Some entrepreneurs fail to leverage the knowledge and experiences of others by failing to create advisory boards to support their companies. Such boards are among the critical components required to scale strong entrepreneurial opportunities.
Many times these failures begin with a simple lack of the understanding of the need or how to address it:
- A lack of understanding of the purpose and role of Advisory Boards
- A lack of understanding the value an Advisory Board brings to the start-up and entrepreneur
- Issues extending from previous, negative experiences with Advisory Boards
- A lack of the knowledge required for establishment of an Advisory Board
- A lack of the understanding of the attributes of Advisors to be engaged
- The entrepreneurs don’t know what they don’t know
Some of the failures to engage advisory boards stem from the belief by the entrepreneurs that she/he can accomplish the objectives themselves without the support of unrelated third parties or that in an effort to “boot-strap” they don’t want to expend the resources:
- The entrepreneur feels she/he can do it themselves
- The entrepreneur is busy and feels she/he does not have time to waste debating with outsiders
- The entrepreneurs do not want to expend scarce resources for advice
Finally, some failures to create advisory boards are a result of the fear and the unknown:
- Some entrepreneurs believe they must follow all advice from Advisory Board members
- Some entrepreneurs are afraid of how the Advisory Board will impact their roles/careers
- Some entrepreneurs recognize they don’t understand the operations of Advisory Boards and fear the impact on their companies will be negative
Seasoned entrepreneurs recognize from their experience the value of advisory boards. Taking the time to gain a comprehensive understanding of advisory boards can result in significant benefits to the scalable start-up.
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