How to build your Advisory Board

Stephanie Burns is the founder and co-owner of Chic CEO – a free resource for female entrepreneurs. As a contributor at Forbeswoman, she drew attention to how entrepreneur may build their Advisory Board, as almost every business has some areas where they could use some strategic guidance, and assembling an advisory board is a great way to fill in some of those holes.

Stephanie has listed five things to think about before assembling your advisory board.

1. Compensation.

A good advisor should get something in return for their time, connections, and expertise. The most common way to get an advisor on board is to offer a percentage of equity. That percentage can be anywhere from .5% – 2% typically, but it’s entirely up to you.

2. Credibility
Bringing on a well-respected advisor can establish credibility much faster and easier than you building it on your own.

3. Connection
Don’t be afraid to invite someone to your advisory board simply for his network. Obviously, you want them to be synergistic to your mission and purpose, but their sole role could be to introduce you to top investors, key clients, new markets, and customers.

4. Establish Your Needs
Get crystal clear on your short and long-term goals and then be honest with a potential advisor about what you need to get there.

5. Involvement
Before approaching an advisor, establish levels of involvement and assign an equity percentage. The more they want to be involved, the more equity you exchange. Some advisors are too busy to really dig in, but one connection can be worth thousands even millions to you.

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