Casual Articles - Business

A Great Way to Advertise
One of the key essentials when it comes to making you and your business successful is advertising.Unfortunately most of us cannot afford to advertise during the super bowl with commercials, or place digital signs along Times Square.Beyond the mailers and business cards, there is another way to get your name and product circulating among the masses.The best part of it is, it will cost you next to nothing, and your customer will be doing all of the work for you.A personal story . . .When I was in the mortgage business, I found out by accident one of the best ways to advertise myself and my business.I have always found it to be in good practice to show my appreciation to my customers by sending them a token of my appreciation by sending them a thank you gesture of some kind, once the loan was closed.As time went on, and I began to make a little more money, I had a few extra bucks to spend on my high end customers to show them my appreciation for doing business with me.Not that I was spending a fortune on my customers, just a few extra dollars on every loan closing, it only seemed fair.Then something extraordinary happened.I had a couple who had just settled on their first home. Around the time that they had just moved into their new home, I sent them both a gift basket to their respected places of employment.When the gift baskets arrived, they were thrilled to death. Of course everyone in their office was curious and wanted to know where the gift basket c

rship.

Ask for recommendations. Solicit recommendations from the experts you speak with that cannot serve on your board, of collogues of theirs that they feel would be a good fit for your needs. Begin networking with your attorney, accountant and other professional advisors. Once you have successfully recruited an advisor, he or she can often lead you to another good candidate.

Find your candidates motivation. Most of your candidates are not going to be motivated by money alone. In fact, if money is their primary reason for joining your board, they may not be what you are looking for. The most effective board members are motivated by the challenge and intellectual stimulation of building successful companies. They serve because they are already high achievers and enjoy the challenge.

Have variety in your board. Try to include experts and successful entrepreneurs from several different disciplines. Often board members who are successful marketers, CEOs and business owners from different industries can bring a fresh perspective to your business. These individuals can often help you incorporate best practices from other industries, into your own industry, creating revolutionary changes and opportunities.

Look for a proven track record
Volunteer at Your Local Public Access TV Station to Promote Your Nonprofit Organization
If you have a favorite charity or nonprofit organization that promotes a cause dear to your heart, you might want to consider getting involved as a volunteer producer for your local public access TV station.Public Access TV for decades has offered training and equipment that allows nonprofit organizations and individuals to create programming to be aired on local cable channels. Sponsored and funded by the cable TV industry, these public access channels offer volunteers training in how to operate cameras, lights, and editing and graphics equipment, as well as how to produce programming, and then turn their volunteer producers loose, with free access to the equipment, to produce their own shows.This arrangement offers a valuable opportunity to communicate with local citizens about serious issues. Are you an environmentalist? Consider creating a program that covers one or more of the most serious environmental problems facing your area. Concerned about access to social service programs? Do an overview of the many governmental and non-governmental social service organizations in your region that offer assistance to people in need. Interested in the local political scene? Offer to interview all candidates for upcoming local and regional offices, asking them questions relevant to the issues they will be facing if elected.Public Access TV is a valuable resource to the communities it serves, and offers a powerful tool for you, the concerned citizen, to highlight y
In today’s rapidly changing and highly competitive markets, many privately held companies are creating outside advisory boards to give owners and CEOs fresh, knowledgeable advice.

Even for small businesses, setting up an advisory board can give you a significant advantage over competitors that are relying solely on internal talent. An experienced and well-connected board of advisors can help your business grow and prosper in ways you’ve never imagined.

What is a Board of Advisors?
An advisory board is an outside group that is informally organized to provide business owners and corporate leaders with support, advice and assistance. While formal boards of directors have legally defined responsibilities and fiduciary duties, advisory boards have no formal power or binding legal authority. They serve at the pleasure of the business owner or CEO.

Benefits of an Advisory Board
There are several advantages that companies with advisory boards have over their competition. A board offers your business:

An unbiased outside perspective.

Increased corporate accountability and discipline.

Enhanced CEO and management effectiveness.

Greater credibility with investors, vendors and customers.

Help in avoiding costly mistakes.

Rounding out skills and expertise lacking in current management team.

A sounding board for evaluating new business ideas and opportunities.

Enhanced community and public relations.

Improved marketing results and effectiveness.

