The Australian Small Business and Family Enterprise Ombudsman, Kate Carnell has suggested advisory boards can play a key role in small business success – providing much-needed advice and guidance to business owners.
Speaking at the Global Thought Leadership Summit in Melbourne today, Carnell said 74 per cent of businesses that use advisory boards want assistance with their growth strategy.
“Advisory boards are a secret weapon in the growing small business’ arsenal,” Carnell said.
“While the small business owner is often flat-out with the day-to-day running of the business, advisory boards are able to realise the SME’s potential by working on the business, not in it.
Carnell suggested no matter their size, small businesses should make use of advisory boards to help set a clear path for success by strategically helping businesses to plan growth.
“Many SMEs continue to consider themselves too small or not successful enough to engage an advisory board. Yet the benefits of advisory boards have been measured in other parts of the world.
Carnell cited a recent survey by The Business Development Bank of Canada (BDC) which found small businesses that used advisory boards grew sales by 66 per cent on average in the first three years after setting up an advisory board.
“The BDC survey found annual sales for businesses with an advisory board were 24 per cent higher than those without one,” Carnell said.
“Advisory boards can also be particularly useful in succession planning, which we know is a significant issue for Australian family businesses.
“Importantly advisory boards don’t need to be a huge cost or time consuming for the small business owner. You can arrange to pay a meeting attendance fee and meet every two-to-three months.”
More information about advisory boards can be found here.