Availability of a highly efficient board of advisors can propel the entrepreneurial start-up to new levels as they develop their product, define their business model, build their management team and obtain funding for growth.
However, such advisory boards are not accidental; they require planning. Twelve suggestions for creating highly efficient Advisory Boards are shared below.
Since the original publication of this article on April 21, 2015, several readers have provided feedback and suggestions that we elaborate further on some of the issues. Based on this feedback we have added links to articles providing a deeper discussion on some items and added suggestion number two.
How To Create An Efficient Board of Advisors:
- Define the Purpose/Objectives of Advisory Board.
- Establish Your Philosophies Related to Advisor Compensation.
- Recruit a Diverse Advisory Board.
Advisory Board Creation: What is the Single Most Important factor to be Considered?
- Pursue Independent, Unbiased Members; Doubters/Devils Advocates are Positive.
- Pursue Quality in the Advisors Engaged, Not Quantity in the Size of the Board.
Where Does the Entrepreneur and their Fledgling Startup Find Advisory Board candidates?
- Keep the Size of the Board Manageable.
- Establish Expectations for the Advisory Board and the Individual Members.
- Plan, Be Prepared and Expect Advisors to be Prepared for all Meetings.
- Leverage Member Networks.
- Provide Compensation for the Advisors, Based on Your Philosophies.
3 Considerations for Advisory Board Compensation
- Document the Advisor Relationship.
- Manage Ongoing Communications.