Strategic planning assistance and input.

Centers of influence for networking introductions.

Crisis and transition leadership in the event of the death or resignation of the CEO.

Help anticipating market changes and trends.

Steps to Creating an Effective Board of Advisors:

Analyze the strength and weaknesses of your current management team.
Look for critical areas of expertise and knowledge that your company could use help with such as marketing, legal, finance, eCommerce, and research and development or information technology. If your company is planning on going public within the next few years, seek out advisors who have successfully taken companies down that path.

Set clear, written goals and objectives for your board of advisors.
Getting maximum value from a board of advisors begins with clear objectives and goals. Board members must know why they have been asked to serve and what is expected of them.

Before establishing the board, the CEO and senior managers should sit down and ask some of the following questions:

1. What are the main areas we need advice and guidance in?
2. What specifically do we need the board members to do for us?
3. Who are a few potential candidates for board membership?
4. How do we avoid giving away too much control to outsiders?
5. What will be the powers and limitations of the board?
6. What will setting up the board cost initially? Annually? Will it be worth the cost?

Determine the size and structure of your board.
Advisory boards range in size from two members to over thirty. The right size depends on many factors, such as your company’s size, complexity, stage of development and individual skills needed. My experience and research has found that for most small to mid-sized, growing companies or start-ups, a 5 to 7 member advisory board is an ideal size. Smaller firms can start with just one or two members and add new members as they grow.

Recruiting Candidates
Determining whom you invite to join your board is one of the most critical decisions in setting up a board of advisors. Often a business owner’s first instinct is to ask friends, family members or professional advisors to sit on their board. This is usually a mistake. Unless your friend or family member is a recognized authority in an area of expertise lacking by your management team or a highly successful entrepreneur, they are probably not the wisest choice.

Another reason to avoid asking family or friends to join your board is lack of objectivity. Often advice from a friend, family member or management insider is sugar coated to protect relationships. An outside advisor can give you a much more objective and honest assessment of the situation.

Using professional advisors such as your lawyer, banker or accountant as board members has it’s own pitfalls. These advisors are already working for you and may not be as objective as you need, due to having an interest in generating future business from your company.

Some critical action steps for recruiting a dynamite board of advisors are:

Develop a candidate profile. After you have determined the areas of expertise your company is in need of, create a profile of candidates that successfully fit these needs. Take care to address knowledge and skills that your company will need to meet projected growth and future challenges.

Seek out experts. Search online and offline for experts and proven leaders that meet your candidate profiles. Contact them and begin discussions about possible board membership.

Ask for recommendations. Solicit recommendations from the experts you speak with that cannot serve on your board, of collogues of theirs that they feel would be a good fit for your needs. Begin networking with your attorney, accountant and other professional advisors. Once you have successfully recruited an advisor, he or she can often lead you to another good candidate.

Find your candidates motivation. Most of your candidates are not going to be motivated by money alone. In fact, if money is their primary reason for joining your board, they may not be what you are looking for. The most effective board members are motivated by the challenge and intellectual stimulation of building successful companies. They serve because they are already high achievers and enjoy the challenge.

Have variety in your board. Try to include experts and successful entrepreneurs from several different disciplines. Often board members who are successful marketers, CEOs and business owners from different industries can bring a fresh perspective to your business. These individuals can often help you incorporate best practices from other industries, into your own industry, creating revolutionary changes and opportunities.

Look for a proven track record.
Selling with Stories
Let me tell you a quick story. Perhaps you will find it relevant.In the early 1990s Fortune magazine decided to do an article on selling. The question they set out to answer was:Why were some people so good at selling while others so blatantly bad?To find out the answer the writers interviewed 24 top sales performers across a broad spectrum of fields. Among those who were interviewed were financial advisors, insurance producers, executive recruiters and a wide variety of consultants and high-value services providers. Here is what they learned.The most successful sales people sell without it ever being apparent that they are in fact, selling. There was nothing obvious or obnoxious about their presentation. No Trial Close, Ben Franklin close or Take Away closes. They sold, but they sold invisibly.Moreover the Fortune article concluded that the more you are marketing and selling high-value services the more important it is to be able to sell invisibly.So what exactly does this mean? How did the top performers go about building trust and credibility? How did they overcome often deep-seated skepticism? How did they persuade others to their point of view?The one thing in common was, they all told stories.Lots of stories. Stories that demonstrated how others had successfully achieved results by using their services. Stories that preemptively addressed objections or concerns. Stories that made it easy for others to refer them to their friends and colleagues. Stories that built cre
Rounding out skills and expertise lacking in current management team.

