Your Advisory Board

“To turn really interesting ideas and fledgling technologies into a company that can continue to innovate for years, it requires a lot of disciplines.” ~~Steve Jobs RIP 10/5/11

You may have heard that business owners wear many hats. This is very true. It requires a lot of different skills and activities to keep an enterprise humming and thriving. We all bring various competencies to the equation—both business-related and personal. For example, one person may be a good marketer, excellent father, decent driver, and terrible golfer. They can’t sing but write well. This composite individual has strengths and weaknesses. In your business (as well as in personal relationships) weaknesses can be crippling and even fatal. Understanding that, you can appreciate the value of an advisory board.

This is a group of peers—fellow-business owners—that gather regularly and discuss pertinent issues. They bring expertise and experience into areas you are lacking and you can offer the same to them. Theoretically, seventy-percent of all business is the same while most of us only think of the thirty-percent that differentiates them. You would hardly think of an auto repair business, financial planner’s office, and chiropractor have much in common but they all deal with finding new customers, servicing accounts, billing, tax preparation, hiring, insurance, website selection, and countless other similar details. When someone has already mastered the process of accepting credit cards, for example, the other members can benefit from that knowledge.

In some cases you can start your own group. In others you can join an existing one. A good middle ground is a mastermind group. These are similar to business networking groups except that the focus is on sharing ideas rather than mining for referrals.

The best advisory boards will challenge your pre-conceived ideas and highlight soft areas. They can be uncomfortable yet invaluable. Some are very hands-on while others are more visionary and big-picture-centric. Some meet monthly and some meet quarterly. Some meet in person and others in more virtual settings.

Ivan Misner in The 29% Solution quotes business strategist Geri Stengel regarding ten effective tips for creating an advisory board, summarized below:

1. What is the objective of your board? Will this be an industry-specific group or more generalized? Will it be a hybrid (business-to-business or homeowner-centric, for example?) Will it be regional, national, or larger? Will it include customers?
2. How do you choose the right people? Understanding the purpose is one thing. Further defining the level of expertise, business size and maturity, etc., is another matter, as well. Whatever metric you define, be certain to consider “people skills” as well. Look for willingness to share, problem-solving ability, communication proficiency, and so on. Some boards love to recruit celebrities and a big name adds some allure while also opening the door for powerful introductions but don’t just gravitate to that if it is not a fit in the other areas, as well.
3. What are your expectations? Be clear about time commitments, responsibilities, desired results, and all the rest. The clearer you are about the strengths and weaknesses of your current board make-up, the surer you will find the right person for the right reason that will stay. If your board will consider private matters have a confidentiality agreement prepared.
4. What is the compensation? Certainly involvement has its own rewards. Decide on food, expenses, stock options, and cash payments, if any.
5. How will you maximize the experience? Carefully consider the logistics and prepare agendas ahead of time. If prior knowledge of a topic is needed, deliver that ahead of time. End every session with a recap of the action plans and facilitate the process. Ideally, recap each meeting for all attendees (perhaps all members.)
6. Honesty is the best policy. As mentioned above a strong advisory board will be challenging. Every member should share their own mistakes, especially in the early formative sessions. This builds rapport and provides a framework for trust. Honesty may put you in an uncomfortable situation as the probing questions uncover what you don’t know, never considered, blind spots, and so forth. Keep the conversations frank without personal attacks.
7. How will you deal with the time/distance gaps? Meeting frequently drives momentum yet can burn members out. Meeting less often can lead to drift. Defining these expectations and finding suitable methods of between meeting communication is important. Emails, wikis, listservs, shared websites, and so on provide useful ways to move ideas across erratic schedules. Some members will access this late at night, for example. It is also useful to assign sub-committees who meet on specific topics at their own schedules and report results at the regular sessions.
8. Will you respect the board recommendations? Everyone’s time is important. Do not monopolize the floor, for example. Conversely, when something needs to be said—do so. Listen to the advice given and consider your own actions. You will ultimately live with any decision, so there is no need to rush. That said, respect the advice, share your decision, and share the results.
9. How will you keep board members informed? You may in time find the advice was incorrect and now will be talking about how to repair and restore. You may find that new areas of opportunity or concern have cropped up. You may simply find that things are moving according to plan. Briefly updating your advisory board is important.
10. How will you deal with problem members? Set a structure up that enables you to deal with the inevitable issues that arise. Be certain to consider legal challenges, as well.

Who might you want to seek out for an advisory board? Here are some areas to consider:

• People in your profession. This includes current professionals as well as prior specialists. There are benefits from both areas. Active experts have current technology, contacts, regulatory knowledge, and more. Former wizards bring different depth, too.
• Outside observers. These can include regulators, authors, and business consultants.
• Members of similar or related professional organizations like trade group people.

