Double Iron Consulting, The Role of Board Advisors in 2023

When a company expands, and the market becomes more competitive, business owners consider including an advisory board for its strategic growth.

There are differences between board advisors and the board of directors in duties, roles, and purpose. However, they provide lots of value that assists businesses in remaining on the same page for tactical success.

An advisory board provides a way for a business to collaborate with outside business professionals in a structured manner. Many organizations engage advisory boards when they desire to grow, modify their strategies or gain access to industry-specific connections or knowledge.

William Smith of Double Iron Consulting can help small businesses know when the right time is to take this next step.

The role of the board of advisors is to provide input on the decisions to be made; however, the board of directors is to provide governance and accountability on these decisions.

Before the board of directors votes on issues, members of the advisory board often provide their professional advice or opinion.

The majority of advisory boards assist organizations in getting additional insights to resolve real-life business challenges or assist businesses with gaining an edge by promoting high-quality and rigorous discussions.

The function of an advisory board is not to make these pronouncements but to provide current understanding, evaluation, and critical reasoning to boost the confidence of the company’s decision-makers.

Bill Smith: The Significance of Advisors

The larger a company gets, the more attention it will need, and the more challenges will arise.  To ensure continued growth, these issues must be accurately handled. As such, there are various reasons a board of advisors is needed for expanding companies.

Business Development

There is increased pressure to grow a company as it expands, and getting other minds working on specific aspects of the company is undoubtedly a huge benefit.

Creating a board of advisors assists the company in receiving feedback from users of the services and products. It also introduces the business to potential clients and end-users.

For instance, a company that produces disposable utensils can hire the services of a board member who is a former vice president of a multi-national chain of fast food restaurants. This is useful because he can introduce the business to the CEO of his previous job and assist in closing a deal.

As Bill Smith started Double Iron Consulting to help small businesses, he left his own family business, Royal Cup Coffee, in the hands of non-family leadership. However, he still sits on the board of Royal Cup.

Providing an Effective Backup System

It can be highly beneficial to create a board of advisors with experts who are known and regarded in their particular industries. Doing this will attract the attention of investors and cultivate a feeling of confidence since such a renowned individual has effectively stamped their approval on the company.

Putting a Board of Advisors Together

The creation of a board of advisors is a duty that is easier said than done. Nonetheless, there are valuable tips from William Smith and his team of experts at Double Iron Consulting that can be used to assist business owners in putting together the type of board that will help a business succeed.

Bill Smith has had years of experience running a business and being a member of the board for his family business, Royal Cup Coffee.

Top Tips from William Smith, Double Iron Consulting

Identify Suitable Members of the Board

Members should be more than just individuals with whom the owners are familiar. Potential members should be screened against specific standards like relevant experience in the particular industry.

Create a Board of Five Advisors or Fewer

Ideally, the number of advisory board members should be between three and five. Having over five members can transform simple brainstorming sessions into complex ones. Having too many advisors could reduce the general productivity of the board.

Focus on External Professionals for an Advisory Board Member

Ideally, the members of the board should be employed in a separate full-time position and should have an interest in growing the business as well. In addition, they should not be immediate members of the family or relatives of the business owner.  Their emotional connection to the business could interfere with its advancement.

For many companies, a board of advisors can guide businesses where they want to go. Below are some ways a board can bring value to your business.

What an Advisory Board Brings

Providing an Outside Perspective

Bringing your business an outside perspective on critical issues is among the most significant benefits a board of advisors can provide.

Advisors bring different experiences, perspectives, and opinions than your team of leaders. They can view market trends, business performance, and long-term strategies impartially.

With this perspective, you can identify problem areas and blind spots. As it relates to strategic planning, this can be invaluable.

Expanding the Network of Your Business

A board of advisors can assist in expanding your business network, which is particularly vital for small businesses and startups. Having a board of well-connected members immediately expands the contacts of your organization.

This can assist you in building or expanding your presence in applicable markets. Furthermore, board members can use connections to help with establishing strategic partners, funding, and connecting with vendors.

Supplementing and Developing Organizational Leadership

A board of advisors provides two primary leadership benefits: filling skill and expertise gaps and advancing the leadership team’s skills.

They can also help the company’s leadership build skills and become more effective. Your executive team must consistently grow and develop, and a board of advisors can provide an effective way for your leaders to receive the support and guidance they need.

Boosting Credibility with Investors, Vendors, and Clients

With a board of advisors, your business instantly achieves more credibility.  This increases based on whether the board has community leaders and industry experts among its members.  This might assist in building trust with investors and prospective investors.  It could make vendors and customers more willing to work with you.

About Double Iron Consulting

Double Iron Consulting is a small consulting firm helping family-run and small businesses grow by achieving meaningful results for their company.

William Smith has years of experience running his family business, Royal Cup Coffee. Although he still sits on the board for Royal Cup, his main focus is consulting family businesses through his firm, Double Iron Consulting.

Double Iron Consulting offers help with succession planning, leadership development, strategic growth, internal alignment, and more. To learn more about Double Iron Consulting, visit their website.