A sounding board for evaluating new business ideas and opportunities.

Enhanced community and public relations.

Improved marketing results and effectiveness.

Strategic planning assistance and input.

Centers of influence for networking introductions.

Crisis and transition leadership in the event of the death or resignation of the CEO.

Help anticipating market changes and trends.

Steps to Creating an Effective Board of Advisors:

Analyze the strength and weaknesses of your current management team.
Look for critical areas of expertise and knowledge that your company could use help with such as marketing, legal, finance, eCommerce, and research and development or information technology. If your company is planning on going public within the next few years, seek out advisors who have successfully taken companies down that path.

Set clear, written goals and objectives for your board of advisors.
Getting maximum value from a board of advisors begins with clear objectives and goals. Board members must know why they have been asked to serve and what is expected of them.

Before establishing the board, the CEO and senior managers should sit down and ask some of the following questions:

1. What are the main areas we need advice and guidance in?
2. What specifically do we need the board members to do for us?
3. Who are a few potential candidates for board membership?
4. How do we avoid giving away too much control to outsiders?
5. What will be the powers and limitations of the board?
6. What will setting up the board cost initially? Annually? Will it be worth the cost?

Determine the size and structure of your board.
Advisory boards range in size from two members to over thirty. The right size depends on many factors, such as your company’s size, complexity, stage of development and individual skills needed. My experience and research has found that for most small to mid-sized, growing companies or start-ups, a 5 to 7 member advisory board is an ideal size. Smaller firms can start with just one or two members and add new members as they grow.

Recruiting Candidates
Determining whom you invite to join your board is one of the most critical decisions in setting up a board of advisors. Often a business owner’s first instinct is to ask friends, family members or professional advisors to sit on their board. This is usually a mistake. Unless your friend or family member is a recognized authority in an area of expertise lacking by your management team or a highly successful entrepreneur, they are probably not the wisest choice.

Another reason to avoid asking family or friends to join your board is lack of objectivity. Often advice from a friend, family member or management insider is sugar coated to protect relationships. An outside advisor can give you a much more objective and honest assessment of the situation.

Using professional advisors such as your lawyer, banker or accountant as board members has it’s own pitfalls. These advisors are already working for you and may not be as objective as you need, due to having an interest in generating future business from your company.

Some critical action steps for recruiting a dynamite board of advisors are:

Develop a candidate profile. After you have determined the areas of expertise your company is in need of, create a profile of candidates that successfully fit these needs. Take care to address knowledge and skills that your company will need to meet projected growth and future challenges.

Seek out experts. Search online and offline for experts and proven leaders that meet your candidate profiles. Contact them and begin discussions about possible board membership.

Ask for recommendations. Solicit recommendations from the experts you speak with that cannot serve on your board, of collogues of theirs that they feel would be a good fit for your needs. Begin networking with your attorney, accountant and other professional advisors. Once you have successfully recruited an advisor, he or she can often lead you to another good candidate.

Find your candidates motivation. Most of your candidates are not going to be motivated by money alone. In fact, if money is their primary reason for joining your board, they may not be what you are looking for. The most effective board members are motivated by the challenge and intellectual stimulation of building successful companies. They serve because they are already high achievers and enjoy the challenge.

Have variety in your board. Try to include experts and successful entrepreneurs from several different disciplines. Often board members who are successful marketers, CEOs and business owners from different industries can bring a fresh perspective to your business. These individuals can often help you incorporate best practices from other industries, into your own industry, creating revolutionary changes and opportunities.

