According to the Wall Street Journal, 60-80% of business owners don’t know what their financial statements are telling them. I know what you’re thinking. “That’s not me.”
Every business owner needs advice. What is especially helpful, though, is to have a select group of people that you know and trust who are not beholden to anyone. They are neither your employees nor your family. That’s not to say that these people can’t be depended on to give you unbiased advice, but there’s something special, something unique about a group of people that you have hand-selected to help you guide your business.
They are called Outside Board Members. They may include your banker, your accountant or your lawyer. Or they may include others that you consider trusted advisors, or people with special interests or unique knowledge. If your business is heavily into marketing, it might be someone from an advertising agency or a specialist in social media. If you are a manufacturer, it might be someone familiar with your specific manufacturing techniques or product. It might be someone that has special knowledge of your industry or your market’s distribution channels. Or, it might be an outside person that has been highly successful in building and running their own business.
The important thing about your Board of Directors is that they have the overall skill and experience to help guide you to some decisions of a strategic nature with your business. They should be able to look at your plans and ideas, your numbers, your financial statements, your aspirations, and tell you – in the cold clear light of day – what they think. What recommendations are they going to provide to you? What other experiences can they bring to light to help you make the decisions you need to guide your company into the future?
Your Board of Directors should not be looking at the day to day operations of your company, but at your plans and how they are reflected in your current reporting. Your budget, cash flow forecasts, product development plans, your possible exit strategy, any thoughts of mergers or acquisitions, product expansion, or new channels of distribution are all important things that your board can discuss and help you decide on the best direction for your company to take.
The skilled executives at CFO Simplified can help you establish a board that ideally and uniquely meets the needs of your company. They have the experience to join your board and provide you with the strategic financial advice that every company needs, helping you find the direction that is best suited to your business’s future success. Contact us today to learn more.
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