Historically, small businesses’ strategic advisors have consisted of CPAs, CFAs, lawyers, and bankers. Increasingly these advisors are being supplemented by advisors in various forms:
- 15% of fast growth companies have a formal board of advisors. Here is why:
- To achieve performance improvement objectives (50%)
- Risk Management (50%)
- To receive unbiased influence and outside recommendations (41%)
- Strategic or financing partner (36%)
- To enhance and augment executive management skill (20%)
- To solve current near-term operating issues (19%)
- Preparation for capital, exit, or going public (7%)
- Advisory Panels created that include either customers, and/or partners and suppliers.
- Retained advisors that serve as “Operating Partners” provide performance improvements, focus, and management skill augmentation.
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