Think your property management company is too small to need a board of directors or advisors? The truth is, even smaller corporations and LLCs can benefit from the guidance of a well-compiled board. Not only can these folks help your business reach its goals, but having a board can also provide some decent financial incentives. If you’re still not convinced that this is a path worth exploring for your company, here are four things that might just change your mind.
Boards can provide much-needed support.
Let’s face it. Being an entrepreneur can be lonely. Even if you have employees who report to you or a network of friends, family and colleagues who support you, running a smaller property management company can sometimes feel like an island. A board of directors (or board of advisors) gives you access to a team of professionals with whom you can discuss your goals and objectives and receive constructive, supportive (and often invaluable) advice.
Boards provide attractive tax incentives.
Whether you meet with your board once a month, once a quarter or once a year, these gatherings will essentially serve as corporate trips for which the travel, dining and entertainment may be a write-off. It can be as simple as a night out for dinner or something as extravagant as a trip to Vegas. As long as you are legitimately meeting with your board for work purposes, your accountant should be able to help you get some tax breaks when it comes time to file. Just be sure to take notes and don’t go overboard.
Boards can help with asset protection.
Experts recommend meeting with your board of directors or board of advisors at least once per year (though it can certainly be more often). During these meetings, you’ll be talking about the state of your property management business and your objectives. What you’ve bought. What you’ve sold. Who you’ve hired. Who you’ve fired. Most importantly, you’re going to be writing these things down in the minutes of your meetings. This documentation can help tremendously in the event of a lawsuit.
Boards hold you accountable.
Running your own property management business involves holding yourself accountable. It’s very self-driven. When you share your goals with your board of advisors or directors, on the other hand, they become much more real. A board will challenge you to set more specific objectives and will hold you to those timelines and targets. Having someone else to answer to can provide extra motivation and drive you toward greater success.
Do you have a board of directors or advisors for property management company? Any tips or advice for others thinking of doing the same? Please share your thoughts in the comments section below.