Springboard to success: An advisory board can be key to building a better practice.

More advisory board tips:

1. Aim for five to 10 members to give you “a representative point of view”
2. Be clear on the time commitment you are looking for
3. Be sure to figure out an appropriate way to thank board members for their time

If someone told you that you could better your business by leveraging the wisdom of a group of professionals at little or no charge, would this sound too good to be true? Well, it’s not. This reality can be yours by forming your own advisory board.

There are a few different advisory board models, according to Sandra Foster, president of Toronto-based Headspring Consulting. A board could consist of members of your own firm, a network of peer advisors from your professional associations, a group of professionals from other fields or a select group of your clients.

Foster says whatever type of board your choose, its members generally have one thing in common. “Typically, your advisory board are people who like you, like the kinds of things you do and are willing to give their opinion to help you grow your business,” says Foster, who is also a Certified Financial Planner and best-selling author.

An advisory board can benefit you in a number of ways:

It can be your sounding board for new marketing strategies;
It can help you identify business opportunities you may have missed;
It can provide feedback on structural changes to your practice, such as a switch in how you are compensated; and
It can be a source for new referrals (especially if your board consists of non-related business professionals from your community).

What’s in it for them? Sounds like a convenient arrangement for you, but what’s in it for advisory board members? Foster notes that simply being asked can be flattering and an ego boost for some members. “And for others, some like to be on the leading or cutting edge of things, while some people want to be actively involved with something – it’s an opportunity for them to volunteer their time.” If your board consists of some “allied” professionals such as a lawyer or an accountant, being on your board could mean a new referral source for them.

Foster says that if you can pick the right members for your advisory board, it can be “an exciting way to consider ways to develop your business.” However, she cautions advisors who are considering forming their own board. “The advisory board is not the CEO or board of directors of the company nor are they accountable in any way, shape or form, so although you want their input, you have to consider it your business,” says Foster.

To learn more about building an advisory board and our business building tool Developing Your Business with Client Feedback and Buy-in call your Franklin Templeton Investments sales manager at 1-800-897-7286.

November 2002

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.

Staff

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