Online Business Success: Advisory Board Primer (Part I)

One of the most powerful ways to experience outrageous success in your business and career is to surround yourself with positive, successful people who inspire and motivate you.  Establishing an advisory board is a powerful and highly effective way to build a supportive team that will propel your business to accelerated success.   Let's get started with the basics.

What is an Advisory Board?

An advisory board (a.k.a. Board of Advisors) is a group of seasoned professionals who possess a vested interested in your business and are willing to invest time in cultivating your success. 

Who should you invite to join your board?

• Experts in areas important for your success.  Seek out specialists who have expertise areas like intellectual property, accounting, insurance, marketing, sales, human resources and general corporate transactions.
• Experts in areas in which you are weak.   Find professionals who can provide insight into areas in which you need additional support such as negotiating deals, sales tactics and managing joint ventures.
• Mentors/ Role Models.  People who you like, respect and operate companies and model franchises can be fantastic advisory board members.

The most effective members are those from whom you can learn and grow.  It is useless to have an advisory board filled with people who will simply agree with your viewpoints and business strategy; therefore, do not waste time inviting people who are unlikely to be candid and objective with you.  

Key Traits of Ideal Members:

• Seasoned and Successful Professionals/Business Owners. People who have built successful businesses are often interested in contributing to the success of emerging businesses.
• Demonstrated Interest in Community/Industry.    People who are engaged in the community or industry groups often like to be actively engaged in supporting the success of others.
• Retirees.   People who are retired are often interested in supporting the growth and development of growing businesses.  Retired folks are also often looking for ways to stay active and relevant in the business community.

What is in it for them?

• Building Relationships.   Once you secure an influential member for your advisory board, you will find that other candidates will be attracted to your advisory board and the added benefit of working with their industry peers.  Successful people tend to gravitate to other successful people. 
• Giving Back.   Many successful people have a sincere interest contributing to the success of others.   Your job is to demonstrate that your business advisory board is the right opportunity for their investment of time and energy.  Developing a high-impact advisory board book is one way to showcase the promise of your company.  We will delve into the key components of an effective board book later in this article.
• Sense of Value and Pride.   One of the best forms of flattery is to ask for someone's advice and opinion.  Being a part of your advisory board offers your members an opportunity to feel really good about adding value to your business and being a central part of your success.   Do not underestimate the power of bragging rights.

What are your obligations to your members?

• Treat them well.   During meetings, sponsor non-alcoholic drinks and light hor d'oeuvres.
• Invest in a nice and quiet meeting space.   Show your professionalism and high regard for your advisory board members' by securing a private space for your meetings (e.g, private room in a restaurant or hotel meeting room).
• Be prepared.    Bring pens, notebooks and copies of your agenda to each meeting.  Distribute materials that are important to discuss at the meeting approximately one week prior to the meeting.   Be judicious when sending information to your advisory board members, remember these are busy people with limited time ... so only send pertinent information.
• Stick to the time schedule.   During the initial stages, consider limiting your advisory board meetings to one hour per quarter.  It is critically important that you stick to your time schedule, regardless of whether or not you address each topic on your agenda.   It is your job to develop an agenda that properly allocates time for each item and then manage the agenda.  When creating the agenda, be diligent about only including high priority items that are likely to have a significant impact on your business.   Advisory board meetings should not turn into open-ended brainstorming meetings - save this for your Mastermind groups.
• If you find that certain items take longer than anticipated, adjust your agenda, recognizing that you may not get through all items.   You must not exceed your time schedule, regardless of how interesting the conversation around a particular topic.  At the end of the meeting, let your members know that you value their time and will table all remaining items until your next meeting.   It is important that you adhere to your schedule (and all other things promised) as you build your reputation and creditability with your advisory board and in your community.

BONUS:  Although it is not necessary to pay board members a fee, it is a nice gesture to make a charitable contribution after each meeting in the name of your collective board.