Facing severe challenges when establishing your startup could be an inevitable route. You won’t have any way to go past the challenge without going through it. And new entrepreneurs could rack their brains thinking of the best solution but will end up futile. This is why every venture would need a startup advisory board to help fill the gaps in knowledge and experience.
Here’s why a startup advisory board is vital and how to choose the right people.
What is an advisory board?
In a nutshell, an advisory board acts as your business mentor. These people are highly experienced and knowledgeable in business, which will immensely enhance how you operate the business.
By giving you business advice, you will have guidance in the following aspects:
- Inviting more investors
- Creating a compelling company culture
- Establishing growth techniques
- Attracting the right talents
- Retaining the right employees
- Planning and executing your exit strategy when all else fails
An entrepreneur’s relationship with the advisory board representatives is often informal and personal. This means communication is done via video chat, email, or text.
Why an advisory board is vital
Some entrepreneurs take an advisory board lightly due to the costs. But is it worth paying these individuals? Here are the benefits of having an advisory board:
- They can fill knowledge gaps that will enhance your performance as the CEO of your startup
- They will add credibility to your startup and boost trust among customers and investors
- They give you business advice that you might never think of due to a lack of experience
- You’ll become trustworthy in the eyes of external and internal stakeholders
How to choose the right members for your advisory board
Selecting the right members for your advisory board is crucial as you need people to add value to your business. Here’s how:
1. Assess your knowledge and neds
It’s crucial to determine why you’re choosing an advisory board in the first place. That said, look within yourself to find the right people. Assess your experience, knowledge, and needs. For instance, if you need someone knowledgeable about finding funding, choose someone with connections with investors.
2. Take advantage of personal relationships
The purpose of a business mentor is to have someone you can turn to when you need them the most. They act as your confidant and trusted ally. If you already have someone in your circle whom you think can add value to your business, see if you can leverage that relationship.
3. Do your due diligence
As responsible entrepreneurs, it’s your job to screen candidates thoroughly. Do your due diligence and perform background checks on each candidate. Do they have a proven track record? Have they garnered some positive testimonials from previous clients? What are their strengths and weaknesses? Do they have advocacies or different principles that might cloud their judgment? By aligning your values and beliefs, ensure that the candidate is the right fit.
4. Attend entrepreneurial events
Another way to find like-minded individuals is to attend business events and conferences. These are some occasions when business-minded people come together to share ideas and experiences. It’s also an excellent way to meet others who can potentially be your business mentor.
Conclusion
A startup advisory board is essential to your business, especially if you’re still learning the ropes. They add value to your company and improve the overall performance and operation, provided that you nurture these relationships.
