C M Y K
8
SMALL BUSINESS MONTH - Supplement to The WInnipeg Free Press - Wednesday, October 21, 2015
A n advisory board may be the best kept secret for improving your business. A study conducted by the Business Development Bank of Canada (BDC) found that advisory boards produce huge benefits for small and medium‑sized businesses. As part of the study, BDC commissioned a survey of business owners about their experience with advisory boards. Most entrepreneurs (86%) who have an advisory board said it has had “a big impact” on the success of their company. BDC also asked Statistics Canada to analyze a sample of 3,900 BDC clients. The findings were clear and consistent. In the first three years after an advisory board was set up, companies experienced stronger sales growth (66.8%, compared with growth of 22.9% in the three previous years) and stronger productivity growth (an average of 5.9%, compared with 3.2% in the previous three‑year period). One company that has enjoyed important benefits from having an advisory board is Steelworks Design, run by Donald and Rhonda Barnet. In 2008-2009, the recession cost Steelworks half its sales for the custom machinery it designs and manufactures in Peterborough, Ont. The Barnets found themselves in a desperate fight to save their business. Yet, they resisted what would be the first staff layoffs in the company’s history. “We’re a small family business with friendships and relationships inside the company,” Rhonda Barnet says. “It was so difficult.” The Barnets’ advisory board challenged them to look at the situation and take decisive action. All three members of the board had experience as senior executives at other companies. “I was very, very emotional,” Rhonda says. “But if we didn’t make those decisions, everybody’s job was in jeopardy. The advisory board gave us the courage and the strength to go ahead.” The Barnets ended up laying off half the 18 people then working at the company. Steelworks survived and is now on an impressive growth trajectory, almost doubling sales in the last two years to $2.2 million. The staff now numbers 22, including 10 engineers. The advisory board has proved to be a continuing source of invaluable advice. It has counselled the Barnets on their efforts to diversify their business away from the auto industry. It also helped them improve their financial management and even shop for a new bank. “I think it’s one of the most valuable tools an entrepreneur could use,” says Rhonda, who was first introduced to the idea of an advisory board by a lawyer for the company, who helped her find a pair of local senior executives. Barnet’s mentor — her boss in a former job — rounded out the line‑up. The board agreed to meet quarterly with the Barnets free of charge for half a day. The group would review elements of the company’s strategic plan, including business development, financial management and human resources issues. Steelworks creates custom machinery for a diverse list of customers including General Electric, Hitachi, Siemens, Rolls‑Royce and PepsiCo. Exports make up about 30% of its sales and Barnet believes the company could grow to $10 million in sales in the coming years. An advisory board will be a big part of making that happen. “If we hadn’t initiated a board and grown in this way, we probably would have been a $1 million company forever, a Ma and Pa shop,” she says. “That’s not where we’re going.” ❚ Build a Brain Trust Grow a stronger business with an advisory board
Advisory board tips for entrepreneurs
• Seek out members with skills that complement your own and who have a genuine interest in your business’s success. • Look for members who are independent so you can get advice that’s not coloured by personal interests. • Keep an open mind to the differing perspectives of members and any challenges to your point of view.
Download the BDC study Advisory Boards: An Untapped Resource for Business at www.bdc.ca.
Buy a Business
Sell a Business
MANITOBA’S BUSINESS BROKER
AWARD WINNING PROFESSIONAL INNOVATIVE Now offering free consultations to business owners that would like to learn about our sales process, and to individuals that are looking to purchase a profitable business ● Business Sales ● Expansion ● Franchising ● Exit & Succession Planning ● Growth Strategy ● Venture Capital ● Business Start-Ups ● Valuations ● Business Plans
Make the Pitch
Got a great idea for a new business? I nnovate Manitoba invites entrepreneurs to apply for a spot at Pitch Day, at RBC Convention Centre Winnipeg on Nov. 18. Past participants in the annual event have attracted local, national and international attention, as well as startup capital. Prizes awarded at the end of Pitch Day include $7,500 for first place, $2,500 for second place, $1,000 for the people’s choice pitch and $500 each for best student, researcher, technology and social innovation pitches. As well, all the winners receive free entry to Innovate Manitoba’s Launch Pad Startup Skills Workshop. The application deadline is Nov. 9 and a preliminary round held Nov. 12 at Red River College will narrow the field to 15 finalists, who will make two-minute pitches to a panel of judges and an audience of local entrepreneurs and innovators on Nov. 18. Registration fees apply. The panel of expert judges includes Winnipeg Free Press business reporter Martin Cash, Manitoba Harvest Hemp Foods CEO and co-founder Mike Fata and Payworks president and CEO Barb Gamey. For information about Pitch Day and other Innovate Manitoba initiatives, visit www. innovatemanitoba.com. ❚
Call or email today to learn more
www.oconnorbusinessbrokers.com 204-960-7468 Email: info@oconnorbusinessbrokers.com
Powered by FlippingBook