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Member You - How to Develop a Successful Board of Advisors (...and Why You Should!)
How To Double Your Profits - Peter's Way
Peter worked hard. Damned hard. All day he toiled to sell blueberry muffins. And they were special muffins with forty blubberies each. But he only sold so many. Everyday, he'd fight a losing battle just to sell them all. At the end of the day, they weren't fresh anymore and people didn't want stale muffins. Then one day Peter doubled his profit. Yeah, just like that. He changed what he said and he sold twice as much."How much are those muffins, mate?" his customers would ask. "$3 for two," he'd say. And they'd buy two instead of one.Simple, huh?It's called bundling. We used to sell the Brain Audit for $xxx and PsychoBranding for $xxx. When someone bought the Brain Audit, we'd try to sell them PsychoBranding. Some customers bought and some didn't. Then one day we used Peter's combo technique. We sold both the products, the Brain Audit and PsychoBranding as PsychoCombo.Boom! Our sales went through the roof. We were taking home twice as much money, and at the same time giving the client more value -- more information. More ways to increase their profits.McDonald's does it all the time. We experience it all the time. Yet we never do it all the time.Why ever not?
ends, family members or professional advisors to sit on their board. This is usually a mistake. Unless your friend or family member is a recognized authority in an area of expertise lacking by your management team or a highly successful entrepreneur, they are probably not the wisest choice. Peter worked hard. Damned hard. All day he toiled to sell blueberry muffins. And they were special muffins with forty blubberies each. But he only sold so many. Everyday, he'd fight a losing battle just to sell them all. At the end of the day, they weren't fresh anymore and people didn't want stale muffins. Then one day Peter doubled his profit. Yeah, just like that. He changed what he said and he sold twice as much."How much are those muffins, mate?" his customers would ask. "$3 for two," he'd say. And they'd buy two instead of one.Simple, huh?It's called bundling. We used to sell the Brain Audit for $xxx and PsychoBranding for $xxx. When someone bought the Brain Audit, we'd try to sell them PsychoBranding. Some customers bought and some didn't. Then one day we used Peter's combo technique. We sold both the products, the Brain Audit and PsychoBranding as PsychoCombo.Boom! Our sales went through the roof. We were taking home twice as much money, and at the same time giving the client more value -- more information. More ways to increase their profits.McDonald's does it all the time. We experience it all the time. Yet we never do it all the time.Why ever not?
Another reason to avoid asking family or friends to join your board is lack of objectivity. Often advice from a friend, family member or management insider is sugar coated to protect relationships. An outside advisor can give you a much more objective and honest assessment of the situation.
Using professional advisors such as your lawyer, banker or accountant as board members has it’s own pitfalls. These advisors are already working for you and may not be as objective as you need, due to having an interest in generating future business from your company.
Some critical action steps for recruiting a dynamite board of advisors are:
- An unbiased outside perspective.
- Increased corporate accountability and discipline.
- Enhanced CEO and management effectiveness.
- Greater credibility with investors, vendors and customers.
- Help in avoiding costly mistakes.
- Rounding out skills and expertise lacking in current management team.
- A sounding board for evaluating new business ideas and opportunities.
- Enhanced community and public relations.
- Improved marketing results and effectiveness.
- Strategic planning assistance and input.
- Centers of influence for networking introductions.
- Crisis and transition leadership in the event of the death or resignation of the CEO.
- Help anticipating market changes and trends.
- An unbiased outside perspective.
- Increased corporate accountability and discipline.
- Enhanced CEO and management effectiveness.
- Greater credibility with investors, vendors and customers.
- Help in avoiding costly mistakes.
- Rounding out skills and expertise lacking in current management team.
- A sounding board for evaluating new business ideas and opportunities.
- Enhanced community and public relations.
- Improved marketing results and effectiveness.
- Strategic planning assistance and input.
- Centers of influence for networking introductions.
- Crisis and transition leadership in the event of the death or resignation of the CEO.
- Help anticipating market changes and trends.
- Develop a candidate profile. After you have determined the areas of expertise your company is in need of, create a profile of candidates that successfully fit these needs. Take care to address knowledge and skills that your company will need to meet projected growth and future challenges.
- Seek out experts. Search online and offline for experts and proven leaders that meet your candidate profiles. Contact them and begin discussions about possible board membership.
- Ask for recommendations. Solicit recommendations from the experts you speak with that cannot serve on your board, of collogues of theirs that they feel would be a good fit for your needs. Begin networking with your attorney, accountant and other professional advisors. Once you have successfully recruited an advisor, he or she can often lead you to another good candidate.
