Have you ever considered an advisory board for your business?

What is an Advisory Board?

An Advisory Board is formed by a business owner to provide advice, guidance, support and advocacy. It is not the same as a Board of Directors as it has no legal or formal responsibilities. It has no power of decision making and cannot instruct as to how the business can act.

Why have an Advisory Board?

1. Advisory Board members can provide valuable business insight and oversight.

2. Advisory Board members may have a specific area of interest and/or expertise that your business lacks.

3. It is a very flexible arrangement that can be changed as your business grows.

4. It can aid in succession planning and/or to become investment ready.

Tips for approaching potential Advisory Board members

1. Don’t just tap your personal contacts; go beyond your circle to look for others with capability and reputation.

2. Don’t be disappointed if a prospect is not available, In fact, they’ve done you a favour by being clear that they could not give your business the time it deserves.

3. Both parties need to undertake due diligence on each other. Any prospective Advisory Board member will want to know what they are getting into and also what is expected of them.

4. Compatibility is key. You want to ensure that the Advisory Board members can work effectively together and also with you.

5. Your first approach should be to the potential chair of the Advisory Board. You are looking for someone with a solid track record who can also get the maximum contribution from the other members.