Hour 6: Advisory Boards & Business Relationships

The 9-Hour Small Business Tune-Up: Hour 6

This section is for small business owners and managers who want stronger relationships. That means the people who advise you, and the customers, suppliers, and employees who keep the business running.

It covers how to build an advisory board. It also covers how to strengthen relationships with customers, suppliers, and employees through better communication and common goals.

Advisory Boards

As much as you think you know your business, a fresh set of eyes can see things you can’t. To see how this works, just get two people to watch a movie together and then ask them about it.

Each one will give you a different description of what they felt, saw, and experienced. Although the two versions will be similar, they won’t be identical. Everyone processes things differently and has different views, experiences, and ideas. As business owners, we can benefit from these different points of view.

An advisory board is an essential part of the team. In a 2024 member survey, 91% of business owners said their peer advisory board helped them make better decisions.

You should have different people helping you with issues such as financing, new projects, expansion, human resources, legal issues, and so on. Your board should consist of people you can trust.

It may take a while to find the right combination of people, but it will be worth it in the end. Board members don’t have to be employees. You can create a board that only convenes when needed, or you may need to have them available on a full-time basis. Do whatever is most effective for your business.

Some Tips for Your Board

Your board can consist of a large number of people. You don’t have to meet them all at the same time.
Keep in mind that your board is advisory. Listen to their advice, but remember that the final decision must be yours. You are in charge, and responsible for all outcomes.
If a matter is complex, you can always get a second and third opinion.
Board members should be asked only to focus on their particular areas of expertise. If one of your advisors specializes in financing, don’t ask him for advice on a creative idea. He may throw you off course.

Exercise: Planning an Advisory Board

1. List the departments in your business that would benefit from an advisory board.

2. For each department, list those people who you would like to have on your board.

3. Briefly describe how your business would benefit from the expertise of the people you listed.

Once you have completed this exercise, plan to contact the people on your list to determine if they would be interested. If they are, discuss their terms. Be prepared to search for replacements for those who don’t wish to participate. For each business issue that comes up, contact the people on your list and ask for their advice.

Business Relationships

Relationships are important in business. Many business owners overlook this. Your customers, suppliers, and employees mostly care about one thing: themselves. They want to know, “What’s in it for me?”

Keep that in mind. Aim for outcomes that work for everyone, while still emphasizing what’s in it for the other person.

If you focus only on your own desires, you risk losing customers, suppliers, and employees. Put their interests first, while still protecting your own bottom line, and those relationships tend to last. Running a business still requires control and profitability, so look for solutions that work for both sides.

Your business relationships fall into three categories: customers, employees, and suppliers.

Exercise: Improving Customer Relations

Customers are the lifeblood of your business — without them, you have no business. It’s also easier, and cheaper, to sell to an existing client than to win a new one. According to Harvard Business Review research cited in a 2025 industry analysis, acquiring a new customer can cost up to five times more than retaining an existing one. An existing client already knows and trusts you.

List Ways in Which You Can Improve Customer Relations

Below are some examples to help you get started:

Provide a comfortable atmosphere for your customers.
Complete your transactions more quickly.
Give 60 days of interest-free credit.
Handle customer complaints yourself when you can. (Customers can help you by pointing out flaws in your business that you may not have noticed.)
Provide customer service training for your staff.
Create a “Customer Appreciation Sale” and focus on benefiting the customer during this event.
If needed, hire more people to help your customers.
Have regular staff meetings to discuss customer concerns and feedback.
Have brainstorming sessions to explore ways to improve your business.

After you have completed this exercise, you should have several ideas about how to improve your customer relations. If you want even better results, ask your customers how you can improve.

A dialogue with your customer might sound like this:

“Hi Jack, it’s Acey calling from A Touch of Business.com. I am touching base with some of our members. I just need five minutes of your time. Is this a good time to talk?”

“Sure, go ahead.”

“First of all, I wanted to say thanks for your business. We’re glad to have you as a member. We’re constantly striving to enhance our business so that we can better serve our members.”

“I’m glad to hear that.”

“I would like your opinion on how we can improve the business so that it will benefit you even more. Is there any product or service you can think of that you would like us to provide? Is there anything that we have done that you are upset or unhappy about?”

During the call, take notes. Afterward, create a list of the most important points.

Exercise: Improving Supplier Relations

Remember, you are your supplier’s customer. Your supplier wants your business and must be able to make a profit in order to keep supplying you. There are many ways you can improve supplier relations.

Squeezing a supplier for rock-bottom prices, without letting them profit or increasing how much you buy, can backfire. The supplier may eventually stop doing business with you. Or they may cut costs somewhere else in a way that ends up hurting you.

On the other hand, if you get the best deal possible while allowing the supplier to still make a profit, you will end up with a better relationship in the long run. Think of practices that benefit both sides, and the relationship gets stronger.

