Large businesses have boards of directors to help guide them through strategic stages and fiscal decisions. Small businesses have limited options and tend to rely on members of the company for advice.

Yet small to mid-size companies without access to official boards can pursue the next best thing. They can consult a peer advisory group, create a mentoring relationship, or establish their own improvised advisory boards.

Explore your peer sphere

These days, entrepreneurs have more opportunities to reach beyond their in-house management teams for business insights. One such way is to consult a peer advisory group.

Advisory groups bring together executives of non-competing, privately owned companies to share business wisdom and act as sounding boards. Generally led by a facilitator, the groups meet to discuss a variety of business challenges faced by their members.

Because they’re peers, they can offer valuable advice based on their collective education, expertise, and experience. Because they’re impartial, they can also challenge a business owner’s perspective, help put together practical strategies, and encourage accountability for progress. 

If joining an advisory organization isn’t suitable, consider a business mentor for frequent one-on-one consultations. A mentor should be an experienced business person who can provide trusted guidance and offer informed advice. Obviously, it should be someone who has achieved a certain level of business success and is willing to share his or her time and talents.

To find a mentor, consider participating in local networking groups that provide exposure to a variety of business executives. Read local newspapers, trade publications, and business journals for the latest business developments, promotions, advancements, and other news that can point to someone well suited for mentoring.

Build your own board

Small businesses may not warrant formal boards of directors, but they can create their own advisory boards.

Because advisory boards aren’t official or legal entities, a company can exercise flexibility in creating one. An entrepreneur can develop a board to regularly keep the company abreast of marketplace, legal, and financial trends that might affect the business, or simply rely on members for operational assistance as needed.

The best advisory boards are comprised of professionals who can complement existing management resources. No project managers or marketing specialists in-house? Add them to the board. Doing so will broaden access to business intelligence and help address important questions such as, “What’s the most effective implementation approach?” and “What’s the right mix of marketing communication materials for our business?”

Successful entrepreneurs from other industries also make good board members. They understand business basics and can view operations with a fresh perspective. And if they started out as small business owners themselves, so much the better.

Whether through peer groups, mentors, or tailor-made advisory boards, good advice is out there. Smaller businesses that tap into the resources can share in the strategic advantages bigger companies enjoy.