Advisory Board for a startup- useful or not?

For us a board isan equity based group that helps with corporate governance, some idea resource sharing, and general oversite. We will have advisory boards for different iniatives and base any compensation on there importance to the success of the company. It is my firm belief that any form of a "Board", from start-up to exit, is important to ones success.

I highly recommend pulling in an advisory board. They bring a lot of ideas and they can be supremely helpful connecting you with everyone from investors to trusted service providers to customers. And they will work for stock (or at least they should).

Advisors can be hit-or-miss, and it is your responsibility to stay connected with them and get the most out of them. My greatest challenge is actually following up with our advisors regularly and leveraging what they have to offer.

And, unlike your actual board of directors, you don't have to follow every crazy idea they bring to the table (okay, you don't have to do that regardless, but with your regular board you frequently have to acknowledge and walk a few steps down the path before rejecting something).

I agree it is in incredibly important to have advisors, those that can provide you with ideas, resources and connections you may not have had. The biggest complaint I hear is that these advisors are courted, engaged, and excited about the roles and then never used or used in a limited way that doesn't keep them in the loop or relevant to you and is a disappointment to the advisor. Absolutely, find great advisors, and then be sure to establish a process to communicate to them and keep them engaged in your business and your needs.

I absoultely believe in advisory boards for start-ups (and somewhat larger companies)with one caveat: chose members that truly bring somrething to the table, be it years of industry or management experience, connections to funding or customers, or in general just a respected sounding board for ideas in your industry or niche. If it's just for an ego trip or a nice gesture to some friends, skip it - they wil lbe there for you anyway.

I recently attended the Atlanta Urban Entrepreneurship Forum and the question of advisory boards came up. After listening to the discussion and getting information to ponder on, I believe it is worthwhile to utilize an advisory board. A board can help you see ideas from different perspectives, highlight important steps in the process and will also bring of knowledge experience to you from different fields.

I have found Advisory boards very helpful, especially in the early stages of development. Finding non executive Board members can by tricky with concerns for liability issues, especially with funding and shareholder matters in the early days. The advisor can be just as valuable, without any of the liability issues. Advisors with specific experience and qualifications can be valuable at different stages of the corporate life cycle, for example having advisors connected to investors can bring credibility and introductions, having ones with industry experience can broaden the business's depth of technical knowledge, and pad out a management team. I have seen anywhere from a couple to ten advisors but dont believe that it is prectical for executive mangement to handle more then three or four . Brenda's point about communication and engagement is critical. Generally advisors are paid in stock options that vest over a service period, and they vest whether they contribute or note. Since advisors are necessarily part time and occasional performers in the team, they have other full time jobs and responsinbilities which can keep them busy. I recommend that you hold regular advisor meetings and assign written objectives that exploit the values you saw in them when you engaged.