Act Now! You Need an Advisory Board for Your Startup

Starting a business is a daunting task, but it can be even more difficult to do it alone. That's why many entrepreneurs choose to form an advisory board. An advisory board is a group of experienced professionals who can provide guidance and support to a startup.

In essence, an advisor's job is to act as a mentor for you and your business. Generally speaking, advisers provide advice or recommendations in the following areas: locating investors, assembling a team, creating a product roadmap, go to market strategy, scaleup and regulatory compliances.

Depending on your company's size and stage of development, your advisory board's composition may include a variety of experts. My recommendation is to have three to five advisors. The founder(s) and management team are to get advice and support from advisors in this capacity. They may support you with strategy planning, company growth, money raising, marketing, sales, and more.

You might start by locating suitable individuals that have experience in fields that are pertinent to your company before approaching an advisor. Then, you can get in touch with them by email or LinkedIn and give a quick overview of your business and the kind of advisor you're looking for. They'll respond and arrange a time to chat if they're curious to learn more about your business.

The advisor must be compensated. The following four are the most common ways to compensate advisory board members.

1. Per-meeting compensation: This is the most straightforward way to compensate advisory board members. You simply pay them a set fee for each meeting they attend.
2. Annual retainer: This is a more long-term arrangement. You pay the advisor a fixed fee each year, regardless of how many meetings they attend.
3. Equity: This is a way to compensate advisory board members with a stake in the company. This can be a good option if you're looking for advisors who are committed to the long-term success of your company.
4. Other forms of compensation: In some cases, you may also want to compensate advisory board members with other forms of compensation, such as travel expenses, meals, or gifts.

While engaging with the Advisor, apart from building a structured engagement,

1. Be clear about your expectations: Before you recruit any advisory board members, be clear about what you expect from them. This includes how often you expect them to meet, what kind of advice you're looking for, and how much you're willing to pay them.
2. Be flexible: If you're not sure how much you want to pay advisory board members, be flexible. You can always start with a per-meeting fee and then increase it if you're happy with their performance.
3. Be grateful: Remember to thank your advisory board members for their time and expertise. A simple thank-you note, or gift can go a long way.

It is essential to have an agreement with an advisor. I recommend the Founder Institute's FAST agreement for onboarding an Advisor. You can access it here and customize it to suit your purpose.

Let's connect & collaborate! I welcome your views and feedback...

#advisoryboard #advisory #mentoringmatters #gotomarketstrategy #scaleup #goingglobal #digitalacceleration