This is a large, significant area and sets the tone for your 2024 focus. Your action this week is to start planning your advisory board. I am including a link to Advisory Board Centre’s website here as an idea factory. Start fleshing out the answers to the ten questions above and solicit feedback from those you respect. Merry Christmas, too!

© 2023 by Stephen Hand of Triangle BNI.
All rights reserved. No part of this document may be reproduced or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without prior written permission of Stephen Hand of Triangle BNI.

Make the Difference

“Mentoring is a brain to pick, an ear to listen, and a push in the right direction.” ~~John C. Crosby

Mentors provide leadership, guidance, and support. Their interest in our success may be unexpected or actively sought. It may be provided with patient step-by-step counseling or delivered in more fleeting, sometimes cryptic teaching moments. No matter the method it is offered in a sincere desire to help and received—when fully understood—gratefully.

Mentorship embodies the “Giver’s Gain” philosophy.

By serving as a mentor you have the chance to make a significant difference in someone else’s life. Less apparent is that a mentor has a golden opportunity to sharpen their own skills. In teaching we learn.

Think of your mentors. They took some time to help and made a difference. What feelings do you have for them? Gratitude is the most compelling emotion. If they called and asked for some help you would set other things aside and give this effort the attention it so fittingly deserves.

We have been together for fifty weeks and it is time to begin paying it forward to others while deepening your personal understanding, as well.

Characteristics of a Good Mentor

All successful business people do not necessarily make effective mentors; certain individuals are more effective in the role of developing others. Whether or not an individual is suited to the role of mentor may depend on his or her own stage of development and experience. For example, a fairly successful individual may have had a specific, or limited, background and may not have enough general experience to offer. Prior to entering into a mentoring relationship, the protégée should assume the responsibility of assessing the mentor’s potential effectiveness.

The qualities which are essential in an effective mentor include:

• DESIRE TO HELP Individuals who are interested in and willing to help others.
• HAVE HAD POSITIVE EXPERIENCES Individuals who have had positive formal or informal experiences with a mentor tend to be good mentors themselves.
• GOOD REPUTATION FOR DEVELOPING OTHERS Experienced people who have a good reputation for helping others develop their skills.
• TIME & ENERGY People who have the time and mental energy to devote to the relationship.
• UP-TO-DATE KNOWLEDGE Individuals who have maintained current, up-to-date technological knowledge and/or skills.
• LEARNING ATTITUDE Individuals who are still willing and able to learn and who see the potential benefits of a mentoring relationship.
• DEMONSTRATED EFFECTIVE MANAGERIAL (MENTORING) SKILLS Individuals who have demonstrated effective coaching, counseling, facilitating and networking skills.

Your action step this week is to assess your own mentoring potential and seek suitable candidates that deserve your attention. In some cases you may need to break the ice and inform these candidates of your intention and availability.

© 2023 by Stephen Hand of Triangle BNI.
All rights reserved. No part of this document may be reproduced or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without prior written permission of Stephen Hand of Triangle BNI.

Hub Firm

“An organization’s ability to learn, and translate that learning into action rapidly, is the ultimate competitive advantage.” ~~Jack Welch

Just as no man is an island, no (or almost no) business transaction takes place in a vacuum. There is usually a preceding and following event (or three.) In the book The World’s Best Known Marketing Secret the author, Ivan Misner, refers to the concept of a hub firm at the center of these events.

Hub firms take time to develop and rely heavily on trust and competence. In the hub firm model, one company has the relationship with the client and coordinates business across other companies in order to assist the client with those other transactions.

Hub firms cover a wide-range of situations—towing to a repair shop, power-washing before painting, and cleaning up after construction are a few everyday examples. These are simple partnership arrangements while the true hub firm is more complex. Let me give you two examples of these.

Consider the Financial Planner who works with a variety of clients. Some of these are people who are starting a new business. A typical Financial Planner might recommend that the client find some resources and may have a few loose recommendations. The savvy Financial Planner, however, has already aligned herself with a CPA, a business attorney, and a business banker, for example. These professionals can all meet the client at once and map out a cohesive startup strategy. Certainly, any member of the team can drive the hub relationship for their clients, as well. This team approach provides competitive advantage and can save the client time and (usually) money, as well. At the right point in the process they can introduce web designers, graphic designers, advertising specialists, and so on.

A second example has to do with a hub firm Realtor. In this scenario, we have a home-owner who is listing their house. The Realtor can mobilize a carpet cleaner, moving and storage company, and interior designer as follows. The moving and storage company gets “clutter” and bulky items out of the home and into storage. The carpet cleaner freshens up the floors and the painter does the same for the walls.  The landscaper improves curb appeal and the interior designer stages the home for quicker sale. The Realtor coordinates these efforts and can utilize these pros, as needed.

Both of these identify the power of the hub firm model. Not every client requires all the members of the team. The hub firm “quarterbacks” those efforts. Building a hub team takes time and commitment. These trusted partners must maintain the integrity of the whole team with each project.

