{"id":532,"date":"2016-02-18T19:44:36","date_gmt":"2016-02-19T00:44:36","guid":{"rendered":"http:\/\/turinasbird.com\/?p=532"},"modified":"2016-02-22T15:41:28","modified_gmt":"2016-02-22T20:41:28","slug":"4-steps-to-creating-an-effective-advisory-board","status":"publish","type":"post","link":"https:\/\/turinasbird.com\/2016\/02\/18\/corporate-law\/4-steps-to-creating-an-effective-advisory-board","title":{"rendered":"4 Steps To Creating An Effective Advisory Board"},"content":{"rendered":"
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\"\"<\/a>An active and engaged advisory board made up of the right people can help propel a growth-stage company to the next level. However, missteps in the selection and management of an advisory board can cause a company to waste its most valuable assets: time and equity. With this in mind, before embarking on the development of an advisory board, it’s important to clarify the board’s role and develop strategies to ensure expectations are met.<\/p>\n

1) Understand the Role of Your Advisory Board.<\/b><\/p>\n

It’s important not to confuse an advisory board with a board of directors. While a board of directors has specific responsibilities (such as hiring and firing the CEO) and fiduciary obligations governed by law, there are no rules with regard to an advisory board. It is essentially an ad hoc group of individuals you turn to for guidance and wisdom. Your advisory board can be as big or as small as you like, and its members can have as specific or as general responsibilities as are agreed upon by the parties.<\/p>\n

2) Select True Advisors for Your Advisory Board.<\/b><\/p>\n

Companies generally choose advisory board members for two reasons: (1) the person has experience, knowledge, and connections which can help propel the company forward; and\/or (2) the person has name recognition and credibility which might “legitimize” the company.<\/p>\n

While there is nothing wrong with reason number 2, unless that person is truly planning on acting as an advisor or advocate for your company (as opposed to simply letting you drop their name into your website or at meetings), it is unlikely this type of advisor will add the value you envision. In contrast, the best type of advisor for your board will be an individual who:
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