It is important for even the most successful businesses to understand why they need advisory boards. It is easy to overestimate a company’s capabilities and assume it can overcome every market change. Even the smartest entrepreneurs can lose perspective when emotionally invested. This is why successful businesses need advisory – an advisory board of experts offers a third-party view to help businesses thrive by ensuring they don’t lose sight of the right perspective to tackle situations. An outside perspective is key to ensuring businesses overcome challenges and thrive at all times.

How the Fortune 500 Companies Take Advantage of Expert Advice

The most successful companies in the world know that sometimes it takes an outsider to reveal what might be limiting them in terms of money, resources or connections. According to The Advisory Board Centre State of the Market Report, there are a whopping 1.3 million advisers serving these boards around the globe.

In most cases, companies overestimate how quickly things change when it comes to market domination–and it is in these times of crisis that CEOs rely on the advisory boards for not only wise advice based on their expertise but to also expand their network. Advisers’ business circles can be crucial for strategic partnerships and growth of the company. In fact, most companies take use of their advisers to get insight into every part of their operation–ranging from supply change to sales or management. The result? The corporate saves millions of dollars worth of money and resources by preventing a bad decision.

The Importance of a New Business Perspective

Although crisis is no friend to any business, it is inevitable. However, businesses can limit the damage and formulate an effective recovery plan if they act quickly. Connections and the right perspective can make a hell-to-heaven difference. The business world is full of examples wherein companies have lost their reign because they couldn’t see beyond their present success–only because they didn’t seek or act on a third person perspective.

One of the best known case studies that illustrates this is of the once revered king of cell phones: Nokia. Nokia was at the top of their game in 2000 with their Symbian OS. They overplayed their hand when it came to assuming consumers would continue to prefer Symbian even when Android and Apple had started gaining popularity. In fact, former employees have commented how their success made them complacent. The downfall was imminent. All could be prevented with wise advice that could have grounded them in reality and make them act swiftly to change things.

Putting Together an Efficient Advisory Board

Although the advisory board can play a huge role even at the most preliminary stage of realizing the concept of the company, it’s best to bring in the whole set of advisers when you are awaiting traction. Diversity is important in picking advisers too. While one of the advisers can be an expert in management or entrepreneurship, you should also cherry-pick experts from accounting, marketing, finance and legal backgrounds. The best way to thrive is to be covered on all fronts.

The next thing is to ensure that they will genuinely be able to devote time to study and analyse the company’s operations. The last thing anyone wants is to bring in the biggest names–only to have them commit less than an hour a month to actually fulfill that role. Best way to understand the passions of your advisers is to build a personal relationship with them and also set effective company policies for adviser meetings. The right communication and personal connections like that can go a long way in adding substantial value to the business.

How Startups with Limited Budget and Business Connections Can Obtain Expert Advice

It’s more typical of big corporations to have an advisory board due to their own connections in the industry. But isn’t it the new businesses that lack such resources and are just starting out the ones who need expert advice the most? We have the solution – drop us a line.

why successful businesses need advisory

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