Posts Tagged ‘expectations’

It’s Lonely At The Top …

Tuesday, August 23rd, 2016

A Business Advisory Board Can Help

Small Business Advisory Board | Ohio CPA Firm

Excellent leaders seek out excellent advisors and the best advisors for your business are those who fill knowledge gaps within your company. They will also not be afraid to share their opinions and offer differing perspectives. You may not always like what they have to say, but you will be a better leader for hearing it.

It’s not uncommon for small business owners or CEO’s to feel like there is no one they can turn for help, advice or validation.

Fortunately, a business advisory board can help. Business leaders who consult an advisory board not only gain camaraderie, they gain ready access to experts in a variety of fields, such as marketing, sales, financing, and others. Not to mention a valuable multi-perspective approach to your day-to-day managerial duties.

Read Also: 5 Best Practices For Taking Your Business To The Next Level

Business Success Is A Team Effort

Not ready to commit to utilizing a business advisory board in all aspects of your business? That’s fine. Start small instead. Many successful boards are originally formed with a very specific goal in mind – such as the implementation of a new strategic plan.

And you don’t always have to look exclusively outside of your business for help. Consider tapping members of your management team for specific organizational reports. Each advisory board meeting could begin with members of your management team providing updates on assigned areas, such as finances, operations/production, human resources, IT, and sales & marketing. This portion of the meeting will ensure that everybody is on the same page and will encourage your management team to buy into the advisory process. Later in your meeting, set aside time to speak confidentially with your advisory team. Doing so will provide everyone with the opportunity to speak candidly.

Say ‘No’ To ‘Yes-Men’

If you don’t trust the members of your advisory board, the initiative will not be effective. You need to go into advisory board meetings ready and willing to share sensitive information about the business, as well as personal information about yourself. If you don’t trust your board, you are unlikely to tell them everything they need to know to provide you with the best advice possible. Your board should consist of the following experts:

  • An attorney
  • An accountant
  • A banker
  • Experts in Marketing, HR and/or IT
  • Other successful entrepreneurs from other industries
  • Potential customers

Optimally, you should try to keep the group small and close-knit. More than six advisors on your board are not recommended as the productivity of the team is likely to take a hit.

Know Your Limitations

Excellent leaders seek out excellent advisors and the best advisors for your business are those who fill knowledge gaps within your company. They will also not be afraid to share their opinions and offer differing perspectives. You may not always like what they have to say, but you will be a better leader for hearing it. You can’t do everything and you can’t be an expert on every topic or every issue that comes across your desk. But an advisory team will help you get there.

Set Expectations

Even though advisory boards are more informal than boards of directors, it’s important to set expectations and ground rules on any time expectations, responsibilities and duration of service. Consider a written document outlining your board’s responsibilities and logistics, such as meeting frequency, expected time commitment and compensation, if any. Quarterly meetings as a group with individual meetings as needs arise is a good framework.

Remember, your business advisory board does not have authority to make business decisions; it will offer advice that you can either take or dismiss. Speak frankly about your business goals are and explain that you don’t expect them to take on an active management role or assume any liability for your company or for the advice they offer. Providing written indemnification for each participant is appropriate.

The advisory board experience should be interesting and beneficial for all involved. Being on your board will expose members to new ideas and perspectives, and also offers mentoring, networking and social opportunities that make the experience worthwhile. At the very least, you should cover any expenses members incur to attend meetings, and provide meals when you get together. You could also consider a per-meeting fee that might range from a few hundred to a few thousand dollars, depending on commitment.

Email Rea & Associates to learn more ways a business advisory board can help you become a better business leader.

By Chris Roush, CPA (Millersburg office)

Are you looking for more insight into the effectiveness of a business advisory board? Check out these articles.

Getting By With A Little Help From Your Friends

Why It’s Important To Have A Good Banker As Part Of Your Business Advisory Team

This Is An Intervention – Step Away From Your Business

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How Are You Different From The Competition?

Wednesday, June 8th, 2016
Competitive Advantage - Ohio CPA Firm

Every time I climb into my stylist’s chair my hair is trimmed – regardless of its condition. This helps maintain a fresh look while preventing additional breakage. It also gives her an opportunity to assess the state of my hair and make recommendations to help keep it looking its best! From helping a client monitor their cash flow to updating a buy-sell agreement, a lot of preventive maintenance can be done at a regular meeting with your financial advisor, too. You never know when a simple lunch meeting could reveal an underlying problem that, if left to fester, could be damaging to your business.

