How to start your own Board of Advisors

Define board roles and responsibilities to provide expert strategic advice, require attendance, involve senior management, and hold the CEO accountable through progress reviews, planning, and financials.

Define diverse, skill-specific board candidate profiles, avoid conflicts with lawyers or bankers, and recruit one member at a time through LinkedIn and professional groups aligned to your growth goals.

Explore compensation strategies for boards, linking pay to performance through profit sharing, stock options, or adviser pools, and compare per-meeting fees, annual retainers, travel reimbursements, and contractor arrangements.

Address insurance and liability concerns for advisory boards by establishing a letter of indemnification and hold harmless drafted by your corporate attorney, using appendix templates as a guide.

Set up confidential, agenda-driven boardroom meetings with clear deliverables, schedule regular sessions, limit time for each item, distribute materials two weeks ahead, and involve senior management.

Build board committees for complex issues, forming two to three members (standing or ad hoc) to study compensation, audit, or finance and report findings to the full board.

Identify common reasons boards fail, such as poor chemistry, misfit members, and weak communication, and learn fixes like optimal size, appointment terms, compensation, and listening to advice.

Map your strengths and weaknesses on paper, draft targeted board questions, then create diverse candidate profiles and start small with scheduled meetings that stick to the agenda.

Start your advisory board now, viewing costs as an investment in your business. Be picky, interview candidates, set clear expectations, ensure attendance, and keep a year-long agenda with paid recognition.

Explore a templates appendix for starting a board of advisors, including a board search document, a commitment letter, and a board member engagement letter to customize for your business.