- Find your candidates motivation. Most of your candidates are not going to be motivated by money alone. In fact, if money is their primary reason for joining your board, they may not be what you are looking for. The most effective board members are motivated by the challenge and intellectual stimulation of building successful companies. They serve because they are already high achievers and enjoy the challenge.
- Have variety in your board. Try to include experts and successful entrepreneurs from several different disciplines. Often board members who are successful marketers, CEOs and business owners from different industries can bring a fresh perspective to your business. These individuals can often help you incorporate best practices from other industries, into your own industry, creating revolutionary changes and opportunities.
- Look for a proven track record. Find the leaders in their field. The best board candidates are successful CEOs, business owners, professionals, university professors and consultants who have achieved success in their own businesses and careers.
- Clearly communicate your goals and objectives. Invest time in talking to and meeting with potential members. Communicate to them what your goals and objectives are. Let them know that you are not looking for “yes men” and that you want advisors who will challenge you and hold you accountable for your businesses growth.
- Members missing meetings. Because board members are usually running successful businesses of their own, they may not always be available for every meeting. However, board members should be made aware that attendance of board meetings is important and expected. If a member is chronically absent, the value of their membership on the board should be reviewed.
- Insecurity of senior managers. Some company insiders may feel intimidated or threatened by the involvement of outsiders. The CEO or owner must make every effort to communicate to his staff the benefits and importance of having a board of advisors.
- In
Sun Zi Art of War - Five Stages of Evaluating Success of Strategies
Now in warfare, evaluations must be made as follows: First, estimating the degree of difficulty; second, assessing the scope of operation; third, calculation of own forces; fourth, comparison of forces; and fifth, establishing the chances of victory. Based on the characteristics of the terrain, the degree of difficulty is estimated. Based on the degree of difficulty, the scope of operation is assessed. Based on the scope of operation, the calculation of own forces is made. Based on the calculation of own forces, comparisons are evaluated against those of the enemy. Based on the evaluations, the chances of victory can then be established. - Chapter Four, Sun Zi Art of WarAccording to Sun Zi, there are five stages you need to look into to evaluate your chances of victory, and they are firstly estimating the degree of difficulty; secondly, assessing the scope of operation; thirdly, calculation of own forces; fourthly, comparison of forces; and fifth, establishing the chances of victory.BUSINESS APPLICATIONLet’s have a look at how to apply these five stages to business strategy evaluation. Degree of DifficultyThe first stage is degree of difficulty, as elaborated by Sun Zi, you have to look at the terrain to decide. Terrain in warfare would refer to the culture of targeted consumer market, political and economic forces, laws enacted for economy and industry. In summary, it means the characteristic of the targeted market. And from this you can move to the next stage of
In today’s rapidly changing and highly competitive markets, many privately held companies are creating outside advisory boards to give owners and CEOs fresh, knowledgeable advice. Now in warfare, evaluations must be made as follows: First, estimating the degree of difficulty; second, assessing the scope of operation; third, calculation of own forces; fourth, comparison of forces; and fifth, establishing the chances of victory. Based on the characteristics of the terrain, the degree of difficulty is estimated. Based on the degree of difficulty, the scope of operation is assessed. Based on the scope of operation, the calculation of own forces is made. Based on the calculation of own forces, comparisons are evaluated against those of the enemy. Based on the evaluations, the chances of victory can then be established. - Chapter Four, Sun Zi Art of WarAccording to Sun Zi, there are five stages you need to look into to evaluate your chances of victory, and they are firstly estimating the degree of difficulty; secondly, assessing the scope of operation; thirdly, calculation of own forces; fourthly, comparison of forces; and fifth, establishing the chances of victory.BUSINESS APPLICATIONLet’s have a look at how to apply these five stages to business strategy evaluation. Degree of DifficultyThe first stage is degree of difficulty, as elaborated by Sun Zi, you have to look at the terrain to decide. Terrain in warfare would refer to the culture of targeted consumer market, political and economic forces, laws enacted for economy and industry. In summary, it means the characteristic of the targeted market. And from this you can move to the next stage of
Even for small businesses, setting up an advisory board can give you a significant advantage over competitors that are relying solely on internal talent. An experienced and well-connected board of advisors can help your business grow and prosper in ways you’ve never imagined.
What is a Board of Advisors?
