How to Build an Effective Advisory Board for Small Businesses

by Lashay Smith
August 29, 2024

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Small businesses are becoming the world’s most growing type of business whether people are selling digital products, services, sweet treats, or clothing. The journey of starting and operating a small business is exciting yet challenging. You wear many hats, acting as CEO, accountant, marketer, sales representative, customer service agent—the list goes on. 

As a business owner, you are passionate and dedicated to the work that you put into your business, but what if there was a way to gather a group of experienced influential business leaders to help you along the way? You can now find an advisory board to help your business reach its full potential with growth being the main goal.

What is a small business advisory board?

An advisory board is a group of experts with years of experience who share their skills and knowledge with business owners to help you succeed. Unlike a board of directors, an advisory board does not have any financial control over the business and is simply there to help you on your business journey. You can meet virtually or in person with your advisory board members and discuss ways to improve and build your clientele. Here’s how you can build an effective advisory board for your small business. 

1. Outline your small business goals and needs

Before you start the research process on an effective advisory board, you want to make sure that you define the goals and needs for your business. Create a list of what you have already accomplished and what you would like to see once you find your advisory board. Be very detailed in your list to help guide you in the process of searching for your future advisory board. 

2. Start identifying your ideal advisory board members

After creating your list of needs, start your research process on who could potentially be a candidate for your board. You can use LinkedIn to search for professionals in your industry, attend conferences or workshops that are open to both business owners and professionals, or join local organizations and connect with other members. This will help you get to know your potential board members before extending your pitch and see how your business can benefit from their expertise.

3. Evaluate and make the selection for your board 

After attending information sessions and networking events, grab your notes and evaluate each potential candidate. You want to make sure that you take your time with this process because this will determine if the professional that you will add to your advisory board can help grow your business and meet your needs. Keep in mind what you would like help with as you finalize your list of advisory board members. 

4. Contact and pitch your advisory board 

Now it’s time to contact the professionals that you have selected to be on your advisory board via phone or in person. You will provide them with a brief history of your business journey, what you would like to accomplish, and provide a description of each role of your future advisory board. Be sure that you are very clear during this discussion of the role of each person on your board. 

5. Gather your advisory board for success

After selecting the professionals to lead your advisory board, plan out monthly check-ins to see how your business is progressing and to gather insights from the members. 

Building an effective advisory board as a small business is a strategic move that can provide guidance to running a successful business. Whether you are a one person team or a larger organization, the extra help and support from your advisory board will help you identify steps to improve your business and address challenges. 


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Are you looking to build your advisory board?

Join the Advisory Network for Small Business and PIDC to find out how successful Philadelphia entrepreneurs used advisory boards to build a strong foundation and reposition their businesses for sustainable and profitable growth.

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