September 9, 2015
9 Ways Small Business Owners Can Identify Advisory Board Members
5. Target Work Horses, Not Fancy Titles. The most common mistake I see new entrepreneurs make when putting together an advisory board is shooting for the moon. I’m all for being ambitious, but the reality is you’ll get much more help from people who’ll commit to meeting with you regularly, and will roll up their sleeves when necessary. Choose advisors who have a strong bias for action.
6. Determine Whether They’ve Been on an Advisory Board Before. You want someone who understands the role of an advisory board and who has been through it before. Often, a first-time advisor doesn’t understand the nature of how they can best help. As a result, they may end up being unhelpful or potentially give harmful advice. Talk to the founders of companies they have advised for in the past to get a good sense of how helpful they’ve actually been.
7. Identify Your Own Weaknesses. Figure out your business’ weaknesses and make sure that the advisors you select have both experience and can provide true value. Once you’ve identified these individuals, depending on the circumstances, you could consider providing equity, cash or benefits. We went the equity route and it’s worked out well for us. Each situation is different, so see what works best for your business.
— Hesam Meshkat, Guzu
8. Identify Based on Diversity of Skill Set. The key to forming an outstanding advisory board is to understand the value of the board is only as valuable as the diversity of skills of its board members. You should have an advisory board that can offer critical skills, such as finance and marketing. In addition, depending on your goals, you’ll want to have one or more members who have experience building (and selling) large businesses.
9. Recruit Proven Passion. You have a great idea and passion to pursue it. Now you need to find advisors. Start with people who have already “made it” in your vertical: those leaders possess the knowledge that you need, and experience that will add the most value to your company. Ask for help and you’ll find out quickly which people are worth a spot on the board.