Have you ever run into a speed bump when tackling a tough task that at first seems impossible to solve but after dropping and revisiting it with ‘fresh eyes’, realise the answer is simple and right in front of you? Fundamentally this is what an Advisory Board can offer in the modern-day business world, a ‘fresh-eyed approach’ to your business operations. A well-structured advisory board can not only bring a much needed outside perspective, but also critical advice and networking opportunities to complement your existing skills and assist in achieving business goals.
What is an advisory board?
An advisory board is essentially a group of people carefully selected by an entrepreneur with the sole intent of providing non-binding strategic advice and support to the businesses’ many stakeholders (owners, shareholders or directors etc). When compared to the traditional ‘Board of Directors’ arrangement, it provides entrepreneurs with a safe haven to express their thoughts as it is structured to be informal and flexible. While they may not make decisions for the business, they are still legally required to fulfil their obligations with care and due diligence.
What services can an advisory board provide?
Every business’s journey is unique, this means their expectations in respect to an advisory board must be handled differently and be specifically tailored to the business needs. A few general examples of where an advisory board can assist a business include:
- Requiring additional funds to be raised
- Where rapid growth has occurred
- Wanting to access a larger network or establish strategic partnerships
- Major changes in mission statement, core values or strategic direction
- Smoothing the transition between different business cycles
- Manoeuvring through complex succession issues
- Enhancing market reputation and creditability
- Implementing a better business culture
- Generating new business ideas or identification of overlooked issues
What is the selection process of an advisory board?
The selection process of your advisory board must be handled with great care. A business should evaluate itself honestly and identify what areas of the business are strengths and weaknesses and determine how best utilisation of external support can supplement or complement existing skills. Common areas for business skill gaps include strategy, legal, taxation, finance, technology, marketing and human resources. Advisory board members are usually compensated with a daily fee for each meeting, however if more is required than these occasional meetings a periodic retainer can be negotiated. In high profile arrangements company equity is also another option, usually being 0.25% (but can vary 0.10% to 2%) depending on the value of the advisor, time commitment to the role and length of the contract.
In today’s global economy and rapid progressing technology front, advisory boards are being mass adopted for their unparalleled flexibility and wide-spread application to all business’s regardless of size, industry or lifecycle stage.
How can we help?
Quill is the largest multi-disciplined financial services practice on the Gold Coast, with an extension office in Brisbane. We provide a high touch personalised service delivered with competence, confidence and amazing results.
At Quill we are passionate advocates for our clients, and our team focus is always to provide an amazing experience, not just great service.
To ensure your business is receiving the service it requires, talk to Quill today to find out what we can do for you. Get in touch with us here.
“We now hold our Board meetings at their office and they have become an integral part of those meetings. All reports for the Board are prepared and distributed in a timely manner. We have no hesitation in recommending the Quill Group to anyone looking for professional accounting services at a fair and reasonable rate.”
– Ian Overett