An advisory board is an outside group that is informally organized to provide business owners and corporate leaders with support, advice and assistance. While formal boards of directors have legally defined responsibilities and fiduciary duties, advisory boards have no formal power or binding legal authority. They serve at the pleasure of the business owner or CEO.
Benefits of an Advisory Board
There are several advantages that companies with advisory boards have over their competition. A board offers your business:
Analyze the strength and weaknesses of your current management team.
Look for critical areas of expertise and knowledge that your company could use help with such as marketing, legal, finance, eCommerce, and research and development or information technology. If your company is planning on going public within the next few years, seek out advisors who have successfully taken companies down that path.
Set clear, written goals and objectives for your board of advisors.
Getting maximum value from a board of advisors begins with clear objectives and goals. Board members must know why they have been asked to serve and what is expected of them.
Before establishing the board, the CEO and senior managers should sit down and ask some of the following questions:
1. What are the main areas we need advice and guidance in?
2. What specifically do we need the board members to do for us?
3. Who are a few potential candidates for board membership?
4. How do we avoid giving away too much control to outsiders?
5. What will be the powers and limitations of the board?
6. What will setting up the board cost initially? Annually? Will it be worth the cost?
Determine the size and structure of your board.
Advisory boards range in size from two members to over thirty. The right size depends on many factors, such as your company’s size, complexity, stage of development and individual skills needed. My experience and research has found that for most small to mid-sized, growing companies or start-ups, a 5 to 7 member advisory board is an ideal size. Smaller firms can start with just one or two members and add new members as they grow.
Recruiting Candidates
Determining whom you invite to join your board is one of the most critical decisions in setting up a board of advisors. Often a business owner’s first instinct is to ask friends, family members or professional advisors to sit on their board. This is usually a mistake. Unless your friend or family member is a recognized authority in an area of expertise lacking by your management team or a highly successful entrepreneur, they are probably not the wisest choice.
Another reason to avoid asking family or friends to join your board is lack of objectivity. Often advice from a friend, family member or management insider is sugar coated to protect relationships. An outside advisor can give you a much more objective and honest assessment of the situation.
Using professional advisors such as your lawyer, banker or accountant as board members has it’s own pitfalls. These advisors are already working for you and may not be as objective as you need, due to having an interest in generating future business from your company.
Some critical action steps for recruiting a dynamite board of advisors are:
How to Receive Good Customer Service
Customer Service-people chuckle, grimace and always have some opinion about whether or not it's available anymore. Some have even mentioned that they feel it's one of those oxymorons like "giant shrimp". I say you can get excellent help, if you know how.Yes, I'm a writer-but only part-time. A girl's gotta pay the bills and this freelance position isn't exactly up there in the pay scale, so I have to maintain a "day job" position and for the most part my job is customer service, so I know of whence I speak.To get someone to help you isn't really difficult or time-consuming, it's not even a secret-one must simply treat the person who is at the other end of the phone (or desk)as if they are not something less than dirt. Truly.An example: Your kitchen faucet is 2 years old, the pull out hose is losing it's finish and instead of "tuscan bronze", polished chrome is peeking out, every time you spray something. The part is under warranty. You would like a new hose. How do you get it?1. Look up your paperwork or at least know how it was purchased. Call the business you bought it from. With today's computers and the proper information can be obtained in a few minutes. However, after two years, don't expect them to remember that it was purchased under your designer's/contractor's name. If you can't remember, give several options! A computer is a helpful tool, not a mind reader.2. Don't use profanity. Think before you speak. The person who's asking questions is trying to help, if you ca
companies with advisory boards have over their competition. A board offers your business: Customer Service-people chuckle, grimace and always have some opinion about whether or not it's available anymore. Some have even mentioned that they feel it's one of those oxymorons like "giant shrimp". I say you can get excellent help, if you know how.Yes, I'm a writer-but only part-time. A girl's gotta pay the bills and this freelance position isn't exactly up there in the pay scale, so I have to maintain a "day job" position and for the most part my job is customer service, so I know of whence I speak.To get someone to help you isn't really difficult or time-consuming, it's not even a secret-one must simply treat the person who is at the other end of the phone (or desk)as if they are not something less than dirt. Truly.An example: Your kitchen faucet is 2 years old, the pull out hose is losing it's finish and instead of "tuscan bronze", polished chrome is peeking out, every time you spray something. The part is under warranty. You would like a new hose. How do you get it?1. Look up your paperwork or at least know how it was purchased. Call the business you bought it from. With today's computers and the proper information can be obtained in a few minutes. However, after two years, don't expect them to remember that it was purchased under your designer's/contractor's name. If you can't remember, give several options! A computer is a helpful tool, not a mind reader.2. Don't use profanity. Think before you speak. The person who's asking questions is trying to help, if you ca
Analyze the strength and weaknesses of your current management team.