Look for a proven track record
How to Think Like an Entrepreneur
Creating your own wealth is easier than you think! Having the right mindset is key. The definition of an entrepreneur is someone who doesn't just run a business, they live their business: willing to take risks, and willing to do the work. There are a few guidelines to help you maximize your success as an entrepreneur:1. VISION - DREAM BIG! Be a visionary! An entrepreneur must have Eyes of Faith vs. Human Eyes. Human eyes see what is - Eyes of Faith see what can be. Visionaries can see through time and see the future.2. BELIEVE IN YOURSELF You have no limits to what you can do. Have the courage to re-invent yourself as greater than you ever imagined.3. STRICT WORK ETHIC Consistency and focused effort will produce results. You must make committed decisions. Typically, you won't make money instantly - it will take time to build your wealth - so being consistent is key!4. THINK OUTSIDE THE BOX! Ingenuity is what fuels progress and wealth. If people aren't laughing at your vision, your goals aren't big enough. Take the lid off!5. FOCUS 80% of your time should be invested on activities that will directly make you money6. OVERCOMING OBSTACLES Challenges are inevitable. Train your mind to welcome challenges. It breeds personal growth, strength of character, and allows you to remain flexible.7. FAILING FORWARD The only way to master every aspect of the business is to make mistakes!8. RESEARCH Do your homework on your industry. Position yourse
senior managers should sit down and ask some of the following questions:

1. What are the main areas we need advice and guidance in?
2. What specifically do we need the board members to do for us?
3. Who are a few potential candidates for board membership?
4. How do we avoid giving away too much control to outsiders?
5. What will be the powers and limitations of the board?
6. What will setting up the board cost initially? Annually? Will it be worth the cost?

Determine the size and structure of your board.
Advisory boards range in size from two members to over thirty. The right size depends on many factors, such as your company’s size, complexity, stage of development and individual skills needed. My experience and research has found that for most small to mid-sized, growing companies or start-ups, a 5 to 7 member advisory board is an ideal size. Smaller firms can start with just one or two members and add new members as they grow.

Recruiting Candidates
Determining whom you invite to join your board is one of the most critical decisions in setting up a board of advisors. Often a business owner’s first instinct is to ask friends, family members or professional advisors to sit on their board. This is usually a mistake. Unless your friend or family member is a recognized authority in an area of expertise lacking by your management team or a highly successful entrepreneur, they are probably not the wisest choice.

Another reason to avoid asking family or friends to join your board is lack of objectivity. Often advice from a friend, family member or management insider is sugar coated to protect relationships. An outside advisor can give you a much more objective and honest assessment of the situation.

Using professional advisors such as your lawyer, banker or accountant as board members has it’s own pitfalls. These advisors are already working for you and may not be as objective as you need, due to having an interest in generating future business from your company.

Some critical action steps for recruiting a dynamite board of advisors are:

Develop a candidate profile. After you have determined the areas of expertise your company is in need of, create a profile of candidates that successfully fit these needs. Take care to address knowledge and skills that your company will need to meet projected growth and future challenges.

Seek out experts. Search online and offline for experts and proven leaders that meet your candidate profiles. Contact them and begin discussions about possible board membership.

Ask for recommendations. Solicit recommendations from the experts you speak with that cannot serve on your board, of collogues of theirs that they feel would be a good fit for your needs. Begin networking with your attorney, accountant and other professional advisors. Once you have successfully recruited an advisor, he or she can often lead you to another good candidate.

Find your candidates motivation. Most of your candidates are not going to be motivated by money alone. In fact, if money is their primary reason for joining your board, they may not be what you are looking for. The most effective board members are motivated by the challenge and intellectual stimulation of building successful companies. They serve because they are already high achievers and enjoy the challenge.

Have variety in your board. Try to include experts and successful entrepreneurs from several different disciplines. Often board members who are successful marketers, CEOs and business owners from different industries can bring a fresh perspective to your business. These individuals can often help you incorporate best practices from other industries, into your own industry, creating revolutionary changes and opportunities.

