Watch this episode to get an inside peak into the biggest difference between a Board of Directors and a Board of Advisors, and how to locate the most valuable people to sit on your Board (it’s easier than you might think if you follow the formula I lay out in this episode).
It’s true, the SINGLE GREATEST ASSET I’ve build into any of my companies is a BOARD. That can be a Board of Directors, a Board of Advisors… or in our health companies, it can be a Scientific Board of Advisors.
Although we go through the step-by-step formula in this episode, the shorter version is…
You start with a target for where your company is going in the next 12-36 months.
Are you aiming at a certain revenue range, are you looking to sell, are you interested in acquiring other companies, are you going to be moving into other industries, or does your game plan include all those things???
List all your targets, plus list all the CORE COMPETENCIES, or the RELATIONSHIPS your company will need to reach those targets.
So if you want to sell your company, you’ll need to know how to position your company for a sale, and you’ll want to know all the landmines on that path and how to avoid them so you don’t get killed by taxes or get taken advantage of during the negotiations, and you’ll want to know where to put your money after the sale so you get to keep far more of it.
One of the main lessons I’ve learned is that if you sell your company the wrong way, you’re going to pay millions more in taxes. If I had access to someone who had sold a company before I sold my first company, I would have walked away nearly double the money in my pocket.
And that lesson cost a lot of money to learn, but I’ve built, sold and acquired more than a dozen companies since then and I never made that mistake again.
Because the next time around, I had a Board, and they made sure I knew how to handle every step of the process, and they introduced me to the right attorneys, and to the right investment team, and to the right people to take care of every step along the way.
So, the real lesson I learned from the sale of that first company, was that I needed guidance from someone who had a track record of selling businesses.
So, putting together a Board (whether it’s a Board of Directors, a Board of Advisors, or even a Scientific Board of Advisors) starts with a target for where your company is going in the next 12-36 months.
And a list of all the core competencies, or the relationships your company will need to reach those targets, and the final step is to make a list of the people you know who have those core competencies.
And don’t think you don’t know enough of the right people, because there’s simple ways around that you will learn in this episode!
Now, make your list, and TELL ME IN THE COMMENTS BELOW what some of key competencies you want in a person on your board.
Who knows, your best board member might be reading the comments as we speak :)
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Chris is an entrepreneur, investor, bestselling author, and business advisor to a handful of high growth companies. He has built four 8-figure companies, developed winning leadership teams across multiple industries, and designed business systems that predictably grow multi-million dollar brands. He’s been featured in financial periodicals such as: Success, Inc, Bloomberg, and in Entrepreneur as a top entrepreneurs of the time.