Look for critical areas of expertise and knowledge that your company could use help with such as marketing, legal, finance, eCommerce, and research and development or information technology. If your company is planning on going public within the next few years, seek out advisors who have successfully taken companies down that path.
Set clear, written goals and objectives for your board of advisors.
Getting maximum value from a board of advisors begins with clear objectives and goals. Board members must know why they have been asked to serve and what is expected of them.
Before establishing the board, the CEO and senior managers should sit down and ask some of the following questions:
1. What are the main areas we need advice and guidance in?
2. What specifically do we need the board members to do for us?
3. Who are a few potential candidates for board membership?
4. How do we avoid giving away too much control to outsiders?
5. What will be the powers and limitations of the board?
6. What will setting up the board cost initially? Annually? Will it be worth the cost?
Determine the size and structure of your board.
Advisory boards range in size from two members to over thirty. The right size depends on many factors, such as your company’s size, complexity, stage of development and individual skills needed. My experience and research has found that for most small to mid-sized, growing companies or start-ups, a 5 to 7 member advisory board is an ideal size. Smaller firms can start with just one or two members and add new members as they grow.
Recruiting Candidates
Determining whom you invite to join your board is one of the most critical decisions in setting up a board of advisors. Often a business owner’s first instinct is to ask friends, family members or professional advisors to sit on their board. This is usually a mistake. Unless your friend or family member is a recognized authority in an area of expertise lacking by your management team or a highly successful entrepreneur, they are probably not the wisest choice.
Another reason to avoid asking family or friends to join your board is lack of objectivity. Often advice from a friend, family member or management insider is sugar coated to protect relationships. An outside advisor can give you a much more objective and honest assessment of the situation.
Using professional advisors such as your lawyer, banker or accountant as board members has it’s own pitfalls. These advisors are already working for you and may not be as objective as you need, due to having an interest in generating future business from your company.
Some critical action steps for recruiting a dynamite board of advisors are:
Firing Employees Isn't for Sissies
"If we lived in a perfect world, there wouldn't be a need for managers." - Bryce's LawINTRODUCTIONI recently had a good friend experience a troubling termination of an employee. This was for a national retail distribution company where my friend serves as Sales Manager for one of the company's regional outlets. The problem centered on a young (thirty-ish) salesman who was well trained but acted like a loose cannon, e.g., policies and procedures weren't always followed, and he was caustic and abrasive with customers and suppliers alike. This inevitably resulted in some serious customer relations problems for the company. On more than one occasion, my friend was called in to bail out the salesman. His conduct and attitudes were well documented in his performance reviews and my friend went beyond the call of duty to counsel the salesman. Regardless, the salesman recently insulted a young female supplier by using the legendary "f***" word on the telephone (along with several other choice expletives). Not surprising, this traveled up and down the management chain of command until it finally landed on the desk of the Sales Manager who was told to fire the salesman. Dutifully, my friend called him into his office, explained the situation, and gave the salesman the option of allowing him to either resign or be terminated. The salesman flew into a rage and called the Sales Manager every name in the book and came close to exchanging blows with him. It was very ugly.I t
nalyze the strength and weaknesses of your current management team. "If we lived in a perfect world, there wouldn't be a need for managers." - Bryce's LawINTRODUCTIONI recently had a good friend experience a troubling termination of an employee. This was for a national retail distribution company where my friend serves as Sales Manager for one of the company's regional outlets. The problem centered on a young (thirty-ish) salesman who was well trained but acted like a loose cannon, e.g., policies and procedures weren't always followed, and he was caustic and abrasive with customers and suppliers alike. This inevitably resulted in some serious customer relations problems for the company. On more than one occasion, my friend was called in to bail out the salesman. His conduct and attitudes were well documented in his performance reviews and my friend went beyond the call of duty to counsel the salesman. Regardless, the salesman recently insulted a young female supplier by using the legendary "f***" word on the telephone (along with several other choice expletives). Not surprising, this traveled up and down the management chain of command until it finally landed on the desk of the Sales Manager who was told to fire the salesman. Dutifully, my friend called him into his office, explained the situation, and gave the salesman the option of allowing him to either resign or be terminated. The salesman flew into a rage and called the Sales Manager every name in the book and came close to exchanging blows with him. It was very ugly.I t
Look for critical areas of expertise and knowledge that your company could use help with such as marketing, legal, finance, eCommerce, and research and development or information technology. If your company is planning on going public within the next few years, seek out advisors who have successfully taken companies down that path.
