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July 1, 2021
If you are wondering what the difference is between a board of directors and an advisory board, you are not alone. This is a common question among business owners and entrepreneurs.
While a board of directors is elected to the role and governed by a particular set of legal responsibilities, an advisory board is an informal panel of experts who provide strategic advice to a company’s management executives or to its board of directors. However, they are not financially liable to that company or shareholders.
Who should be on an advisory board, and what will they do for me?
This will vary depending on your business, but an advisory board typically comprises several professionals with expertise in operations, technology, and sales and marketing. They provide objective feedback as well as support from the perspective of a fellow business owner.
At their best, the advisory board comprises subject matter experts who can fill knowledge gaps. As they do not serve in a governing capacity, their role is to provide guidance to the business owner to help them meet their goals. They can call on their own experiences to help you with issues such as long-term planning and brainstorming. This is usually accomplished through periodic meetings with the owner and business leaders.
The right members
The goal is to find members that will be objective and will push you out of your comfort zone with a fresh perspective, as well as members who will give you a diverse array of opinions. What you don’t want is a group who will go along with everything you say.
Advisors may be selected for their ability to expertly address concerns unique to your industry. The advisory board should be viewed as an independent, safe forum where strategy is discussed, and ideas are tested.
Ready to form an advisory board? Follow these 5 steps:
Recap:
Forming and sustaining an advisory board will entail an investment in terms of your time and energy. The payoff, however, may be more than worth your efforts. You stand to gain advice and insights from seasoned professionals who also offer the objectivity you need to help advance your business goals.
Our team is made up of seasoned professionals who bring years of industry experience to the table. You gain a trusted advisor who understands your business inside out.
Say goodbye to the hassles of hiring, training and managing in-house finance teams. You will never have to worry about unexpected leave of absence or retraining new employees.
Whether you’re a small business or a global powerhouse, our solutions scale with your needs. We eliminate inefficiencies, reduce costs and help you focus on growing your business.
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