GUIDE: GROW YOUR BUSINESS | STEP FIVE:

Form an Advisory Board

Do you want to save this information for later?
Send this guide to your e-mail for FREE!

Contrary to popular belief, having an Advisory Board for your startup is a perfectly normal thing. In fact, it’s a great strategy when you are lacking experience and want to grow quickly. High performing boards can help with ownership succession, leadership training, business performance, and business strategy.

When considering members for your board, consider the following criteria:

  • Independent of the business, family, and key employees
  • Critical thinkers
  • Experience on effective boards and with family businesses if possible
  • Companies that look like what you want yours to look like in 3 to 5 years
  • Faced issues you will face (growth, technology, distribution, etc.)
  • Not your attorney, CPA, wealth advisor, etc.
  • Open dissent is critical

When first starting your Advisory Board, it’s a pretty informal thing. Small get-togethers with a focus on how the owner(s) of the business can continue to learn and grow. An Advisory Board is typically non-binding, has no fiduciary responsibilities, no liability and is typically lower in cost to assemble/maintain.

As time moves forward, your Advisory Board may turn into a Legal Board. This essentially means your meetings become more formal, and the focus is more towards the longevity of the business, rather than just focusing on improving you as the owner. A legal board has a fiduciary obligation to their shareholders, has the ultimate legal authority for the company, and they have the ability to hire/fire the CEO.

Want to save this information for later?

Enter your name, email and ZIP Code below and we will send the Grow a Business Guide to your email inbox for FREE!

NOTICE: The information included on this website is to be used only as a guide. It is not intended to cover all provisions of the law or every taxpayer's specific circumstances.

GUIDE: GROW A BUSINESS

Connect with Us!

Get insights, inspiration and events to help you start, grow and accelerate businesses in Iowa.
Subscribe

How can we help you?

Our team helps grow entrepreneurship in Iowa every day.