5 Steps to Getting Your Advisory Board Established in 2020
When it comes to starting and growing your business, there is no “one-size-fits-all” approach. However, one thing that separates the “average” business owners from those that are able to scale and to do so efficiently is the presence of an advisory board. Even the most successful CEO knows that having the right people around them can mean the difference between staying on top of emerging trends or squandering money away trying to see what will work. Having a team of knowledgeable business experts around you gives you not only the “sounding board” you may need for new ideas, but it also ensures that you are just a phone call or email away from having access to the top minds in their industry.
According to the talented and seasoned CEO peer development coaches, here are the top 5 steps you need to take to build a highly effective advisory board.
- Define your purpose. You want to take time to first determine what it is you want to get out of having an advisory board. Do you want additional support in marketing, sales, product development, etc.? It is important that you are intentional, upfront, with what you want to accomplish and how the advisory board will help you do that. When you have a clear purpose in mind, then it becomes easier to create a team of people around you to support that mission.
- Pick the right people. Keep in mind, the right people aren’t always those that share your same interests and ideas. You want to actively recruit people with differing backgrounds and perspectives to make sure that your advisory board won’t fall into the harmful “groupthink” mentality. I always recommend having at least one or two people who are known to be a bit rogue in their industry. In this way, you’re able to get a constant stream of new (and unconventional) ideas and perspectives.
- Carefully vet those you select. It is an intricate balance to find people who have an extensive background, but also are a good personality fit with your existing advisory team members. Going deeper than the cursory resume review is needed is always advised. Just like with a job interview, it is important to meet with each candidate in person as well as to ask for any character or professional references who can attest to why they would be a good addition to an advisory committee.
- Provide some form of compensation. Generally, advisory members are compensated one way or another. This could range from being paid for consultation services or by providing free perks such as gift cards, free meals, free products/services from your business, etc. The key is to think about how you will show them that you value their time and expertise. Be upfront about both the time commitment and the compensation involved as you meet with and select your advisory team.
- Stay in contact regularly. Advisory teams tend to meet infrequently and it is easy for them to feel out of touch with what is going on in your business. It is good practice to send out a monthly recap to your advisory team, updating them on what you accomplished that month, what you have coming up in the future as well as any challenges you are currently facing. The more you can keep them abreast of what’s going on in your business, the more they can provide strategic and valuable recommendations and insights.
These are just a few steps to make your advisory board experience as productive as possible.
Do you have an advisory board?
What steps did you use to assemble this team and/or what lessons have you learned? We welcome your feedback to keep this discussion going. Be sure to comment on our Facebook page here.
