Once you have determined your objectives for exit (the finish line) and the present value of your business (the starting line), it is time to obtain professional opinions from a team of experts you trust -- your advisory board. If you do not have an advisory board, here are the key members and some suggested additional members you should solicit:
Core Board Members: CPA, Business Attorney, Insurance Advisor, Business Broker, Banker and Financial Planner.
Additional Board Members: Business Consultant, Investment Advisor, Estate Planner and other specialists as required.
Why do you need an advisory board? Well, you need subject matter experts for depth of knowledge and multi-disciplined membership for breadth of knowledge. Also, the team-based approach will enforce discipline on your attorney and CPA. If they know they need to prepare documents for an annual meeting of other professionals, don't you think they'll be prepared?
What qualifies a good advisor? Well, someone with exit planning experience is a good start. They need to be willing to work with other advisors in developing and sharing a plan for your business. And, they need to encourage action on your part and provide guidance as necessary.
What does an advisory board do? Well, initially, they assist you with putting together an exit strategy. This would include items such as a legal, financial and insurance audits; and tax, employee, growth, contingency and personal financial workplans. Once the initial strategy is complete, the advisory board should conduct annual health checks and reviews of workplans to ensure progress toward your exit objectives.
If you need assistance with pulling together a top-notch advisory board, contact me at 239-405-8818 or eric@bluechipbizsolutions.com for more information.
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