WHY EVERY BUSINESS REQUIRES AN ADVISORY BOARD

 Recently a youth approached me for advice on how to grow his business. It had stagnated and it worried him. I asked him if he had advisors and he struggled to respond. The question is are our businesses safe without advisors to provide guidance in these turbulent times?

Uganda is privileged to be one of the most entrepreneurial countries in the world. The question is, why do most of Uganda's small businesses collapse within two years ? Could it simply be due to lack of access to affordable finance or there are so many other underlying factors?  A close look at most of the companies that have grown into formidable enterprises shows that they had clear management structures. One of the factors that was cited as the challenges faced by Ugandan small businesses in the Uganda Business Development Strategy of 2024 is that they lack business management skills. Most of the small businesses though have potential to grow lack business plans to guide their business operations. A question is, at what point should a microenterprise acquire a loan? Most of such important decisions are made at the discretion of the entrepreneur. There are few checks and balances and entrepreneurs are bound to misallocate company resources since there is no accountability . At what point should a small enterprise decide to expand? These important decisions require oversight of experienced advisors. 

In a nation where over 70% of the population is below 30 years it is critical that they are guided into becoming seasoned entrepreneurs. So many youths have started enterprises or others want to start but they lack the belief that they can make it happen. It is critical that they are supported. This is because it is not an easy task to bring a business idea into life. However starting a business is not an indicator that this business will stand the test of time. This explains why every business requires an experienced board of advisors. It does not have to be paid but there should be some group of people who can provide strategic advice to the business.

HOW TO PROMOTE LEADERSHP GROWTH IN A BUSINESS

1.The entrepreneur should be humble enough to accept advice

2. The entrepreneur should invest in life long learning

3.It is important to recruit the right people\

4.The organization should become a learning organization

5.The organization should develop a business plan

6. The entrepreneur should seek technical support from organizations such as Enterprise Uganda

7. The entrepreneur should set up a board of advisors


Everything rises and falls on leadership. Whereas Uganda is credited for being one of the most enterprising countries in the world, the rate at which the businesses collapse is alarming. Could this be related to the fact that a number of them lack a team of advisors?


For individual and Corporate financial literacy training contact :


Coach Phillip Kiryowa

Personal Finance Coach (CMA)

Master Trainer, Bank of Uganda 

Founder, Advanced Empowerment Link

0752615916

For Financial Freedom and Sustainable Enterprises

Comments

Post a Comment

Popular posts from this blog

ACRE OF DIAMONDS

 According to Dr. Dennis Kimbro in his book Think And Grow Rich  every human being is an acre of diamonds. In simple terms we have more potential than we can imagine. With adequate self reflection this statement can change any person's life. It is Dr. Myles Munroe who noted that without knowing our purpose on earth we are likely to lead a less impactful life. The question that has been asked by many leading scholars is why are some people more successful than others? Is it family background? Is it luck? Is it the country where they were born? Unfortunately no body has a clear answer to this contradicting question. Hellen Keller was born blind but by the time of her death she was a very successful leader. Oprah Winfrey had a tough childhood but is now one of the most influential leaders in the world. Nelson Mandela was imprisoned for 27 years but became the president of South Africa. From the above case studies it is important for each one of us to learn a lesson. We have more...
Read more

A SAVINGS PLAN CAN AID IN FINANCIAL ADVANCEMENT

 I remember during the Trainer of Trainers training conducted by Bank of Uganda we were encouraged to develop a savings plan. This was a key development because without a plan we may live in financial darkness. In my years of providing financial literacy across the country especially youths I have observed that the intangible practices that may be undermined play a big role in the big picture. I have been asked a question, "how can one save yet their needs exceed their income?. It is a tough question but the best practice remains that even in the hardest of circumstances we should prioritize saving .This is because we do not know what the future holds. As humans we forget so fast. Who remembers during the lock down of Covid-19 when people were not working. Life was extremely tough. It was an opportunity to reflect about the importance of savings during good times. A savings plan enables a person to determine why they are saving. It could be for school fees, buying a plot, a car an...
Read more

WE CELEBRATE GRADUATION BUT AFTER THAT WHAT NEXT ?

 Uganda is officially dominated by young people. Over 50 %of the population are youths. With a high population the job market also shrinks yet people need to survive. It is the means of survival that create social pressure. The unemployment dilemma in the country can be dissected from different angles and each person or all stakeholders have a critical role to play.  Universities and other institutions of higher learning produce over 300,000 graduates per year. The job creation rate is about 70,000 jobs per year. This means that the job market is narrow. It is a common sight to see over 100 applicants for one job. This is a signal that something drastic must be done to change this trajectory. Development partners such as government, private sectors and donors such as Master Card Foundation are playing a critical role in addressing youth unemployment. In fact this suggests that fight against youth unemployment must be multifaceted.  During graduation season it is justifiab...
Read more