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Board of Advisors Contributors
In the TV game show, "Who Wants to be a Millionaire", each contestant receives three lifelines. In many cases, these lifelines provide the contestant with the guidance to choose the correct answer, or at least help eliminate the wrong choices. Rarely does anyone know all of the answers, and without the help of the lifelines, the probability that the contestant wins is slim.
The business world is the same. How many times would you have liked to have a lifeline, or an advisory board, to help you think through your most critical decisions? Imagine having an industry insider, a proven business leader, and respected subject matter experts around a table providing you feedback on issues most crucial to your firm's long-term success.
An advisory board is an outside group that is informally organized to provide business owners and corporate leaders with support, advice and assistance. While formal boards of directors have legally defined responsibilities and fiduciary duties, advisory boards have no formal power or binding legal authority. They serve at the pleasure of the business owner or CEO.
By formalizing your "lifelines" into an advisory board, you add continuity, depth of perspective, and clear definition to these relationships and respective expectations.
Benefits of an Advisory Board
There are several advantages that companies with advisory boards have over their competition. A board offers your business:
- An unbiased outside perspective.
- Increased corporate accountability and discipline.
- Enhanced CEO and management effectiveness.
- Greater credibility with investors, vendors and customers.
- Help in avoiding costly mistakes.
- Rounding out skills and expertise lacking in current management team.
- A sounding board for evaluating new business ideas and opportunities.
- Enhanced community and public relations.
- Improved marketing results and effectiveness.
- Strategic planning assistance and input.
- Centers of influence for networking introductions.
- Crisis and transition leadership in the event of the death or resignation of the CEO.
- Help anticipating market changes and trends.
Steps to Creating an Effective Board of Advisors
Analyze the strength and weaknesses of your current management team. Look for critical areas of expertise and knowledge that your company could use help with such as marketing, legal, finance, eCommerce, and research and development or information technology. If your company is planning on going public within the next few years, seek out advisors who have successfully taken companies down that path.
Set clear, written goals and objectives for your board of advisors. Getting maximum value from a board of advisors begins with clear objectives and goals. Board members must know why they have been asked to serve and what is expected of them.
Determine the size and structure of your board. Advisory boards range in size from two members to over thirty. The right size depends on many factors, such as your company’s size, complexity, stage of development and individual skills needed. For most small to mid-sized, growing companies or start-ups, a 5 to 7 member advisory board is an ideal size. Smaller firms can start with just one or two members and add new members as they grow. Wasabi Ventures, with its unique approach of bringing a team to the advisory board, can act as a complete board for a small, growing company.
Wasabi Ventures becomes an important part of your extended management team and takes a vested interest in your success. Our professionals have a proven history of producing results in all of the business areas of a company:
Wasabi Ventures can help guide you to having a manageable and effective business plan to manage, grow, or fund your company in many different markets.
