Family businesses are often run by one or two people at the head of the family and have an informed decision-making process. While this can be fine for small businesses at first, more mature and growing family businesses can benefit from a more formal board structure.
Advisory board meetings may sound tedious; however structured get-togethers can make the difference between success and failure. In family businesses, it is wise to ensure that all major decisions are based on informed data/analytics and receive due scrutiny.
The advantage of regular advisory board meetings, which include family members, key personnel, advisors or trusted business associates reduces the load on the critical decision-makers. Also, they assists with intergenerational involvement, and reduce resentment if things don't go to plan. All board members get to have their say and 'buy-in' to crucial decisions, giving them a higher chance of success.
Regular board meetings cover many aspects of business management, including:
The outcomes of a productive advisory boards include:
- Design a profitable business model that is robust enough to sustain adversity and capitalise on opportunities.
- Focus on entrepreneurial business development that addresses weaknesses and positions the business to capitalise on opportunities.
- Quarantine time for working on the business. Instead of continually being dragged into the day-to-day operations.
- Develop a governance culture and compliance obligations across the company.
- Build a marketing and branding strategy for the business.
- Develop and continuously review the business plan.
- Become an Employer of Choice by designing and implementing human resource plans that attract and retain employees.
- Increase the professionalism and accountability of the business.
- Implement business case methodologies that scope tangible and intangible benefits of an investment.
- Implement performance measures, including key performance indicators.
Advisory Boards tend to meet quarterly with structured annual plans, standard agendas, action lists to govern outcomes and follow up. They should also annually review their performance and achievements.
If you think an Advisory Board could help your business, please contact us for more information.
Written by: Gavin Mitchell | Partner
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The information provided here does not constitute advice. The information is of a general nature only and does not take into account your individual situation. It should not be used, relied upon, or treated as a substitute for specific professional advice. We recommend that you contact Brentnalls SA before making any decision to discuss your particular requirements or circumstances.