How to land a lion

Think you are too small to attract a dream non-exec? Think again, says Jonathan Hick  
   
Who is your dream non-executive? Charles Dunstone? Alan Sugar? Richard Branson? Whoever it is, you need to stop fantasising and get moving, because you might be surprised at just how keen your idol will be to join your growing enterprise. There are lots of examples of small firms landing weighty non-excecutives: Colin Smith, former CEO of Safeway, chairs Supaplants – a spin-out from Sheffield University Plant Science Department. Neville Bain, former CEO of Coats Viyella, deputy CEO of Cadbury Schweppes and chair of Royal Mail, was enticed to join Nutrinnovator – a one-year-old business that has developed a range of healthy cereal bars.   
   
There are several reasons for those guys joining such tiny firms. It’s rarely to do with money (although they won’t come free). It’s all to do with fun, challenge and a strong sense of wanting to put something back into the world of business. And with success being achieved at a much younger age these days, big hitters have more time and motivation to look for interesting opportunities.   
   
So how you attract a guru?   
   
The first step is to be clear about why you want a non-executive and what you want them to do. Look at the strengths of your board and identify gaps in skills or experience. Then look at your plans for growth and where this growth will come from. Are you planning to expand through new markets or through mergers and acquisitions? You could go for a non-exec experienced in raising finance, or in new routes to market such as franchising or the internet. Or you could target someone with experience in M&As, sidestepping the need to pay for an expensive corporate financier. If you are going international, find someone with experience in a particular geographical area.  
   
Once you are clear about the role for your non-executive, and what you’re offering, there are several ways to find and approach this person.  
   
Research
Who would be your dream recruit? Search for a name in the trade press, talk to people in your industry and see who has done recent deals in the area of expertise you need. Ask suppliers, customers, advisers and friends whether they have an entrée to this person. Then write to your recruit at work, or ideally at home, outlining your business, your plans and your reasons for contacting them.
  
   
Cheek
Find out when they might be “appearing live” at an event and get yourself there – select an appropriate moment. But if you don’t have a clue who you should be talking to, you could enlist the help of a ...
  
   
... Headhunter
Hire an executive search firm to identify a shortlist of candidates and approach them on your behalf. This can be costly and will require money upfront. It is also difficult for headhunters to identify and source the ideal non-executive for each case, because, unlike executive directors, candidates may come from a wide range of sectors.
  
   
Websites
A number of web-based services offer non-executive directors. Try Google or other search engines to find the sites – unfortunately there is no guarantee of quality.
  
   
Non-exec specialists
There are a small number of specialist search firms, like Directorbank, that handle a significant volume of non-executive appointments. These firms have access to large pools of talent in various sectors, and can persuade “big hitters” to look at smaller businesses. The specialiss’ services cost money, but this should end up being only a small percentage of the value the right recruit will add to your company.   
   
As for salary, the minimum rate is typically £10,000 a year, with big firms paying £20,000 to £25,000. If you’d struggle to compete, don’tfret: increasingly non-executives are taking stakes in businesses instead of fees. And even if you have to pay cash, it may well be worth it. Many smaller businesses say that investing in a non-exec was the best money they have ever spent.