Fortune 500 companies have something called a Board of Directors. These are experienced business people, often presidents or CEOs of other companies, who offer advice and guidance to help leadership make smart decisions and avoid expensive mistakes.

Now, your business may not have a boardroom or a corner office, but you can still use a group like that. Even if you’re the only one on the payroll, you can build an advisory board. It doesn’t have to be formal. You don’t need a lawyer, a five-page agreement, or matching jackets. You just need smart people who can help you see things clearly when you’re too deep in the day-to-day.

What does an advisory board actually do?

In a small business, the board won’t run your books or tell you what to do. That’s still your job. But they can offer perspective, hold you accountable, and fill in the gaps in your skill set. Let’s be honest. You probably started your business because you were good at something. Maybe you’re the best in town at what you do. But that doesn’t mean you know everything about running a business. That’s where the board comes in.

Who belongs on your board?

There’s no one-size-fits-all answer. It depends on what you need, what stage your business is in, and where you’re heading. If you’re just getting started, you might want people with deep connections or industry knowledge. If you’re growing fast, you’ll need folks who’ve been there and can steer you around the potholes.

Take a good look at your weak spots. If you know sales but hate spreadsheets, find someone who can help you think financially. Just be careful about adding people who already make money from your business. Asking your bookkeeper or your marketing agency to join your board might sound convenient, but they’re not likely to tell you if it’s time to cut ties or change direction.

Also, don’t stack the board with your spouse, kids, or best friend. They mean well, but they probably won’t call you out when it counts. You need people who’ll be honest with you, even when it’s uncomfortable.

Set expectations from the start

Before you invite anyone to your board, figure out what you want them to do. Write a basic job description. It doesn’t have to be fancy. Just be clear about whether you want help with strategy, hiring, financial planning, or something else.

And no, they don’t get to make the final call. This is your business. You’re in charge. But if you’re asking for their time and input, make sure they know what’s expected.

Be clear about the time commitment

Most advisory boards meet four times a year. It could be a lunch meeting, a half-day session, or something longer. It can happen at your shop, a local restaurant, or somewhere neutral. If you’re dreaming of a meeting in Maui, make sure you’ve had a really good year and plan to cover the travel costs.

Do you have to pay them?

Not necessarily. Small business boards are often unpaid. Many successful entrepreneurs are happy to mentor others. Still, it’s good to show some appreciation. Maybe make a donation to their favorite charity. Send a restaurant gift card. Or offer to sit on their board in return. The point is to say thanks in a meaningful way.

What if you’re not ready for a board?

If a formal board feels like too much right now, look for a peer group. These are groups of business owners who meet regularly to talk shop. You won’t get the same level of focus on your company, but you will have a chance to talk through common problems and share ideas with people who get it.

Bottom line, you may own your business, but that doesn’t mean you have to figure everything out by yourself. A solid advisory board gives you access to people who’ve already solved the problems you’re wrestling with. And that might just be the smartest decision you make this year.