Look for a proven track record
If Life Gives You Lemons, Pay for Them When You Can
Okay, I wasn’t really buying lemons. I had just finished a round of golf and had stopped off at a produce stand for some fresh fruit and veggies to take home.I made my selections and was in line checking out. When the total was rung up, I realized that I was several dollars short. Usually, I pretty much know what I have for funds in my pocket, but since I was only going to the golf course, I had only made sure I had enough to cover my fees. Buying produce had not been on my mind that morning; playing tournament golf was. Now, it looked like both images would be crushed.When I saw that I didn’t have enough money, I decided to pay by check . . . ah, but I had only gone out to golf and hadn’t brought my checkbook either. The next thing was to put some items back. The manager spoke up, “Pay later.” I looked up and said, “What?” He said, again, “Just stop by your next time out here, and pay later.” I looked at him for a second and he said, “You’re good for it, aren’t you?” I said, “Yes, of course.” He said, “Well, there you are.” The conversation and the transaction were over. I didn’t sign an I.O.U. I didn’t make any other promises. I didn’t have to swear that I would return. I just took my produce without paying and went home.Did I return and pay? Yes, of course. Did I tell others about this little scenario? Yes, of course. Did the manager provide great customer service beyond the norm? Yes, well beyond what most people would expect.What actually was the cost to the produce stand? Originally, it cost t
member is a recognized authority in an area of expertise lacking by your management team or a highly successful entrepreneur, they are probably not the wisest choice.

Another reason to avoid asking family or friends to join your board is lack of objectivity. Often advice from a friend, family member or management insider is sugar coated to protect relationships. An outside advisor can give you a much more objective and honest assessment of the situation.

Using professional advisors such as your lawyer, banker or accountant as board members has it’s own pitfalls. These advisors are already working for you and may not be as objective as you need, due to having an interest in generating future business from your company.

Some critical action steps for recruiting a dynamite board of advisors are:

Develop a candidate profile. After you have determined the areas of expertise your company is in need of, create a profile of candidates that successfully fit these needs. Take care to address knowledge and skills that your company will need to meet projected growth and future challenges.

Seek out experts. Search online and offline for experts and proven leaders that meet your candidate profiles. Contact them and begin discussions about possible board membership.

Ask for recommendations. Solicit recommendations from the experts you speak with that cannot serve on your board, of collogues of theirs that they feel would be a good fit for your needs. Begin networking with your attorney, accountant and other professional advisors. Once you have successfully recruited an advisor, he or she can often lead you to another good candidate.

Find your candidates motivation. Most of your candidates are not going to be motivated by money alone. In fact, if money is their primary reason for joining your board, they may not be what you are looking for. The most effective board members are motivated by the challenge and intellectual stimulation of building successful companies. They serve because they are already high achievers and enjoy the challenge.

Have variety in your board. Try to include experts and successful entrepreneurs from several different disciplines. Often board members who are successful marketers, CEOs and business owners from different industries can bring a fresh perspective to your business. These individuals can often help you incorporate best practices from other industries, into your own industry, creating revolutionary changes and opportunities.

Look for a proven track record
Change Management; Two Women CEOs Sacked at HP and Hillary Clinton in the White House?
So far in the past two years now we have seen a rocky road at HP. First Carle Fiorina CEO of HP was sacked after her comments about accountants and lawyers at the Davos Convention and the messy Compaq Merger. But now we have Mrs. Dunn the CEO of HP in 2006 being sacked for something she did not do, as a private investigation firm searched phone records of the board of director members to find out who was leaking information to the press about the companies strategy and future.Yes, they caught the bad apple, but instead of ousting him for the loss of the shareholders equity, they instead are getting rid of the CEO Mrs. Dunn, who just happened to say in an interview with the press that if the board wishes me to resign I will. Fine they said, there is our scapegoat, see ya. Mrs. Dunn never put up a fight, even as the board and the mass media hysteria over the event had the FBI running in to seize documents and raiding the corporation.Women must be strong leaders and if these top corporate titan women cannot run a company with a half million people, then will some voters ask how Hillary Clinton expects to run an entire nation of 330 million, including all the illegal aliens? What happens if a woman president finds the fire too hot and resigns?Now change management in the Oval Office would be much more serious than this. Perhaps we should immediately draw parallels and reconsider Hillary Clinton. She seems to have the same political correctness displacement as these top titan CEOs. Consider all this in 2006.
rship.

Ask for recommendations. Solicit recommendations from the experts you speak with that cannot serve on your board, of collogues of theirs that they feel would be a good fit for your needs. Begin networking with your attorney, accountant and other professional advisors. Once you have successfully recruited an advisor, he or she can often lead you to another good candidate.

