In his book, Seven Habits of Highly Effective People and the training program that evolved from it, Steven Covey asks:
“What one action, if you did it consistently well, would dramatically improve your situation? Are you doing it? what’s stopping you?”
Do you have a Board of Directors? You’re probably thinking, “I’m a small business owner with three employees. Where do I find a Board of Directors?”
The answer is, “Everywhere.”
Why a Board?
Before we explore everywhere, let’s consider why you should form a Board of Directors. The idea is not new for large corporations, but applying this business management tool to small businesses and solo practitioners is a relatively recent practice. Whether large, small, or working solo, the purpose of the board is the same: advice and accountability.
You formed your business for a variety of reasons ranging from a desire to be independent, to believing you could do what you do better than a previous employer, to wanting to profit from a unique idea or offering. Those reasons (and perhaps many others) were the impetus, the spark; and they may be continuing to provide motivation. All good.
Business Life-Cycle
At some point in the life cycle of any business, conducting business transitions from the initial spark stage to the development stage, and eventually to the stability/maturity stage. In those early stages, you are supplying most of the energy yourself—doing everything from the marketing and sales to cleaning up the place on Saturday. As your customer base expands, and you are staying busy, you often bump up against your own limitations. And that point, the personal Board of Directors becomes a resource to spark the business again, and to keep sparking it as you grow.
The rationale behind having a Board is simple and proverbial: more heads are better than one. By meeting with your Board, you open yourself up to ideas, methods, experience, motivation, technologies, market data, unknown resources, a wider network, business discipline, and accountability measures. You are always 100% responsible for the conduct and performance of your company or practice. But you don’t have to be 100% of the resources supporting your activity and decisions. The Board of Advisors serves this purpose.
Who is on my Board?
The foregoing gives you the “why” and some of the “how” of forming a Board of Directors. Let’s return now to the idea of “everywhere.” “Everywhere” really gets at the question of who should sit on your personal Board of Directors. The membership should be people you trust, both professionally and personally. You are seeking out professionals whose own business competence is evident in their success. You also want people who have a personal interest in your success. Remember, your personal Board is a volunteer body. The members are not compensated financially (at least not directly). So their motivation has to be unselfish, based on wanting to help you. That kind of person typically will come from the ranks of those you already know.
The obvious candidates are a business associate from a previous experience; your accountant and/or attorney; other business owners from a non-competing business (e.g., your dentist or physician); a good customer/client; a trusted friend/neighbor; a clergyman. In short, people who know you well enough to be candid and care enough to be committed.
Get Started Now
Start drafting your list now. Your initial list might have 12 or 15 names, but you’re looking to form a Board of six to eight directors, a number broad enough to get a good cross-section, yet small enough to be manageable. Once you have listed the candidates, make some notes about the attributes, skills, knowledge, and experience that each candidate contributes so you create a diverse membership. Then make the fine decisions to come down to your short-list of six or eight.
Your final step in the selection/formation process is to extend the invitations. A good idea is to make some notes about the words (lyrics) you will use to invite your short list candidates. You want to be clear about the nature and purpose of your request. You don’t want to sound tentative or vague. You have made a decision to strengthen your business, so you will want to communicate that confidently. The form of communication–phone call, personal meeting, email, conventional letter–varies with your comfort level and your existing relationship with the invitee.
Next Steps
In a subsequent “Speak Up,” we will address some of the tactical issues such as meeting frequency, meeting length, meeting topics, agendas, follow-up mechanisms.
If you see value in the idea of forming your personal Board of Directors, and want assistance getting started and following through, contact Coach Up! at coach1@coach1up.com.
Ted Williams is a name familiar to most sports fans, especially those who follow baseball. Many of those in the know claim that Williams stands as the game’s greatest hitter. They make this claim based on the fact that Williams was the last hitter to bat .400 for an entire season. He accomplished that feat in 1941, a long time and thousands of batters ago.
For those of you who don’t follow baseball, you’re probably wondering what “batting .400”means, and what is so special about it.
Here’s what it all means. Batting .400 for an entire season (in those days 154 games stretching from April to the end of September) means getting a hit 4 out of every 10 at bats, i.e. 40% of the time. I know what you’re thinking: “If I did what I’m supposed to do at work only 40% of the time, I would be invited to do it elsewhere.” Or, “My business would fail in six months.” Probably true.
But hitting a baseball is considered by most sports fans to be the single most difficult sports action to perform consistently well. So difficult that doing it only 4 out of 10 times is considered great. For regular positions players, hitting .300 for a career is considered Hall of Fame material. So Williams’ .400 is huge.
So what does this have to do with anything other than baseball? Williams was the last player to bat .400 for a season, 68 years ago. He finished his 21 year baseball career (interrupted twice by military combat service in WW II and Korea) with a .344 average.
Still, Ted Williams, the game’s greatest hitter, went to Spring Training every year. He practiced. He studied hitting. He studied the pitchers. He worked with his coaches to perfect his swing, his stance at the plate, his timing. He “listened” to his body. He watched other players. He did not take his ability for granted. And he never assumed he had reached the last measure of improvement. There was always the next thing to master.
Whenever I think I have something down cold, have it knocked, I think about Ted Williams and ask myself, “Are you as good as Ted Williams? Can you sit pat where you are? Are you good enough? ” You know what my answer has to be.
What’s yours?
And do you know what your next move is? Because it matters.
anomaly
DEFINITION: (noun) something different or irregular.
EXAMPLE: The tiny planet Pluto, orbiting next to the giants Jupiter, Saturn, and Neptune, has long appeared to be an anomaly.
SYNONYMS: atypical, uncustomary
July 15, 1916 The Boeing Co., originally known as Pacific Aero Products, was founded in Seattle by William Boeing.
Card Name
Those of us who worked at the front desk of a convention hotel in Williamsburg, Va., prided ourselves on making the guests feel special. When someone arrived at reception, credit card in hand, we would sneak a peek at it and address him by name.
Once during a particularly busy check-in, one of our guests presented a corporate credit card. “Welcome to Williamsburg, Mr. Bell,” the desk clerk said.
“Oh, please,” the man replied, “call me Taco.”
What lies behind us and what lies before us are tiny matters compared to what lies within us.
– William Morrow
| IMPECUNIOUS |
| Definition: poor; having no money |
| Example: The investor found himself IMPECUNIOUS following the stock market crash. |
| Synonyms: indigent, destitute |
One of the critical phases in the life-cycle of a small business is the transition of the business owner’s role from technical specialist in what the business does—HVAC, printing, PC service/repair, home improvements, personal services, etc—to managing others who take over performing the physical work.
For this week’s question, let’s hear from those of you who have gone through, or may be approaching, this transition phase.
Have a question, issue, or problem? Post it here, and we’ll all brainstorm possible solutions.