Some entrepreneurs fail to leverage the knowledge and experiences of others by failing to create advisory boards. These boards are a critical component 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:
- Failure to understand 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.
- No knowledge of necessary steps in establishing 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 alone and 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.
- They are too busy and feel as though she/he does not have time to waste debating with outsiders.
- Hesitancy to expend scarce resources for advice.
Finally, some failures to create advisory boards are a result of the fear and the unknown:
- They believe they must follow all advice from Advisory Board members.
- Some entrepreneurs are afraid of how the Advisory Board will impact their roles/careers.
- Finally, 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.