Find your candidates motivation. Most of your candidates are not going to be motivated by money alone. In fact, if money is their primary reason for joining your board, they may not be what you are looking for. The most effective board members are motivated by the challenge and intellectual stimulation of building successful companies. They serve because they are already high achievers and enjoy the challenge.

Have variety in your board. Try to include experts and successful entrepreneurs from several different disciplines. Often board members who are successful marketers, CEOs and business owners from different industries can bring a fresh perspective to your business. These individuals can often help you incorporate best practices from other industries, into your own industry, creating revolutionary changes and opportunities.

Look for a proven track record. Find the leaders in their field. The best board candidates are successful CEOs, business owners, professionals, university professors and consultants who have achieved success in their own businesses and careers.

Clearly communicate your goals and objectives. Invest time in talking to and meeting with potential members. Communicate to them what your goals and objectives are. Let them know that you are not looking for “yes men” and that you want advisors who will challenge you and hold you accountable for your businesses growth.

Board Compensation
Board members expect and deserve to be compensated for their time, efforts and advice.
Typical advisory board compensation includes a stipend from $5,000 to $25,000 per member, per year. Some companies pay their board members per meeting, with payment ranging from $500 to $3,000 per meeting, with a monthly retainer of $500 to $2,500. Companies should also cover transportation, meals and lodging for members when attending meetings.

Most successful boards also give or require members to buy stock or some form of equity in the company. This gives the board members equity participation and a vested interest in the growth of the company.

Pitfalls to Avoid
Some potential problem areas to avoid when setting up or working with your advisory board are:

Members missing meetings. Because board members are usually running successful businesses of their own, they may not always be available for every meeting. However, board members should be made aware that attendance of board meetings is important and expected. If a member is chronically absent, the value of their membership on the board should be reviewed.

Insecurity of senior managers. Some company insiders may feel intimidated or threatened by the involvement of outsiders. The CEO or owner must make every effort to communicate to his staff the benefits and importance of having a board of advisors.

Incompatible personalities. This is a challenging situation, because most members of your board will be strong willed, achiever types, who have gotten where they are by taking charge. Many will have strong convictions about their opinions and may find it hard to defer the leadership of the meetings to the CEO. You must determine when a member’s personality is “too strong” and becoming disruptive.

Excessive number of board members. Because of their strong personalities, if you have too many members on your board, the more assertive members often dominate the debates, depriving you of the contributions the quieter members may have made.

Lack of CEO communication. Withholding company information or not regularly communicating with the members of your board of advisors destroys trust and effectiveness. Regular communication between meetings is essential to maintaining an effective board.
Inadequate compensation. As I mentioned, you do not want compensation to be the determining factor in a candidates membership on your advisory board, however successful individuals of the caliber you seek expect to be fairly compensated for their time and knowledge.

Keys to Board Effectiveness

If you build it, use it. Owners and CEOs who invest the time and money in creating a board should be committed to soliciting and using its advice on important issues and decisions.

Value their input, even when they disagree with what you want to do. Sometimes a board is at it’s most valuable when it recommends against a course of action the CEO wants to take. If you recruit a good board, often they have already been down the path you are on, and their experience (and past failures) can help you to avoid costly mistakes.

Communicate with your advisors. Keep the members of your board informed about what is happening in your company and industry. Counsel with individual members on the phone at least monthly and send them information well in advance of your meetings, to help them prepare and keep the meetings productive.

Hold regular meetings. Most boards meet once per quarter. However, boards should meet more often during times of rapid growth or if company needs merit additional oversight and guidance.

Have an objective for each meeting. Your board members are busy people and their time is valuable. Make the most out of your meetings with them, by having a clear agenda and objectives for each meeting. Make sure to cover the most important items of business first, in case the discussions take longer than planned or some members have to leave early.

Annual assessment of board performance.
Periodically assessing the board’s effectiveness is a critical factor in ensuring a good return on investment. Each year the board should set performance goals and define their criteria for success. At the end of the year the CEO and the board should assess it’s performance, compared to its goals and criteria for success.

Over 80 percent of all private companies are operating without a board of advisors or board of directors. Odds are your competitors do not have one. Beca

Tags

Links

Casual Articles - How to Develop a Successful Board of Advisors (...and Why You Should!)

Related Articles: