Advisory Boards can help rebuild businesses beyond the pandemic!  


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Advisory Boards can help rebuild businesses beyond the pandemic!  

Being proactive and pooling experience and wisdom are needed to tackle these challenging times and lead businesses into the next ‘normal’. Now, more than ever, advisory boards can play a critical role in achieving this. 

As we move through different phases of the pandemic, it leaves a trail of disruption to the economy and many businesses.  In fact, four in five small businesses (83%) operating under modified conditions reported that revenue had decreased as a result of COVID-19.* 

During this time, businesses learnt that they needed to adapt, change and move quickly to deal with the many challenges they faced.  This was most likely the difference between surviving or not.

Businesses today need to deal with the consequences of this pandemic and how they will prosper into the “new reality”.  Many are wondering what is next and what needs to be done to ensure a full recovery and a stronger future ahead.  Those who understand this and are committed to finding ways of doing things differently will be more successful in securing their position in this competitive and changing world.  However, the challenge for business is that they are dealing with changes they have not experienced before and having to adapt ways of doing business they have not used before.

An ideal time for an advisory board

This is where an advisory board, with its mix of experience, knowledge and skills, can be of enormous benefit to a business struggling to find its footing again.

Now more than ever is an ideal time for businesses to reach out and seek external help through an advisory board to help their business make the required changes and develop and implement the strategies required.  The task of building an advisory board sounds quite intimidating, but the reality is, it can be relatively informal in nature but still provide owners and managers with a ‘safe’ space to discuss issues of major significance.

Advisory boards can often be the secret that lies behind a successful and thriving business!

What is an advisory board?

An advisory board is a selected group of individuals with the knowledge and skills a business owner lacks. They provide their time to assist, guide, challenge and provide perspectives on dealing with issues and capturing new opportunities.

Having the right advisory board can complement the strengths and counteract the weaknesses of the business owner. It can also bring fresh thinking and insights to the business that may otherwise be missed.

Selecting the right advisory board: 

When selecting a good advisory board, it is important to look for members with these characteristics:

  • they will challenge the owner to come up with different ways to approach problems, will force them to rethink assumptions and possibly even to consider taking some risks.
  • they don’t always agree with the owner (or each other!)
  • they won’t just tell the business owner what they think he or she wants to hear
  • they will not be compromised when it comes to important issues for the business.
  • they have the needed expertise and experience to draw from and may have been in a similar position themselves.
  • they have respect for and feel comfortable working with the business owner, even through disagreements and difficult periods.
  • they are likely to have a reliable network of people that they can connect with or introduce to the business owners across different disciplines.

Most importantly, the board members won’t need the position, but they are there because they want to assist and are passionate about helping others.

And that’s exactly what every business needs!!

The benefits of having an advisory board

As our colleague Ming Long AM FCA, Board Director, recently said … “Every board needs a variety of lived experience to enable it to make the best decisions.”**

Those that have had direct experience with the operations of an advisory board agree that it can fill missing gaps in a business and that there are many potential benefits it can provide, including:

  • The combination of different personalities, talents, expertise and skills lead to a diversity of opinions from different perspectives.
  • Acts as a platform to take the heat when others may not agree with the decisions of owners/management.
  • Provides a practical viewpoint of ideas that can be implemented and that fits with the business objectives and resources.
  • Improves the credibility of a business in the marketplace.
  • It helps garner information to manage risks.
  • It can help the business avoid making costly mistakes.
  • Provides specialist skills of advisers who understand and have experience recovering, growing, and developing a business.
  • Helps to manage and control disputes and disagreements between family members that work together in a family business.
  • Provides a platform to test and develop ideas.
  • It can potentially open doors to access important resources and capabilities.

When would a business benefit from an advisory board?

  • When recovering from the effects of COVID-19.
  • When management is facing major decisions and/or changes in direction.
  • If the business is experiencing specific functional and/or structural issues.
  • When a business needs to raise necessary funds.
  • If the business is facing a stage of rapid growth.
  • If the business is entering into new markets, introducing new products/services or expanding operations.
  • If the business wants to build strategic business partnerships.
  • If the business lacks a strong internal team.

When looking for a suitable member for an advisory board, you should search across different areas – it can be a friend, professional colleague or someone in your network or industry.

At dVT Group, we have successfully set up or been involved in advisory boards for our clients in the past.  Our expertise ranges from assisting various companies in restructuring, obtaining equity, acquiring businesses, implementing exit strategies and investigations, forensics and business valuations.

Riad Tayeh has over 30 years’ experience and enjoys a reputation as a tough-minded and astute practitioner, offering clients an energetic and practical approach to business solutions.

We would be happy to discuss with you, or one of your clients, how their business may benefit from an advisory board.  We can help identify actionable steps to improve a business’s financial health, so they can move forward into this “new normal” world.

Should you wish to ask questions about an advisory board and how it relates to the individual situation and needs of a business, please contact Riad Tayeh on 02 9633 3333 or mail@dvtgroup.com.au.

dVT Group is a business advisory firm that specialises in business strategy, turnaround, forensic investigations and insolvency (both corporate and personal). 

 

* https://www.abs.gov.au/

** Tweet, 2 July 2021