Louise Broekman from Advisory Board Centre on maximising business exit value with an Advisory Board.

In this episode of the Small Business Banter podcast I'm joined by Louise Broekman, CEO and founder of Advisory Board Center. We cover the importance of strategic decision-making in business, but specifically the role of advisory boards in exit planning.  

Key messages for #businessowners #founders #familybusinesses from Louise include the importance for shifting from on-the-run decision-making to a more thoughtful and how Advisory Boards;

• provide a space for businesses to think and problem-solve over a 90-day period
• help business owners  make confident decisions that focus on long-term investment and growth
• provide benefits including external perspective
• support strategic decision-making
• help  navigate the complexities of exit planning

"To grow means that the business needs to be different, which means that the way that we make decisions on day-to-day things needs to be different" - Louise Broekman

Louise has a compelling  20+  year journey as a business owner, entrepreneur and advisor. 

Timestamped summary of this episode:
00:01:18 - Background of the Advisory Board Center, 
Louise explains that the Advisory Board Center is a professional body for the advisory board sector, focused on best practices and ethics. They offer membership and certification for advisory board professionals, and operate in over 25 countries.

00:03:35 - What is an advisory board, 
Louise distinguishes advisory boards from governance boards, explaining that advisory boards are focused on problem solving and thinking, rather than decision making. They provide business owners with a second set of ears and different perspectives to help them make confident decisions.

00:08:41 - Types of businesses using advisory boards, 
Louise discusses the wide range of businesses that use advisory boards, including startups, mid-sized businesses, family businesses, partnerships, and those looking to exit or scale. She emphasizes that the market is growing and that businesses are starting to adopt advisory boards at an earlier stage.

00:15:07 - The Importance of Making Decisions, 
Making decisions on the run can be addictive and fulfilling, but to grow a business, different decisions need to be made. An advisory board can provide the space and time to think through decisions and explore different options, transforming it from a working capital discussion to an investment conversation.

00:16:45 - The Addictive Nature of Busyness, 
The busyness of running a business can feel satisfying, but it's important to focus on the top strategic issues that will truly change the way the business operates and performs. The key is to concentrate on the decisions that will have a significant impact and prioritize them over other tasks.

00:18:14 - The Need for Guidance and Confidence, 
After experiencing a challenging business situation, the guest realized the importance of having good people around her and gaining confidence in her decision-making process. By creating an advisory board, she sought outside perspective and support to make more informed and strategic decisions.

00:23:17 - Using Advisory Boards for Exit Planning, 
Advisory boards can play a crucial role in exit planning, whether it's evaluating the decision to sell, preparing the business for sale, or maximizing the asset value of the business. They can provide external perspective and guidance to help owners make the right choices and achieve successful outcomes.

00:26:57 - Exploring Alternative Exit Strategies, 
Exit planning shouldn't be limited to a binary decision of selling the business. There are various options to consider, such as staged exits.

00:30:42 - The Importance of Having a Clear Plan, 
It is crucial for business owners to have a clear plan and some ideas about what they would do after selling their business. Without a plan, an identity crisis can occur after leaving the business.

00:31:24 - Shortcomings of Exit Planning, 
Exit planning often focuses on financial aspects, but fails to address the question of what the owner wants to do afterwards. It is important for owners to seek advice from others who have been through the experience and explore different options.

00:32:10 - Alternatives to Selling, 
Some business owners may fall back in love with their business after preparing it for sale, leading them to reconsider selling. Other owners may choose to maintain a smaller business or scale back to focus on income rather than revenue.

00:33:46 - The Value of Advisory Boards, 
Advisory boards can bring many advantages, such as a network of contacts, industry experience, and unemotional detachment. They can provide objective frameworks, accountability, and help owners see their business from a buyer's perspective.

00:37:21 - The Importance of Outside Counsel, 
Owners should consider seeking outside counsel to help them navigate the challenges of running a business. It is important to have someone who can hold them accountable, provide objective advice, and help them focus on what really matters.
 

The resources mentioned in this episode are:

 @Advisory Board Centre  - there you can learn more about their services, how they can help your business and explore the membership model offered by the Advisory Board Centre to become a credentialed advisory board professional and join a global community of like-minded individuals

Connect with me here:

@michaelkerr @smallbusinessbanter 

Thanks for listening.  Visit the Owner To Owner Podcast website to subscribe, listen back, or check out any resources or information mentioned on the show.

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Reach out to Michael Kerr via the website if you need personal assistance or advice for your small business.

michael.kerr@kerrcapital.com.au

www.ownertoownerpodcast.com.au