6 things to keep in mind when forming an advisory board

What are the primary goals of the advisory board?

An advisory board is a group of people who offer advice to a company's CEO. The goal is to make decisions as fast and accurately as possible. This is why entrepreneurs should think about the following:

• The advisory board helps you make the right decisions. It can make recommendations on how to grow your business and suggest ways to improve your products and services.
• The advisory board helps you grow your network. Having a strong network can help you find new suppliers and distributors, attract new employees, and gain access to new markets.
• The advisory board provides access to expertise. If you're not an expert in a particular field, it can be difficult to make decisions without the guidance of someone who is.
• The advisory board helps you gain perspective. Having a diverse group of people on your advisory board can provide you with new perspectives and insights.
• The advisory board acts as a buffer against bad decisions. Even experienced entrepreneurs can make poor choices if they're under too much pressure or are deeply immersed in a business venture. Having a group of people who can step in and stop you from making bad decisions can be invaluable.

The board is also responsible for removing the CEO, here are some questions board members considering replacing the CEO.

Who will be responsible for managing the board and facilitating communication between members?

Being a board member for a startup is a huge responsibility. It can also be a stepping-stone to greater opportunities. It's important to understand how a startup board works, the different roles and responsibilities, and the impact it can have on your career. It's also important to understand that the startup board is different than corporate board. Corporate board members are usually high-level executives and experienced directors. Startup board members are more likely to be investors and industry experts who sit on multiple boards.

How often will the board meet, and what is the expected time commitment of each member?

The frequency of board meetings should be dictated by the industry and the size of the company. For example, a biotech company will have much more critical decisions to make than a tech company. As for the time commitment, this is often negotiable, but expect to spend at least a few hours per meeting.

What is the process for onboarding new members and what criteria will be used to select them?

Approach the hiring process methodically. Be clear about your hiring requirements and expectations. Do your homework to ensure that you're not only bringing on the right talent, but also making the most of their time and resources.

"Make sure you have a list of the skills and experience that you need from the new hire. This will help you in your search for the right candidate and in making the decision about who to hire," says Jonathan Levine, CEO of Windfall.

What is the role of the advisory board in relation to the company's management and board of directors?

An advisory board can be a useful resource for a new business but it's important for the entrepreneur to understand what their role is. They are not there to replace the management team or board of directors. Instead, they are there to offer advice and guidance on a wide range of issues. Their role is important but it is also limited, which means that entrepreneurs shouldn't rely on them too much. Instead, they should use the advisory board as a way to get feedback and ideas and then take those ideas and implement them themselves.

What are the expectations for confidentiality and conflict of interest among board members?

Confidentiality and conflict of interest are intertwined, so the best way to answer this question is to explain what each term means and why both are essential to board members. Confidentiality refers to the private information that board members are privy to, and it's important to keep that information private and out of the hands of competitors. Conflict of interest refers to any situation that may bias a board member's judgment because of personal connections to something the company is involved in. By explaining these two terms and why they're so important, you'll give the impression that you know what you're talking about and that you're prepared for these questions.