Loose Lips Sink ShipsWritten by Tia Scott
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example, I have my own personal method of placing Google Adsense on my pages. If you visit any of my sites, you could probably figure out easily what placement method is, it’s not that hard, kudos to you if you figure it out. However, if someone asked me about Google Adsense placement, I’d send them to this page: https://www.google.com/support/adsense/bin/answer.py?answer=17954&ctx=en:search&query=placement&topic=0&type=f I don’t like to tell anyone my methods because I don’t want my competitors to know and information tends to be digitally raped at this place called internet. Just use your head before you lend knowledge to others. If there is a certain way you do business that is out of norm, something that is tailored to your business, or something you had to figure out a solution to on your own, it’s probably best you don’t go around making posts about it on internet. With saying that, I feel so much better now. This probably saved someone from getting a spanking.
Tia is CEO of Client Centers, LLC, an internet and graphic service business based in Florida since 2000. She is also the editor and founder of www.NerdByte.com This article is free for reprint without the permission of the author as long as proper credits are left intact. Tia Scott CEO Client Centers, LLC www.clientcenters.com www.NerdByte.com
| | How to Develop a Successful Board of Advisors (...and Why You Should!)Written by Eric Graham
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Look for a proven track record. Find leaders in their field. The best board candidates are successful CEOs, business owners, professionals, university professors and consultants who have achieved success in their own businesses and careers. Clearly communicate your goals and objectives. Invest time in talking to and meeting with potential members. Communicate to them what your goals and objectives are. Let them know that you are not looking for “yes men” and that you want advisors who will challenge you and hold you accountable for your businesses growth. Board Compensation Board members expect and deserve to be compensated for their time, efforts and advice. Typical advisory board compensation includes a stipend from $5,000 to $25,000 per member, per year. Some companies pay their board members per meeting, with payment ranging from $500 to $3,000 per meeting, with a monthly retainer of $500 to $2,500. Companies should also cover transportation, meals and lodging for members when attending meetings. Most successful boards also give or require members to buy stock or some form of equity in company. This gives board members equity participation and a vested interest in growth of company. Pitfalls to Avoid Some potential problem areas to avoid when setting up or working with your advisory board are: - Members missing meetings. Because board members are usually running successful businesses of their own, they may not always be available for every meeting. However, board members should be made aware that attendance of board meetings is important and expected. If a member is chronically absent, value of their membership on board should be reviewed.
- Insecurity of senior managers. Some company insiders may feel intimidated or threatened by involvement of outsiders. The CEO or owner must make every effort to communicate to his staff benefits and importance of having a board of advisors.
- Incompatible personalities. This is a challenging situation, because most members of your board will be strong willed, achiever types, who have gotten where they are by taking charge. Many will have strong convictions about their opinions and may find it hard to defer leadership of meetings to CEO. You must determine when a member’s personality is “too strong” and becoming disruptive.
- Excessive number of board members. Because of their strong personalities, if you have too many members on your board, more assertive members often dominate debates, depriving you of contributions quieter members may have made.
- Lack of CEO communication. Withholding company information or not regularly communicating with members of your board of advisors destroys trust and effectiveness. Regular communication between meetings is essential to maintaining an effective board. Inadequate compensation. As I mentioned, you do not want compensation to be determining factor in a candidates membership on your advisory board, however successful individuals of caliber you seek expect to be fairly compensated for their time and knowledge.
Keys to Board Effectiveness - If you build it, use it. Owners and CEOs who invest time and money in creating a board should be committed to soliciting and using its advice on important issues and decisions.
- Value their input, even when they disagree with what you want to do. Sometimes a board is at it’s most valuable when it recommends against a course of action CEO wants to take. If you recruit a good board, often they have already been down path you are on, and their experience (and past failures) can help you to avoid costly mistakes.
- Communicate with your advisors. Keep members of your board informed about what is happening in your company and industry. Counsel with individual members on phone at least monthly and send them information well in advance of your meetings, to help them prepare and keep meetings productive.
- Hold regular meetings. Most boards meet once per quarter. However, boards should meet more often during times of rapid growth or if company needs merit additional oversight and guidance.
- Have an objective for each meeting. Your board members are busy people and their time is valuable. Make most out of your meetings with them, by having a clear agenda and objectives for each meeting. Make sure to cover most important items of business first, in case discussions take longer than planned or some members have to leave early.
Annual assessment of board performance. Periodically assessing board’s effectiveness is a critical factor in ensuring a good return on investment. Each year board should set performance goals and define their criteria for success. At end of year CEO and board should assess it’s performance, compared to its goals and criteria for success. Over 80 percent of all private companies are operating without a board of advisors or board of directors. Odds are your competitors do not have one. Because of this, developing a board of advisors can give your company a distinct advantage over your competition. This is particularly true for start-ups and family run businesses. There is tremendous value in receiving objective, knowledgeable advice from a board of advisors who share in financial and equity growth of your business. I encourage you to begin recruiting your advisory board today!
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