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CHAPTER SEVEN - ORGANIZATIONAL STRUCTURE

This chapter is intended to give you the information needed to structure your organization. The obvious assumption is there will be more than one person operating in the company. The goal is to address the various questions that an entrepreneur will have relative to working with others in the organization and establishing a decision-making hierarchy for the company.

Advisory Board - One of the first things that an entrepreneur should do it establish an advisory board for the organization. This should consist of experienced individuals who can advise you both about how to run your company, but ideally are also very familiar with the product category in which you are operating. There are many ways of getting advisory board assistance, such as:

 Friends, family or business colleagues who have experience in business and/or the product category you are entering. The most important criteria for them are that they are knowledgeable, and will be objective when providing advice to you. The last thing a new business owner needs is an “advisor” that simply agrees with everything you say or do, just because they don’t want to hurt your feelings

 Utilizing the services of a free consulting service such as SCORE. The counselors in our SCORE chapter function as advisors to hundreds of small companies aiming to provide them with guidance to help them be successful. There are 364 SCORE chapters throughout the United States with more than 14,000 counselors who are waiting to hear from small business start-ups to provide assistance. To reach these counselors go to www.score.org. This website will direct you to the chapter closest to where you live or work.

 Working with a university professor as a class project. Many of the business schools in this country are seeking real businesses to work with so their students will gain real world experience before they graduate. Often they can provide excellent help to a new venture both in terms of organizational assistance and operational functionality.

 Hiring an independent consultant to work with you on the project. Depending on your approach, this can be very economical or extremely expensive. Often retired executives or university professors will take on small assignments for a very modest fee. However, if you retain a full time consulting firm it could be very expensive, with some consultants charging in excess of $1000 per day for their assistance.