any leads remember to try out your local Chamber of Commerce where a host of industry specific professionals meet and network.