Superior Service Doesn’t Have To Be Hairy Business

You have the opportunity to go above and beyond the call of duty every time you engage with a client. And don’t think that your superior work and insight will go unnoticed! Before long, you will find that they will go out of their way in search of your insight and advice. Regardless of your profession, the potential is there for you to become a trusted advisor. We strive to reach this standard here at Rea, but I know of others who I would consider to be trusted advisors in a variety of other professions.

My Hair Stylist Is A Trusted Advisor

After attending my last meeting of the day, I gathered my things, left the conference room, walked to my car and sat down in the driver’s seat ready to depart for my regularly scheduled hair appointment. As I turned the engine, I started thinking the meeting I just left, during which we spent a lot of time discussing the succession plan of an existing client and what we could do to deliver the best experience (and outcome) possible. Then my thoughts drifted to the task at hand – my hair appointment and how I truly consider Aaren, my stylist, to be a trusted advisor in my life. Here’s why:

Superior Efficiency

Before busy season starts (January-April in our industry) Aaren will style my hair in a way that helps facilitate a faster dry time each morning. Being the numbers addict I am I have estimated that I can save about 6.5 hours if I opt for a shorter hairstyle. This is similar to how Rea is dedicated to delivering superior efficiency. For example, we have integrated Lean Six Sigma into our culture as a means to deliver efficient, cost effective service. We use it. We know it works. And we have helped other businesses implement their own Lean initiatives as well.

The Best Ideas You Weren’t Expecting

Not only does Aaren understand how to encourage her clients how to care for their hair during the best of times, she’s mindful of changes that could occur as a result of environmental factors and makes recommendations accordingly. This is what happened when I told her I was going on vacation to the ocean. This seemingly casual conversation revealed an opportunity to warn me about the dangers of saltwater on hair; she recommended a product to help prevent damage while I was on vacation. The great thing about developing a relationship with a trusted advisor is that they genuinely care! Are your children gearing up for graduation? Are you eyeballing retirement? Are you looking to invest in a summer home? A trusted advisor might be able to help you seize an opportunity that you would otherwise miss.

Sound Advice In Advance

I have found that Aaren is most effective when I keep her in the loop. I let her know when I have a vacation or a wedding many months in advance. This way she can help me get the results I want without unpleasant side effects. For example, rather than dye my hair right before a major wedding that was taking place in our family, Aaren encouraged me to change the color over a six-month period. By making the changes gradually and planned out we were to prevent my hair becoming damaged due to the chemicals.

Your advisors are also most effective when they are able to get in front of an issue. For example, if a client wanted to pass their business on to the next generation, an advisor could help you identify your succession plan, help you prepare for the changeover, identify financing solutions for your own retirement and help establish a cash flow strategy for the incoming management.

Preventive Maintenance

Every time I climb into Aaren’s chair my hair is trimmed – regardless of its condition. This helps maintain a fresh look while preventing additional breakage. It also gives her an opportunity to assess the state of my hair and make recommendations to help keep it looking its best! From helping a client monitor their cash flow to updating a buy-sell agreement, a lot of preventive maintenance can be done at a regular meeting with your financial advisor, too. You never know when a simple lunch meeting could reveal an underlying problem that, if left to fester, could be damaging to your business.

When it comes to the management of my hair, Aaren is a trusted advisor. She continues to demonstrate her expertise and always goes above and beyond my expectations, which is why I will drive two hours to keep my hair appointments!

What do you do to set yourself apart from the competition? Why would a client drive two hours to buy your products or services? How can you be a trusted advisor to the clients you serve? Mike Taylor, a CPA and executive principal here at Rea, did a great job talking about the advisory role on an episode of unsuitable on Rea Radio. You can listen to the podcast below or click here to learn more about this particular episode. You can also email Rea & Associates to speak with one of our industry professionals to find out how you can take your business to the next level.

By Katie Snyder, CPA (Wooster office)

Check out these articles for additional insight into the benefits of working with a trusted advisor:

Getting By With A Little Help From Your Friends

5 Financial Secrets Of Successful Business Owners

This Is An Intervention – Step Away From Your Business

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