Your action step this week is to begin to build your hub team. Consider some of your best clients and what needs they have and who you know that can help. In some cases you will need to coordinate existing relationships. In some cases you will need to replace existing relationships. In still others you will need to establish and develop new relationships. The effort is well-worth the trouble.

© 2023 by Stephen Hand of Triangle BNI.
All rights reserved. No part of this document may be reproduced or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without prior written permission of Stephen Hand of Triangle BNI.

Speak and You Shall Receive

In repeated studies over the years people rank their fear of public speaking above the fear of dying. This can be a daunting experience but if you are in sales your business is going to involve public speaking. Let me take you one step further. If you are in business you are in sales.

Please take a few deep breaths…we can get through this together. Standing in front of a room presenting your product or service brings butterflies in the stomach for some. Like two sides of a coin, though, strengths and weaknesses are joined. Those butterflies provide valuable energy when you can teach them to fly in formation.

As a business professional you are often asked to give a sixty-second elevator pitch at networking events. Sometimes that expands to a ten-minute chamber function talk or a twenty-minute sales presentation. Ideally, you will not only share the information with confidence but include motivation and leadership at the same time. As intimidating as this may all seem your audience is rooting for your success, as well. After all, they have time invested in the talk, too.

There are professionals that can help you. One of the best local resources is your Toastmasters club. There are dozens within a short drive of most people and these are supportive training environments where you move at your own pace. Membership dues are insignificant and participation is voluntary (although that is where skills are developed.) I think of it as renting an audience.

There are business coaches, life coaches, sales trainers, and even speaking coaches in your local area, as well.

For those do-it-yourselfers (experienced and not so) here is a short list of five tips to consider:

1. “A winning effort begins with preparation.” ~~Joe Gibbs. Prepare, prepare, prepare! Prepare an outline and practice using note cards. Write (or better type) using large font and simple words. Make it incredibly easy to read. Avoid over-preparation, though, as that leads to nervousness. See the next point for more on this.
2. “A man’s accomplishments in life are the cumulative effect of his attention to detail.” ~~John Foster Dulles. Focus on one or two areas you know best. This will be easier for you to talk about which raises your confidence level and reduces stress.
3. “A picture is worth a thousand words.” ~~Napoleon Bonaparte. Using visual aids provides a ready roadmap to follow for both the speaker and the audience. Avoid the temptation to simply read the slides, however. This is insulting to your audience and diminishes your credibility, as well.

4. “Who’s to say who’s an expert?” ~~Paul Newman. The audience is here to listen to you. Remain credible and engaging and remember that you are the expert du jour.
5. “I would rather entertain and hope that people learned something than educate people and hope they were entertained.” ~~Walt Disney. Creativity goes a long way. Ask questions to engage your audience. Move around the room. If you can juggle or sing, that is a compelling ice breaker, as well.

In BNI, members have the opportunity to present ten-minute presentations to their fellow members. For some people, this is reason enough not to join. In fact, presenting is not required although it is a wonderful opportunity. Recently a CPA faced this reluctantly and was at a complete loss. She considered rescinding her membership rather than face the group—who are a very supportive audience. A fellow member recommended that she simply come up with ten questions and take twenty seconds to ask the question and forty seconds to answer it. This seemed palatable to the accountant and she prepared the questions before the day of their delivery arrived. Nervously, she stood and read from the sheet. Question One. Answer One. Question Two. Realizing that the question assumed a little knowledge she wasn’t sure the members had, she interjected a two-sentence clarification and read Answer Two. Question Three. Answer Three needed more elaboration, so she spoke directly to the audience about this area of accounting—an area she was knowledgeable and passionate on. This was easier than she expected. Glancing down at the paper she combined Question Four and Answer Four and expounded on exactly how this element faced her clients and the solutions she brought to their businesses. It was a little surprising to her when the President stood up and let her know that she had already gone over by a few minutes and recommend people get together with the CPA later to hear more.

There are many resources about public speaking. Please avail yourself of them.

Your action this week is to look for opportunities to present and practice each of the five tips above. If you are terrified, simply focus on a single sixty-second presentation and hone it to perfection. Find as many different venues to repeat it as you can. Start with the dog as your first audience, if you must, and then move up to a networking environment. Enhance creativity by including a joke, poem, or catchy saying. Expand your repertoire of presentations over time. As your skill develops, seek out small speaking opportunities such as lunch-and-learns, chamber of commerce events, professional associations, and so on. Many groups are often faced with the challenge of finding qualified speakers. Make their life easier and yours richer by becoming a competent speaker.

© 2023 by Stephen Hand of Triangle BNI.
All rights reserved. No part of this document may be reproduced or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without prior written permission of Stephen Hand of Triangle BNI.