Do You Need an Outside Board of Advisors?
Are you starting to think about transitioning leadership and/or ownership to the next generation in your company? Is the next generation really ready to assume those responsibilities? Are you the only role model the next generation has to follow? Is it possible the next generation would benefit from some new ideas and the introduction to new contacts as they begin to prepare to assume control of your company? If the answer to any of these questions is “yes,” then perhaps you need an outside Board of Advisors.
Increasingly, many of the companies that our firm works with have asked us to join with an outside accountant and bonding agent, both experienced in construction, to help guide the next generation of company leaders. What does an outside Board of Advisors provide? It provides: (1) decades of experience in the construction industry coming from different perspectives; (2) hundreds, if not thousands, of contacts with other construction firms that can provide synergy and/or a pipeline of potential clients for the company; (3) ideas taken from other similarly-situated construction companies to provide a fresh approach and new ideas as to how the company can be structured to market and maximize profits; (4) a buffer between the generations to limit the friction that occurs when a new generation starts exerting its influence; and last, but not least, (5) help in developing a business plan that will force the new generation of leaders to define clearly how the company should be positioned and on what markets the company should concentrate.
How does a Board of Advisors work? Meetings are held either quarterly or semi-annually for a part of a day or an entire day. At each meeting, the current leadership explains the present financial status of the company and a discussion ensues about other options (markets, personnel, new technology, etc.) that the Board has seen while representing others. Boiled to its essence, the Board of Advisors provides a company with peer review and guidance, without joining a peer group. The Board of Advisors can do in-house seminars on issues such as contract negotiations, claims documentation, proper accounting methodology, and the company’s standing in the marketplace. Moreover, the Board of Advisors, by being more involved (rather than only being called after a problem has arisen) can help guide the company away from pitfalls before they happen.
Cohen Seglias currently sits on the Board of Advisors of many companies in the construction industry, both locally and nationwide, and has seen firsthand the fruits that a Board of Advisors can bear to members of the construction industry. If you are interested in learning more about how a Board of Advisors could work for your company, do not hesitate to contact our firm.