Today, they happen to be talking about cutting expenses. Next month, the subject may be marketing strategies, compensation, or succession plans. What brings them together is a common desire to grow their small businesses. This is a peer group for small business owners. It functions like an advisory board for entrepreneurs and business owners, allowing leaders to meet monthly to share challenges, solve problems, and identify opportunities. It is more important than ever when business is tough. Its always lonely at the top. Small business owners have no board to consult with or share decision-making. That makes it hard even in good times. But when the economy is soft, peer power is something one cant afford NOT to afford. The downfall of many small business owners is that they get so caught up in day-to-day activities, they forget their first roleas visionary. A peer group advisory board forces its members to step back and take the long view. Take member Bruce Behrstock for example. The president of Ace Hose and Rubber Company has been an advisory board member for six years. Were a small company. I dont have partners or an outside board of directors. This is my opportunity, once a month, to sit down and share ideas with other people who have similar business concerns. It helps me plan how Im going to grow my business. Fellow member Larry Kaufman agrees. The president of Kaufman, Ryal and Stral, a public relations and website design firm says, What I value about my board, he says, is that it forces me to organize the way I think about my business. My fellow members push me to act on the things I commit to do. Their success lies in what is called the power of peer power. In tight times, your primary goal is simple survival. And to survive, you sometimes have to do unpleasant things. Groups force you to follow throughits good ol peer pressure. It may be the only place your peers congratulate you for laying off people. Thats because such negative action may be necessary to your survival. However, a flagging economy is no excuse for poor performance. Theres a perception that because the external market is soft, individual businesses must all be soft as well. It doesnt have to be. Says Peter Flanzer, president of Cedar Hills Associates, an investment advisory firm, The economy doesnt affect your bottom line as much as the way you run your business does. Its wrong to throw your hands up and blame in on the economy. There are usually actions you can take. The typical advisory board member is an entrepreneur who not only wants to grow his or her business, but is willing to accept and give criticism freely. Although members come from a wide range of white and blue collar industriesranging from manufacturing and distribution to service industries and professional servicesmost generate $2 - $5 million in annual revenues. In addition to the camaraderie, members appreciate the fact that their board forces them to set goals, address issues, and define problems. Can you do it on your own? Sure. Are you likely to? No. |
