7 Ways To Make The Most Of Your Advisory Board

“What is the role of an advisor in a start-up? How do you choose the right advisors?

How do you measure if the advisors are contributing to the growth of the company?”

These are some of the most popular questions that entrepreneurs have asked me. An Advisory Board seems like a fancy, foreign term, especially for a first-time entrepreneur. Many times the founder doesn’t know how to build or nurture the Board for the start-up’s bright future.

So, I decided to dive into my personal experiences and reveal 7 tips which will aid you in making the most of your Advisory Board: 

#1 Select The Perfect Advisor

Most start-up entrepreneurs rely heavily on a great set of advisors who can help the start-up in growing holistically. Advisors contribute to building long-term strategies and act as a sounding board for the Founder’s ideas and plans.

My suggestion for entrepreneurs who are in the process of choosing advisors for their start-up is to look for advisors whose strengths will cover up your weaknesses. Look for competent individuals who complement your management style.

If you know that you have a blind spot, for instance, you are a techie and find it difficult to navigate through financial matters. Then look for someone whose financial acumen can guide you through.

Look for advisors who have the right mix of expertise and experience. Before you choose your advisors, ensure that you:

● Have multiple in-depth interactions with them,

● Walkthrough real-life scenarios from your business,

● Learn about their previous experience as advisors

● Check whether their thinking is aligned with your company’s vision and mission. 

#2 Ask For More

Advisors should be experts from different spheres whose extensive grasp over their field lets them think big.

Unfortunately, I have observed that many start-ups underutilize their Advisory Board. Of course, the advisors are not a part of the day-to-day activities in your stat-up. Hence, they will not directly or openly interfere in the running of the business unless you ask them to. As an entrepreneur, it is your job to ask your advisors to help you with their active participation.

● Ask them if they are willing to shoulder a little more responsibility.

● Ask their honest feedback about the way you manage operations [even day-to-day operations] and your strategy to scale.

You’ll be surprised to learn that most of your advisors are actually excited to be doing more! 

#3 Harness Their Prowess

You handpicked your advisory board to be full of intelligent, competent, and exceptional individuals from different fields. Now, it is time to harness the prowess of your advisors to help you in leveling-up.

● Constantly ask yourself: ‘What more can I do to get more from them?’

● Get their advice to areas not only related to their expertise but also adjoining domains.

● Don’t let the advisors work in silos. Connect the dots between them.

● Evaluate, at time intervals, how much really your advisors are contributing. 

#4 Where Do You Need Them Exactly?

Every entrepreneur, however smart she is, always has certain areas where she likes to work on full-throttle mode and has some areas where she is somewhat hesitant to make decisions or take actions. 

Identify the areas where you seem to be dragging your feet unconsciously. These are the areas where you need the most advice. Let them be your pit-stop team which fuels your confidence with knowledge and cheers you on as you continue to race faster. 

#5 Your 80:20 Rule Is Useless… Reverse That

Generally, start-up founders ask advisors to spend 80% of their time in transforming the start-up into a well-oiled machine. Advisors are expected to work on building new professional connections for the start-up, introducing new talent into the pool, and assist in financial decisions.

This leaves just 20% of advisors’ time to do the one thing they should be doing… ‘THINKING’! 

This 80:20 Rule must be reversed. Ensure that your advisors spend 80% time on thinking, on building strategies to achieve the milestones. This still leaves 20% of their time to help you with the logistics of your company – which is enough. 

#6 It’s All About Personal Relationship

Most start-up founders have Advisory Board once a week or once a month. This rigid corporate governance doesn’t always work for a start-up. Just board meetings are never enough. You need to strengthen your personal relationship with the advisors.

● Set up regular one-to-one calls with each of them

● Remember the best piece of advice given to you by that specific advisor so you can turn to them for more in the same domain

● Dive deeper on specific topics to extract from their crucial experience

● Analyze and debate if you don’t agree with something. Don’t hesitate to deliberate until you agree on the advisor’s suggestion

Nurture your relationship with each of the advisors to an extent where both of you can speak about negative feedback openly. Your professional bonding must allow you to take harsh feedback with aplomb and without disturbing your relationship with each other. 

#7 End Once Done

It is quite possible that you may no longer need a particular advisor or your engagements are no longer fruitful enough for either party. In such a scenario, it is vital that you as an entrepreneur identify the end of the advising relationship early on. 

● Communicate clearly as to why this relationship cannot move forward.

● Brainstorm if there is a possibility of switching the role into something more apt for the company.

● End the relationship on a positive note, with clear takeaways for both parties.

Advisor’s job is to coach you for the next level of the game.

Your job is to always remain hungry and keep pushing for more - more information, more debates, and more analysis.