This document provides guidance on establishing and utilizing an effective advisory board. It outlines the key objectives of an advisory board, which include leveraging outside expertise, gaining strategic advice and accountability. An advisory board is not a governing board and has no legal obligations. The document recommends advisory boards have at least 3 members with skills in areas like sales, finance, technology and strategy. It provides tips for finding and compensating members, as well as holding effective advisory board meetings. The overall goal is to create a high-functioning advisory board that helps achieve an organization's strategic goals.

2. Course Objective
To provide the framework and insights to
establish and utilize an Advisory Board.

3. Key Learning Outcomes
● Understand the importance of utilizing an
Advisory Board in a financial transaction
● Define the right Advisory Board members
● Delegating tasks to Advisory Board
members
● How to incorporate accountability with the
Advisory Board
● Quantify support mechanisms of the
Advisory Board

4. What is an Advisory Board
An Advisory Board serves an entity much like a
board of directors, with the important difference
being no legal obligation for governance and
the attendant legal liability in the event issues
arise.

5. Advisory Boards Enhance the Team
Skills and Accountability

6. Why Have an Advisory Board?
● Fill Strengths of the Team
● Leverage Core Competencies
● Broader Points of Connection
● Accountability Mechanism
● Sounding Board / Stop Gate
An advisory board is a cost-effective source of industry
skills, business contacts, access to capital, strategic advice,
accountability, and technical help.

7. Advisory Board Team
● At least 3 Members
● Key Strengths:
○ Sales and Marketing
○ Finance
○ Technical
○ Strategy
○ Operations
○ Legal and Human Resources
● Passionate about the Purpose and Vision
● Is an Advocate for the Company

8. Who Needs an Advisory Board?
Every entity should have an advisory board.
If a company has a formal board of directors,
then an advisory board can play a specialty
role. For example, many medical device
companies have Scientific Advisory Boards.

9. How to Find Members
1. Identify Key Skills the Team requires
2. Draft "Job Descriptions" for Skills
3. Incorporate those Skills into a Advisory
Board Job Description
4. Distribute the Job Description
5. Create a list of Candidates
6. Meet with Candidates. Passion? Admiration?

10. Compensating Members
● First Four Meetings: Cash Compensation
that is within your budget
● Get to know each other during these
meetings and make sure it is the right fit
● Equity participation (if available) is the most
logical for all parties long-term.
Note: DO NOT give rewards-based compensation for
introducing investors. This is a commission and can cause
securities regulation issues.

11. An Advisory Board
● Meets every 1 to 3 Months
● Meeting are 2 to 5 Hours
● Maintains Communication Between
Meetings
● Is a Highly Functioning Working Group
○ Superior Communications
○ Transparent with everything
○ Respects viewpoints
○ Makes decisions quickly

12. Expectations of an Advisory Board
● Learn the Vision and Mission of the Entity
● Actively Assist the Entity to Achieve its
Goals
● Speak Positively about the Entity and its
Founders / Executives in Public
● Constructive Criticism
Advisory Boards will provide the most value in
very specific roles such as:
Technical
Finance (fundraising)
Sales and Marketing

13. Life of an Advisory Board
Growth Companies always have a highly
functional Advisory Board.
The composition of the Board should change
over time so new skills are brought on board to
meet current needs and provide fresh
perspectives.

14. What Strengths / Skills Do You Want
List:

15. Member Disqualifiers
List:

16. Build your List, Recruit, Complete
● Create a list of 10+ Candidates
● Provide them with the Job Description
● Have 1:1 Meetings
● Write 2-3 things next to each Person of what
they would do to fulfill this role
● Select 5. Contact Candidates / Extend Offer
● Goal is to get at least 3 to commit

17. Sample First Meeting Agenda
Introductions: (icebreakers)
○ Top business and personal passions
○ What you hope to gain from this advisory board
Advisory Board - Best Practices and Goals
○ Share board experiences and best practices
○ Goals and expectations for this board
Company Presentation
Company Goals / Plans
What was your biggest takeaway from today?
Future Meetings / Communication Plan

18. Action Plan
● Inventory of Capabilities of Current Team
● Identify Gaps
● Establish Compensation
● Document Job Description and Define Roles
● Recruit. Have Candidates Commit by
Signing the Advisory Board Job Description.
● Schedule the First Meeting
● Assemble and Distribute Agenda
● First Meeting - Establish Team Rapport
● Schedule Future Meetings