The Advantages of Using Advisory Boards for a Shoe Retailing Business
By Alan Miklofsky
September 4, 2024
In the ever-evolving world of retail, shoe businesses face unique challenges—from shifting consumer preferences to supply chain disruptions. For family-owned shoe retailers, navigating these complexities can be especially daunting. One strategic approach that can provide significant benefits is the formation of an advisory board. Unlike a traditional board of directors, an advisory board offers guidance without the legal responsibilities, making it a flexible and powerful tool for business growth. Here’s why incorporating an advisory board into your shoe retailing business could be a game-changer.
Advisory boards are typically composed of individuals with extensive experience in areas such as retail, finance, marketing, and operations. By assembling a team with diverse skill sets and backgrounds, a shoe retailer can gain valuable insights and advice tailored to the industry. For example, an advisor with deep knowledge of supply chain management could provide strategies to mitigate delays or optimize inventory, while a marketing expert could help refine the brand's online presence. This breadth of expertise allows the business to address challenges from multiple angles.
An advisory board can play a critical role in the strategic planning process. By offering objective advice, board members can help shoe retailers define their long-term vision and set achievable goals. They can also assist in identifying emerging market trends, such as the growing demand for sustainable footwear, and help the business pivot to meet these new demands. With their guidance, the retailer can build a roadmap that aligns with both the company's values and market opportunities, ensuring longevity and success.
One of the often-overlooked benefits of having an advisory board is the networking opportunities it brings. Advisors who are retailers or business owners typically have extensive professional networks that can open doors to new partnerships, suppliers, or even potential investors. For a shoe retailer, this could mean securing a better deal with a supplier, finding a collaborator for a co-branded collection, or even discovering a new market segment. Leveraging these connections can provide a competitive edge and help the business expand its reach.
Running a family-owned shoe business often involves making decisions that can be clouded by personal biases or emotions. An advisory board brings an external, objective perspective that can help owners stay focused on the business’s best interests. By regularly reviewing the company’s performance and providing constructive feedback, the advisory board can hold the management team accountable to their goals, ensuring that the business stays on track and makes informed decisions.
For many family-owned shoe retailers, succession planning is a critical but often neglected aspect of business management. An advisory board can assist in developing a clear succession plan that ensures the smooth transition of leadership. Whether the goal is to pass the business on to the next generation or prepare it for sale, advisors can offer guidance on how to groom future leaders or make the business more attractive to potential buyers. Their involvement can also ease the emotional and practical challenges that often accompany succession planning.
While hiring full-time consultants can be costly, an advisory board offers a more cost-effective solution. Advisors are typically compensated with honorariums (and in larger businesses equity stakes) rather than full salaries, making their advice and expertise more affordable. This allows the business to tap into high-level consulting without the hefty price tag, providing excellent value for money.
Incorporating an advisory board into your shoe retailing business is a strategic move that can yield numerous benefits. From enhancing strategic planning and accountability to providing access to invaluable expertise and networks, an advisory board can be the key to navigating the complexities of the retail environment. By leveraging the strengths of experienced advisors, shoe retailers can not only survive but thrive in a competitive market.
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Alan Miklofsky is a semi-retired Professional Shoe Dog with a distinguished career in the footwear industry. Over the decades, he successfully ran an award-winning shoe business while dedicating 29 years to the National Shoe Retailers Association (NSRA) Board of Directors, including serving as Chairperson from 2009 to 2011. Today, Alan channels his expertise into creating content on issues vital to independent shoe retailers and offering consulting services with a focus on financial oversight. Learn more about Alan Miklofsky on LinkedIn.
mikofskyalan@gmail.com
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