Non execs — why every business should have one

One of the main reasons some businesses stay small is because they continue to think like small businesses. This is the problem of spending too much time in the engine room and not enough time on the bridge, or as one non-exec less charitably put it - spending too much time in the trenches.

We have tried to get round this by bringing outsiders into the business. This has ranged from a non-executive adviser, business mentors, a client, my dad or anyone in the pub who couldn’t run away fast enough. We would bounce all our problems off them in return for a nice lunch (and that means the full McHappy Meal with Pokemon stickers). We’ve found people like being useful and giving advice. It’s not fair to tell them you will never listen to their advice.

We now have Colin; a non-executive adviser from the Company Growth team and we’ve found him fantastic. Scottish Enterprise is also setting up a mentoring scheme putting experienced business people in touch with growing companies.

So what should you look for in an adviser? The most important thing for us was good chemistry. Colin qualified as an accountant and a lawyer and was group finance director of large English publisher, but most relevant for us was that he had started, ran and sold his own business so we respect his advice.

It is also helpful to start someone off with a clear and defined project. This gives you a courtship period rather than plunging straight into business marriage. I may seem to be going off the tack here, but it has to be said that Colin’s chemistry does cause a shifting in certain seats in the office when he comes in.

An adviser needs to be a steady hand and not get overly involved in the nitty gritty. Colin gently nudges us from our more way-off plans, and focuses us back on the basics. This is not to say he pours cold water on our ideas, but when my previous businesses have included an event organiser called ‘Let me Hold Your Balls for You’ and a lentil wholesaler, you can see that a little scepticism is well placed.

It also ensures that we have regular meetings. Colin, Ruth and I meet every month to have our rather pompous sounding Management Board Meetings, but it is an essential moment to look at those niggling details like profitability. We also compare this back to our business plan. This is not an exhaustive document, but the planning process itself is very useful.

Of course it is important not to get carried away with all this planning nonsense. As Ross Perot memorably put it - ‘if you see a snake – kill it, don’t appoint a committee on snakes’.