Judy Brooks: Entrepreneur, co-founder of Blo Blow Dry Bar Inc.
I have had business advisory boards (BAB) in all three of my businesses and am a firm believer in the value they add to a business.
Adding a governance framework that ensures accountability and helps you perform better as an organization is a smart move.
But when is the right time to start one?
A scalable business model has proven its viability. So, if we assume startup means that you haven't proven that, it's probably not the time to start a BAB.
Exceptions might be if you have big financing in place – along with a big vision, and/or have built successful businesses before, so there is confidence in your go-big-or-go-home attitude and your proven leadership.
You're asking people for their time, and they have to feel they can add value, so making sure you are prepared to be accountable and transparency is key.
The relationship with your business advisory board is about challenging your thinking and moving you beyond where you are with frank dialogue.
Given all of that, what might be more important than the “should” is the “how.”
1. Define the purpose.
2. Choose your BAB wisely based on your purpose (friends, mentors and service providers are not the best choices).
3. Be clear on your expectations.
4. Be clear on what your BAB can expect from you.
5. Establish formal meeting procedures.
6. Evaluate and re-evaluate your BAB performance.
7. Reimburse your BAB (it does not have to be big or even money; get creative).
Shachi Kurl: Director, provincial affairs, Canadian Federation of Independent Business
Yes, you absolutely should create an advisory board for your startup business. By their nature, entrepreneurs are hands-on folks; they're prone to want to do everything themselves. But they also inevitably learn that no one can know everything about everything. Starting a business is daunting. A business owner is likely to become focused on the “trees” – an advisory board can help you see the forest, providing the benefit of different experiences and expertise.
Unlike other facets of running your own business, establishing a good advisory board usually means not trying too hard. The most helpful boards will also be the easiest ones to make and keep, as long as you remember a few key principles.
1. Find a mix of aptitude and experience, including people who have been where you are already.
2. Diversity is also important, because sometimes you need someone to think outside the box.
3. Keep things manageable. You have a business to run and build (and your board members also have lives). Don't let this swallow up too much time. Be flexible in your communications, ensure plenty of lead time for decisions, and keep your group small, no more than five or six people. When you do meet, have a clear agenda and communicate your expectations.
4. Provide appreciation and recognition – your board members are helping you for free because they like you, they believe in you and they genuinely want to help you succeed. Give them the mandate to help you, and thank them when they do.
A good advisory board can be a crucial asset and a humbling experience. Sometimes, even in business, you can get more than you pay for.
Ryan Holmes: CEO and founder, HootSuite Media Inc.
HootSuite has an advisory board, and it has been a big part of our company's success. My focus on building our advisers has been in finding people with specific expertise from diverse backgrounds – that is, they've been through their own set of respective successes and failures – so I constantly turn to them for their expertise and insight. In turn, the advice they share provides strategic input that has helped fuel our growth.
It's important that entrepreneurs align with people who can offer support and networking opportunities, both of which have been critical factors in HootSuite's rapid success. My advisory board and peers consist of CEOs, startup founders and industry professionals who are masters in their own industries. I am a big believer in openly sharing ideas and experiences; however, sometimes you need a trusted advisory board that can relate to the unique challenges of building a business and respect the “CEO vault.” Many of these conversations have been advantageous in positioning HootSuite to one day grow into a billion-dollar company.
As I can only personally leverage so much of the advisory board expertise, I also network my advisers with my own executive team to maximize the benefit of our advisory board. As some of the most talented individuals I've ever worked with, I encourage these leaders to build upon their success with the help of our advisory board. As HootSuite grows, it is critical that we keep its competitive advantage by attracting, developing and retaining talent driven toward a common goal.
To answer the question: Yes, your startup should have an advisory board. In retrospect, I wish I had set one up earlier!
