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Why Have an Advisory Board?
Fast-growing private companies, particularly, benefit from the advice and counsel of a skilled Advisory Board, but the purpose of a company Advisory Board is consistent across all markets and company types. Namely, an advisory board increases its company's profitable growth by honing strategies and by providing experienced counsel and critical introductions. In addition, board members can provide useful contacts to potential customers, alliance partners, financing sources and other key contacts.
Why CEO's Have Advisory Boards
- Getting advice from experts who may have a perspective different than the CEO on specific issues
- Allowing a CEO to obtain an independent point of view in a "non-threatening" environment
- Attracting potential investors through advisor credentials
- Validating the strategy and business model - Advisory Boards add significant value to the company and the CEO, particularly to growing firms regarding their business models and business strategies
The Value of an Advisory Board
- Strategic Input - Advisory Boards bring years of experience to bear to help craft the best strategies for a company
- Sounding Board - Advisors provide excellent feedback on new ideas and can be a personal sounding board for the CEO
- Objective Perspective - Non-employee Advisory Boards have stronger neutrality than colleagues with work or social ties
- New Ideas - Diversity in backgrounds and perspectives among advisors helps spark creativity
- New Contacts – Advisory Board members can make introductions to potential new customers, alliance partners, sources of financing and other key contacts
- Management Mentoring - Advisory Boards can bring new insight and inspiration to a management team
- Industry Expertise - Advisory Board members' years of experience bring to light nuances of a company's industry that might otherwise be overlooked
- Cost Effective - Advisory Boards provide on demand access at a lower cost than than a full-time senior team with comparable expertise
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