Selecting Advisory Board Members – How Important is Family Business Experience?

Textbook theory will advise you to resolve your family issues before forming an advisory board. It’s most commonly referred to as “keeping the family baggage out of the business.” Ideally this should happen, but in real-life it rarely does.

Experience shows us that family issues usually spill into the business and this is just part of being a family business. You should diminish these personal issues as much as possible, but don’t expect to eliminate them entirely.

Ideally we would like to keep advisory boards free of these issues. In reality many of the family issues are intertwined in the business and are the cause for many of the obstacles in implementing new initiatives and strategy. Even though the major topics will focus on non-family issues, inevitably you will discover that family issues will creep in often as hidden issues. Many advisory boards are setup because the family has difficulty communicating, reaching consensus, and afraid of hurting each other’s feelings.

Understanding that we need to deal with some of these family issues with the advisory board will influence the makeup and chemistry of the advisory board members.

Importance of Family Business Experience

In addition to selecting members who can bring some new skill or experience to the board, also consider bringing in members who may belong to other family businesses. Even though family issues will be a minor topic, it helps to have members with some background in family business to better relate and be more patient with the family.

Choosing board members with some family business experience can help.

Entrepreneurs Face “Field of Dreams”

Entrepreneurs Face “Field of Dreams”

Family Business Forum News
by Jim Klaes

Rieva Lesonsky, Editor in Chief of Entrepreneur Magazine, spoke to members of the UTEP Family Business Forum about her own personal experiences growing up amid two family businesses during a luncheon address at the El Paso Club on Friday, March 10.

Ms. Lesonsky, who was appointed to the Small Business Administration’s National Advisory Council in 1994, has been associated with all types of business–family and otherwise–during the course of more than a dozen years with Entrepreneur.She also is a frequent guest on national television shows, such as “Oprah,” speaking about a variety of topics such as women in business and family business.

Lesonsky told how growing up in the world of family business differs from the real world.”I never heard of working 9 to 5 until I was almost out of high school,” she related.”I thought all dads worked on Saturdays.”Her father and one grandfather owned a men’s clothing store, while her other grandfather owned a liquor store with her uncle.Both businesses, however, failed. More…