For a business owner, its often difficult to decide what prudent decisions should be made to advance a business. Whether its managing overhead or payroll, there are many facets to consider.
Most business owners are lucky then, that they can turn to either a board of directors or a board of advisors. According to Entrepreneur Magazine, a board of directors “is a legally appointed group of corporate managers with a fiduciary duty to represent the interests of a company’s shareholders. This role comes with enormous rights and influence over a company’s strategy including the hiring or firing of the CEO.” This may be compared to the role of a board of advisors, who are “an unofficial group of mentors that helps your company strategize, problem solve, or, really, anything else. Advisors are fluid both in their commitment to a startup and how you define their role.”
While there are differences between the roles of a board of directors and a board of advisors, there are areas of overlap. In both cases, the board will consist of individuals that have a strong, vested interest in the business. Moreover, these individuals are generally busy with their own projects, and bring in industry expertise from a variety of different professions.
David Chait, co-founder and the CEO of Travefy, suggests that business owners take the time to find the most valuable members of their board. “Set yourself up for success and identify the best board member among your investors who will both champion your team and product but also challenge you to be better…[Some] criteria [to consider includes] invested capital, company involvement, domain expertise and miscellaneous outstanding factors like partnerships and additional resources. Also think through qualitative factors like relationship dynamics,” Chait said.
It’s also important to consider the fact that advisors should serve in a formal, structured capacity. Jessica Alter, CEO of FounderDating notes, “We can’t stress enough the importance of this process [of formalizing a business owner’s relationship with an advisor]…If you’ve found one who really has the skills to help you and that you mesh with put your affiliation on paper. Use the opportunity to align your perspectives and long-term goals for your company. Remember, your advisor isn’t here for the money but to help you create your vision. Establishing him or her as a formal part of your team is a critical to making the relationship work on both sides. ”
With invoice factoring, Capital Solutions can advance up to 80–90% of the invoice prior to the customer paying so that business owner can use those funds at his or her discretion. Purchase-order financing is a great choice for businesses that have orders ready to fulfil, but lack the cash flow to pay the supplier up front. Finally, Capital Solutions also offers asset-based loans. Asset-based loans are more difficult to qualify for than factoring, but decisions can be made faster and issues resolved sooner than securing a loan through a bank.
Capital Solutoins, Inc. has the experience to help your business succeed. For more information on any of the financing options offered by Capital Solutions, Inc., call 1-800-901-3299 or click on the Contact Us tab and fill out the necessary information.