Set clear, written goals and objectives for your board of advisors.
Getting maximum value from a board of advisors begins with clear objectives and goals. Board members must know why they have been asked to serve and what is expected of them.
Before establishing the board, the CEO and senior managers should sit down and ask some of the following questions:
1. What are the main areas we need advice and guidance in?
2. What specifically do we need the board members to do for us?
3. Who are a few potential candidates for board membership?
4. How do we avoid giving away too much control to outsiders?
5. What will be the powers and limitations of the board?
6. What will setting up the board cost initially? Annually? Will it be worth the cost?
Determine the size and structure of your board.
Advisory boards range in size from two members to over thirty. The right size depends on many factors, such as your company’s size, complexity, stage of development and individual skills needed. My experience and research has found that for most small to mid-sized, growing companies or start-ups, a 5 to 7 member advisory board is an ideal size. Smaller firms can start with just one or two members and add new members as they grow.
Recruiting Candidates
Determining whom you invite to join your board is one of the most critical decisions in setting up a board of advisors. Often a business owner’s first instinct is to ask friends, family members or professional advisors to sit on their board. This is usually a mistake. Unless your friend or family member is a recognized authority in an area of expertise lacking by your management team or a highly successful entrepreneur, they are probably not the wisest choice.
Another reason to avoid asking family or friends to join your board is lack of objectivity. Often advice from a friend, family member or management insider is sugar coated to protect relationships. An outside advisor can give you a much more objective and honest assessment of the situation.
Using professional advisors such as your lawyer, banker or accountant as board members has it’s own pitfalls. These advisors are already working for you and may not be as objective as you need, due to having an interest in generating future business from your company.
Some critical action steps for recruiting a dynamite board of advisors are:
CRM Star Wars: When Marketing is from Venus and IT is from Mars
Inherent tensions exist between marketing and IT. This is often compounded by lots of cross-talk, with each function on different channels. When tension becomes unresolved conflict, CRM strategy is impossible to execute. To avoid clashes, it helps to understand that CRM is not just about the exchange of information, it's about the exchange of relationships. And every effective relationship includes a fair amount of conflict. The key is in how you handle it.Conflict as a CatalystConflict is a fact of work life. It can be especially pronounced when the two parties involved see the world from different lenses, as is often the case with marketing and IT. Conflict can be the catalyst for creativity resulting in innovative, productive teams. It can also be the catalyst for emotionality, polarizing people and generating counter-productive behavior. Let's look at the following scenario to see how conflicts can be managed.Situation:Executive management wants to encourage the use of teams to streamline decision-making and communications during CRM implementation.Marketing:You are the marketing vice-president, co-chairing the CRM cross-functional implementation team. You know little to nothing about technology implementation but you really believe in the CRM philosophy and the power of the technology to make things happenfor the sales force. This week two key people from the IT staff, who were supposed to be on the CRM team, did not show up for the weekly meeting. You need these people to particip
candidates for board membership?Inherent tensions exist between marketing and IT. This is often compounded by lots of cross-talk, with each function on different channels. When tension becomes unresolved conflict, CRM strategy is impossible to execute. To avoid clashes, it helps to understand that CRM is not just about the exchange of information, it's about the exchange of relationships. And every effective relationship includes a fair amount of conflict. The key is in how you handle it.Conflict as a CatalystConflict is a fact of work life. It can be especially pronounced when the two parties involved see the world from different lenses, as is often the case with marketing and IT. Conflict can be the catalyst for creativity resulting in innovative, productive teams. It can also be the catalyst for emotionality, polarizing people and generating counter-productive behavior. Let's look at the following scenario to see how conflicts can be managed.Situation:Executive management wants to encourage the use of teams to streamline decision-making and communications during CRM implementation.Marketing:You are the marketing vice-president, co-chairing the CRM cross-functional implementation team. You know little to nothing about technology implementation but you really believe in the CRM philosophy and the power of the technology to make things happenfor the sales force. This week two key people from the IT staff, who were supposed to be on the CRM team, did not show up for the weekly meeting. You need these people to particip
4. How do we avoid giving away too much control to outsiders?
5. What will be the powers and limitations of the board?
6. What will setting up the board cost initially? Annually? Will it be worth the cost?
Determine the size and structure of your board.
