Why don’t more independently owned agencies have advisory boards?
All of the research points to this type of structure having a significant positive impact on the business. From overall financial performance, to strategy and risk/opportunity identification, through to the personal and professional growth of Founders/CEOs, the right advisory board could be a massive positive to your agency.
Almost every agency founder I’ve talked to has thought about what an eventual exit could look like for them, whether that’s a sale or succession planning. Yet, of those I’ve talked to, I can think of one agency with an advisory board, and one with a formal board of directors. This lack of governance has been called out as a common issue with everyone I’ve talked to looking to acquire agencies.
I can understand the hesitation around a formal board – control, cost, complexity, etc.
But an advisory board can be whatever the business owner wants it to be. A group of experienced experts, on your side helping your business to be successful, whilst allowing the owner to maintain full control.
Seems like a win/win?
Leave a Reply