“The way of success is the way of continuous pursuit of knowledge,” wrote Napoleon Hill, a pioneer in personal-development writing, in his book, Think and Grow Rich.

In that book, published in 1937, Hill introduced the “mastermind group” concept, which involves a collective of individuals who share ideas and provide constructive feedback on a mutual area of interest. Mastermind groups are popular today as an effective way for professionals to share ideas to improve their businesses.

Organizing and participating in a mastermind group can offer a chance to discuss obstacles, brainstorm ideas and find solutions, says Deborah Richardson, an executive business coach and founder of ThinkPartner Coaching Ltd. in Vancouver. Richardson herself is a member of a mastermind group.

In order to be effective, a mastermind group must be organized and run in a way that follows three principles:

1. Members must have similar business practices
Everyone involved in a mastermind group should grasp the problems that other members face in their businesses. Participants should either be from the same industry or have a good understanding of each member’s professional background.

You can meet with fellow financial advisors. If you are concerned about sharing information with competitors, you can choose to work with advisors who do not share your target market. You can also incorporate centres of influence who understand your business, such as real estate agents, mortgage brokers and accountants.

“You may share clients [with other group members], but you’re not in competition for the same dollar,” Richardson says.

Another way to avoid working too closely with competitors is to organize a group of advisors from various regions. Use online chat programs such as Skype to connect.

Also, consider whether members are in the same stage of their careers. A mastermind group would not function properly if senior advisors were meeting with rookies, says Richardson. Such a gathering would become a mentoring session rather than a meeting of equals.

2. The group must have an effective moderator
Your mastermind group’s moderator is the person who will lead the meetings. He or she must be committed to the group’s purpose and will be responsible for keeping the conversation on track and ensuring all members contribute.

Depending on your goals, you might have one of the group members take on this role, or you can hire someone to fulfill this duty. Engaging a business coach or a professional mediator who is skilled in leading these types of meetings can result in more focused brainstorming solutions. Your group members must decide if you want to take on that expense.

3. The group must have a documented set of rules
The first meeting should consist of all members agreeing to a set of guidelines.

Some basic details to consider: all members should arrive on time for meetings; members must be willing to share ideas and suggestions that could help other members; and participants must talk honestly about their own professional obstacles.

This initial meeting should also include the signing of a confidentiality agreement, something Richardson has incorporated into her own mastermind group. Confidentiality is important because you and your fellow group members will be sharing intellectual property and information about your business practices, Richardson says.

All members must be assured that their business intelligence will be protected.

This is the first part in a two-part series on setting up a mastermind group.

Next: How to plan effective meetings.