3 Steps To Establish An Effective Advisory Board
When you’re deep in the heart of startup land, it can feel overwhelming — you have tons of variables to deal with, problems to address, and decisions to make.
So, how can you find a sense of support amidst the chaos? One effective solution is an advisory board.
In general, an advisory board is an external supporting body that provides non-binding strategic advice to the Founder(s) or CEO.
Unlike a Board of Directors, an advisory board is a relatively informal relationship and the advisors do not have a fiduciary responsibility to the startup nor do they have voting rights, which creates a space where advisors can provide unbiased feedback on many company matters. Typically the advisors role is to provide advice and share best practices on strategic direction, product, market, etc.
Sounds great, right?
But how do you actually set one of these up? We’ve got three tips for you.
The first three steps to setting up an effective advisory board
Define success:
Before assembling an advisory board, first think about your definition of success.
Take the time to think through why they are there. How can they help the company achieve your definition of success for the organization? What specific advice or help do you need to get to go from where you are now to where you want to go? What are your biggest problems that you could use help with?
Find the right people:
Once you’ve defined success and have a clear articulation of what you need out of your advisory board, it’s time to think through who should be on the board.
There are typically two categories:
people with connections who will help your company
people who have expertise in your industry.
There’s also a third category, which is people who have big brand name cache who might help your company grow on account of them being formally involved.
It’s up to you if you need this third category. Be very thoughtful though as you consider who would best serve on your advisory board, and do your best to get a diversity of opinions, which will only help to make your board more effective.
Actually use the advisory board:
One of the main problems we see with advisory boards is that leaders often don’t rely on them once they’ve been established.
Pro tip #1: you need to actually use the board.
Be clear with your advisory board:
why they are there,
what is expected of them,
and specify exactly how they can help.
Pro tip #2: Structure a cadence of getting them together on a quarterly basis and
Bring them big, meaty problems to help you think through.
Keep them in the loop between meetings, and even call them for advice during the interim.
Don't let the opportunity to work with really smart people who are willing to help you go to waste.
If they’ve agreed to be on your advisory board, this means they’re genuinely interested in what you’re up to and want to see you succeed. Remember, people like to feel useful. So, use them!
With these tips, you can get started on getting some support. Have questions? Let us know. We can help.