It could either be a board of advisors or board of directors. Let’s focus on board of advisors (BOA or advisory board) for the purpose of this write up.
A BOA is an informal group of people, selected by business owners to give them advice and guidance from time to time. It consists of people with more experience in your industry or related field.
I know what you’re thinking: I’m barely making money and Tunde is telling me to get a board. Hian! Calm down first. Business is a game of chess, not draughts or ludo. You have to think 10 steps ahead, even as you manage day to day.
Here are 3 reasons why I believe you should consider a board, regardless of your size:
1. Credibility and trust – Selecting a team of people that are reputable, rubs off on your own image and makes people trust you more.
2. Marketing and sales – Believe it or not, a good board can also make selling easier for you, especially when you want to close large deals or get contacts of people within their network. Customers will be more comfortable to give you a cheque of N5 million for instance, if you are affiliated with experienced and reputable people.
3. Accountability – A good board will keep you accountable because you will send monthly or quarterly reports to them. This makes sure you know your numbers and stay on your toes with respect to your goals.
It goes without saying that no one respectable will want to be publicly affiliated with you if you have a bad product/service, or if your reputation is questionable either. And remember, an advisory board is INFORMAL so it should consist of people who will double as mentors and not put you under undue pressure.
So where will you find Dangote or Ibukun Awosika to put on your board right? Don’t worry. It doesn’t have to be that complicated or far fetched. Tomorrow, I will write on how you can go about assembling a great board. Shalom!