I’m teaching a class called "Small Business Success" at a virtual school I’m associated with.  During our conversation this week, we discussed some of the challenges facing smaller businesses. 

One of those was that management is usually the responsibility of one or two people, not a large contingent of vice presidents and others.  There’s also no Board of Directors to work on strategic planning and other issues.

During the conversation, I suggested something I’ve seen at many smaller companies and that’s a Board of Advisors. 

This is a group of people who simply advise the owner.  They have no fiduciary responsibility and don’t need to be identified to the outside world. 

Who you ask to join your board is completely up to you.  There are no requirements other than the ones you set.  You can meet as often as you like and people stay on the board as long as they want to and/or as long as you want them to.

So how do you use them? 

That depends on who you choose and how much information about the company you’re willing to share with them.  You choose the topics of conversation and they might include things like:

• Strategic planning
• How to deal with threats
• Should you expand your product line
• etc. 

Some people will pay their board members some small amount or simply take them out for dinner at a nice restaurant where you can talk. 

Some possible members are your:

• Accountant
• Attorney
• Insurance broker
• Other business owners. 

My one word of caution is don’t choose people who will tell you what you want to hear.  Get people who will challenge you and push back.

Written by Philip Cohen