Creating a Dream Team Advisory Board

If growing your company is at the top of your agenda, there's no better way to invest in the future than by putting together a board of directors. Think your company might be too small for one? Think again. Recruiting an effective board can provide even the smallest companies with contacts, credibility, wisdom and access to resources critical to growth.

So how do you assemble an advisory "dream team" to help you move from where you are now to where you want to be? Here's a profile of the personality types you need to form a top-notch board:

The money magnet: If your business needs cash to grow, this board member knows where to find it or what you need to do to attract it. She'll have a proven track record navigating the world of other people's money and may even have her own money to invest in your endeavor. Having this capital-raising expert on board is a plus, especially if you think VC funding is in your future.

The canary: This qualified and strategic accountant-type possesses sophisticated financial expertise and is versed in analyzing and navigating your balance sheet. She can act as your "canary in the coal mine," helping you avoid unnecessary risks, streamline costs and protect profits.

The influencer: Well-respected and connected, the influencer is more than willing to provide personal introductions to other influential people who can help take your business to the next level. Influencers can deliver pivotal alliances and new business opportunities to your doorstep.

The insider: This board member knows the ropes of your marketplace inside and out. She has likely been there and done that, and she brings boatloads of operating experience to the table, enabling you to identify how to make your company work smarter. This member may act as a personal mentor to you as well.

The outsider: Perhaps a CEO outside your sector, this board member's strength is leadership. Her perspective and advice are valuable precisely because she isn't that familiar with your industry. This member's involvement will demonstrate your openness and willingness to include others in setting a vision for your company.

Your dream team board also has to work well with and for you. These are the essentials for building a productive board:

• Active boards are better than cosmetic ones loaded with friends and relatives. Typically, the latter won't do much to challenge your perspective or generate results.
   
• Make sure your board is small enough for you to manage and that the size is an odd number so deadlock is never an issue.
   
• Locally based boards are always best, since it's easier to schedule meetings with relative frequency. My suggestion is one meeting every other month.
   
• Boards work best when goals and timelines are clear. Let them know what you need most and what will have the greatest impact on your company's future.
   
• Morning meetings are always best and a "check your cell phone or Blackberry at the door" policy is advised. These are busy, in-demand people; you need to keep them focused on your conversation.
   
• Always forward two to three results you hope to obtain at least two days in advance of each meeting. When members know what's expected from their participation, you'll get better input.
   
• Establish with members the amount of contact time you need with them between meetings. An upfront agreement will not only be helpful to them, but it'll also remove the intimidation factor when you need access.
   
• Compensate board members. This is standard practice and can be done for a small percentage interest in your company. Compensation turns your board from a volunteer activity to a professional commitment based on an exchange of value. This is critical if your board is to be held accountable to produce results.

How much does a strong board of directors really matter to a small, growth-oriented company? A well-connected board of experts gives your company credibility, knowledge and access to opportunity. Tapping into this deep well will go a long way toward growing your success.