Advisory boards range in size from two members to over thirty. The right size depends on many factors, such as your company’s size, complexity, stage of development and individual skills needed. My experience and research has found that for most small to mid-sized, growing companies or start-ups, a 5 to 7 member advisory board is an ideal size. Smaller firms can start with just one or two members and add new members as they grow.
Recruiting Candidates
Determining whom you invite to join your board is one of the most critical decisions in setting up a board of advisors. Often a business owner’s first instinct is to ask friends, family members or professional advisors to sit on their board. This is usually a mistake. Unless your friend or family member is a recognized authority in an area of expertise lacking by your management team or a highly successful entrepreneur, they are probably not the wisest choice.
Another reason to avoid asking family or friends to join your board is lack of objectivity. Often advice from a friend, family member or management insider is sugar coated to protect relationships. An outside advisor can give you a much more objective and honest assessment of the situation.
Using professional advisors such as your lawyer, banker or accountant as board members has it’s own pitfalls. These advisors are already working for you and may not be as objective as you need, due to having an interest in generating future business from your company.
Some critical action steps for recruiting a dynamite board of advisors are:
Trade Show Booths
A trade show is an ideal way of showcasing your products and services to several potential customers who are all at one location, at the same time. Trade show booths are one of the best methods of direct contact systems with consumers. The opportunity to meet face to face with customers can provide some excellent results.Surveys show that in the U.S. and Canada, more than approximately 110 million people attend 4,000 tradeshows annually. Many of these could turn out to be your potential customers, and they attend the trade shows with purchasing authority for their companies.They are looking for information about your products and services, just as they would in a retail store. But unlike the retail store windows, you have approximately three seconds to grab someone's attention, so your display must be eye-catching.Setting up a compelling trade show booth is a very important step. A trade show booth can be made to appear unique and stand out from the rest by carefully showing pleasant features in an original manner. This can ultimately be the key for a successful trade show campaign.You need to keep in mind the main aim of the show, primarily to catch people's attention; the trick lies in the detailing of the whole set-up. It is often these small, but many times overlooked, details that have the power to catch the attention of tradeshow attendees.Your exhibition booth is the window to your company. It is probably the only thing at a trade show that tells people about who you are as an organi
ends, family members or professional advisors to sit on their board. This is usually a mistake. Unless your friend or family member is a recognized authority in an area of expertise lacking by your management team or a highly successful entrepreneur, they are probably not the wisest choice. A trade show is an ideal way of showcasing your products and services to several potential customers who are all at one location, at the same time. Trade show booths are one of the best methods of direct contact systems with consumers. The opportunity to meet face to face with customers can provide some excellent results.Surveys show that in the U.S. and Canada, more than approximately 110 million people attend 4,000 tradeshows annually. Many of these could turn out to be your potential customers, and they attend the trade shows with purchasing authority for their companies.They are looking for information about your products and services, just as they would in a retail store. But unlike the retail store windows, you have approximately three seconds to grab someone's attention, so your display must be eye-catching.Setting up a compelling trade show booth is a very important step. A trade show booth can be made to appear unique and stand out from the rest by carefully showing pleasant features in an original manner. This can ultimately be the key for a successful trade show campaign.You need to keep in mind the main aim of the show, primarily to catch people's attention; the trick lies in the detailing of the whole set-up. It is often these small, but many times overlooked, details that have the power to catch the attention of tradeshow attendees.Your exhibition booth is the window to your company. It is probably the only thing at a trade show that tells people about who you are as an organi
Another reason to avoid asking family or friends to join your board is lack of objectivity. Often advice from a friend, family member or management insider is sugar coated to protect relationships. An outside advisor can give you a much more objective and honest assessment of the situation.
Using professional advisors such as your lawyer, banker or accountant as board members has it’s own pitfalls. These advisors are already working for you and may not be as objective as you need, due to having an interest in generating future business from your company.
Some critical action steps for recruiting a dynamite board of advisors are:
Board members expect and deserve to be compensated for their time, efforts and advice.
Typical advisory board compensation includes a stipend from $5,000 to $25,000 per member, per year. Some companies pay their board members per meeting, with payment ranging from $500 to $3,000 per meeting, with a monthly retainer of $500 to $2,500. Companies should also cover transportation, meals and lodging for members when attending meetings.
Most successful boards also give or require members to buy stock or some form of equity in the company. This gives the board members equity participation and a vested interest in the growth of the company.
Pitfalls to Avoid
Some potential problem areas to avoid when setting up or working with your advisory board are:
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