It’s no secret that running a small business is tough. But according to a report from BDC, an Advisory Board can help entrepreneurs to increase the odds of success. While only about 6% of Canadian SMEs have access to an advisory board, it appears that meeting up with this external team – even just a few times per year – can greatly improve your business’ bottom line. We believe every small to mid-sized business needs an advisory board. Here’s why:
Be More Productive
Advisory boards meet on a regular basis, keeping business owners focused on their goals. And that accountability makes a difference in terms of overall productivity. According to BDC’s report, productivity (measured by the ratio of sales to the number of employees) was 18% higher on average for the group of businesses with advisory boards than those without.
Sell More Stuff
Companies with advisory boards have access to greater knowledge, information, and opportunities through their board members. That knowledge translates into more sales. BDC reports that on average, annual sales of businesses with an advisory board were 24% higher than those of the control group during the same period.
Be More Profitable
Businesses with advisory boards also reported higher profit margins than those without, according to BDC. Advisory board members provide value across all areas of the organization, which translates into greater profitability.
Access Other Opinions
Entrepreneurs will benefit from having a sounding board to listen to new ideas, challenges, and opportunities, and the ability to learn from the experiences of their board members. This discussion of ideas offers business owners a refreshing opportunity to hear different points of view while reflecting on past decisions and planning for the future.
It’s simply not possible to be an expert in everything. An advisory board can help to offset any areas of weakness in the organization by attracting members who have a certain set of expertise that is currently missing from the business.
Look to the Future
Advisory boards keep businesses on track when it comes to achieving their objectives. In fact, advisory boards work to ensure a company has clearly defined direction, and that the organization is reaching critical milestones on the path to success.
Why don’t more SMEs have advisory boards?
Despite the overwhelming advantages, many small-medium sized businesses simply don’t take the time to set up advisory boards. That’s a problem. For already time-strapped entrepreneurs, connecting with the right people to form an external group for your growing business can be a challenge. However, the benefits certainly outweigh the time it takes to set up an advisory board. When asked if they would do it again, 80% of business leaders with advisory boards answered a resounding “yes!”
Let us help you take your business to the next level by working with you to create your dream team – an advisory board of professionals with complementary expertise and a strong track record of success. We’ll help you to build your team, and set the processes in place to continue to meet with your advisory board as you grow your business. Contact the Tyrone Matheson Group today to learn more.