List ways to improve supplier relations.
Some examples to help you get started:

Meet with your supplier to discuss ways to improve your business relationship.
Make immediate payments in exchange for better prices.
Pay your invoices on time, or early when you can. It builds trust with your suppliers, which is the foundation of a stronger long-term relationship.
Purchase more products in exchange for exclusivity.
Allow suppliers to promote their products through your business.

Exercise: Improving Employee Relations

Your employees are an important part of your business. They know a lot more about your day-to-day operations than outsiders do. You have trained them, and they are essential if you want your business to run smoothly.

One of the main problems with owner/employee relationships is that employees feel unappreciated. Showing a little appreciation goes a long way with employees. In fact, a 2026 industry report found that nearly 8 in 10 employees who quit their jobs point to feeling unappreciated as a key reason for leaving. Search for ways to make employees want to be more productive rather than pushing them for more productivity.

For example, let them know when they do a good job. “John, I just wanted to say thank you for the way you handled that customer. We didn’t have the item in stock, but you found a way to get it to him within two days. Putting forth that extra effort helps us keep our customers. Good job!”

Another important practice is helping employees understand the importance of their jobs. They might think that the way they do their jobs doesn’t affect the business.

Walking them through the complete business process will help them understand how much their jobs impact the entire company, and it could make them want to be more efficient.

For example, if you have an employee whose job is to test a product you manufacture, try explaining how his job keeps people from getting hurt, and can even save lives. His job makes the product usable for thousands of people.

If you were this employee, wouldn’t this information give you pride in your work, and cause you to be more careful as you’re doing it, instead of just filling your quota or putting in your eight hours?

List Ways You Can Improve Employee Relations

Some examples to help you get started:

Have meetings to hear my employees’ concerns regarding both the business and their working conditions.
Make sure working conditions are good for the employees.
Educate employees about the importance of their jobs.
Create feedback forms that employees can fill out if they have any complaints.
Announce that your office door is always open for employees who wish to discuss any concerns.

Make a list now of ways you can improve employee relations.

Key Points and Facts About Business Relationships and Advisory Boards

An advisory board gives you outside perspective and accountability. In a 2024 survey, 91% of business owners said it led to better decisions.
Board members advise. The final decision, and the responsibility for the outcome, is always yours.
Retaining an existing customer is far cheaper than winning a new one — up to five times cheaper by some estimates.
Feeling unappreciated is one of the top reasons employees quit. A 2026 report found roughly 8 in 10 departing employees cite it.
Paying suppliers on time builds trust, which is the foundation of a stronger long-term relationship.
Business relationships work best when both sides benefit, not just one.

Action Steps for Business Relationships and Advisory Boards

Build Your Advisory Board

List the departments in your business that would benefit from outside advice.
Identify trusted people for each area — financing, legal, marketing, expansion, and so on.
Reach out, discuss terms, and set a meeting schedule that fits your needs.

Strengthen Customer Relationships

Pick two or three ideas from the list above and put them in place this month.
Call a longtime customer and ask what’s working and what isn’t.
Track complaints so you can spot patterns, not just one-off problems.

Strengthen Supplier Relationships

Review your payment timelines and pay on time or early where you can.
Meet with your key suppliers to discuss the relationship, not just the order.
Look for opportunities to trade volume or exclusivity for better pricing.

Strengthen Employee Relationships

Hold a regular meeting where employees can raise concerns.
Recognize one specific thing an employee did well this week.
Explain how each role connects to the bigger picture of the business.

Checklist for Business Relationships and Advisory Boards

Advisory Board
- List departments that need outside expertise
- Identify trusted candidates
- Reach out and confirm terms
Customer Relationships
- Choose two or three ideas to implement this month
- Schedule a feedback call with a longtime customer
Supplier Relationships
- Review payment timelines
- Meet with key suppliers to discuss the relationship
Employee Relationships
- Schedule a team meeting for feedback
- Recognize one employee’s specific contribution this week

FAQ: Business Relationships and Advisory Boards

Do I need to pay everyone on my advisory board?

No. Board members don’t have to be employees, and a board can meet only when needed rather than full-time. Choose the structure and compensation that fits your business.

How large should my advisory board be?

As large as you need. Cover different areas, like financing, expansion, legal issues, and human resources. You don’t have to meet with everyone at once — bring in the right person for each issue.

What’s the fastest way to improve customer relationships?

Ask your customers directly what’s working and what isn’t. A short phone call, like the example above, often surfaces more useful feedback than guessing on your own.

Why do employees leave even when pay and performance are fine?

Feeling unappreciated is one of the most common reasons employees give for quitting. Regular, specific recognition — telling someone exactly what they did well — helps address this.

Does getting the lowest possible price from a supplier help my business?

Not necessarily. Squeezing a supplier too hard can push them to cut corners elsewhere or stop working with you. A fair price that still lets your supplier profit tends to build a stronger, more reliable relationship.

References:

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