Director’s column: Get on board with creating a board

Have you thought about creating an advisory board or board of directors for your family business?

Is that as far as you have gotten? Thinking about taking action?

Let me provide you with a few reasons why you might want to consider taking action and creating a board.

As one generation begins to prepare to exit the business, an effective strategy is often creation of a board. Did you know that Prairie Family Business Association, our staff and our advisory board can be helpful resources as you create a board and look for potential board members? Just recently, we assisted one of our members with finding a new board member in a market where the business is expanding.

Just as a business grows and evolves, so does the governance of the business. The board serves a powerful role in growth, strategy, succession, accountability and expertise.

A board can be one of those $1 million decisions you as a leader make. The investment of time and resources in a board can pay dividends to you and the future leaders of your family business.

Next-generation leaders: Are you having difficulty getting your mom or dad, aunt or uncle to step away from the day-to-day management and decision-making of the business? Serving as a member or chair of the board, the exiting generation finds a new role that allows them to continue to make a big impact on the business.

Mom or Dad, are you struggling with how to step away from the day-to-day and what you will do with your day once you are no longer the decision-maker and the needed face of the business? Creating an advisory board or board of directors can be your lasting legacy.

I encourage you to take advantage of the resources of Prairie Family Business Association and your fellow members. Reach out to us at fba@usd.edu or 605-274-9530, and let us know how we can help you begin a conversation about a board, find prospective board members and provide you with a network of fellow family business owners who have experienced great success through board creation. We have relationships with more than 200 businesses that are involved in Prairie Family Business throughout the region. We are here as a resource network for family-business success!