How to build_an_advisory_board_step-by-step_checklist

3
Building an Advisory Board Checklist powered by Foundersuite TM www.foundersuite.com 1. Understand what an Advisory Board is all about, and if it’s right for you, commit to it. Is an Advisory Board right for your startup? Do you have glaring holes in your team or H[SHULHQFH OHYHO WKDW \RX QHHG WR ¿OO EXW GRQ¶W ZDQW WR KLUH" $UH \RX ZLOOLQJ WR JLYH XS D PHDQLQJIXO DPRXQW RI HTXLW\ LQ \RXU FRPSDQ\ WR SOXJ WKHVH KROHV" $UH \RX ZLOOLQJ WR SXW LQ D QRQWULYLDO DPRXQW RI WLPH DQG HIIRUW WR UHFUXLW SLWFK FORVH DQG PDQDJH \RXU DGYLVRUV" ,I WKH DQVZHU WR WKH DERYH LV ³\HV´ WKHQ FDUU\ RQ 2. Make a wish list of skills and talents for your “Dream Team.” %HIRUH QDPLQJ QDPHV ¿UVW LGHQWLI\ WKH W\SHV RI DGYLVRUV \RX QHHG 6WDUW E\ LGHQWLI\LQJ ZKDW \RX¶UH ODFNLQJ²GR \RX QHHG VRPHRQH ZKR¶V DQ H[SHUW LQ VWDUWXS RSHUDWLRQV RU LQ UDLVLQJ FDSLWDO" 6RPHRQH ZKR LV D 35 H[SHUW RU D IXQQHO DQDO\WLFV JXUX" 6RPHRQH ZKR KDV VFDOHG DQ ,7 GHSDUWPHQW RU ZKR KDV D GHHS PRELOH HQJLQHHULQJ EDFNJURXQG" $UH \RX ORRNLQJ IRU JHQHUDO ZLVGRP VSHFL¿F JXLGDQFH RU MXVW DQ H[SDQGHG QHWZRUN" 3. Determine the ideal size of your Board. .QRZLQJ KRZ PDQ\ JDSV H[LVW ZLOO KHOS \RX GHWHUPLQH WKH VL]H RI \RXU %RDUG GR \RX ZDQW DGYLVRUV RU " .HHS LQ PLQG WKDW \RX ZLOO OLNHO\ QHHG WR RIIHU HDFK DGYLVRU EHWZHHQ DQG RI \RXU FRPSDQ\ WKXV D ODUJH $GYLVRU\ %RDUG PLJKW ³FRVW´ \RX RI \RXU FRPSDQ\ $OVR NHHS LQ PLQG LW WDNHV D VLJQL¿FDQW DPRXQW RI HIIRUW DQG WLPH WR PDQDJH DQG XWLOL]H VXFK D ODUJH %RDUG 1RWH PRVW VWDUWXS %RDUGV DUH SHRSOH WRWDO 4. Setup a method to track targets. 8VLQJ WKH )RXQGHUVXLWH VSUHDGVKHHW FDOOHG ³Advisory %RDUG 7DUJHW /LVW´ RU RQ D ZKLWH ERDUG PDNH D WDEOH ZLWK WKH &DWHJRULHV LGHQWL¿HG LQ 6WHS 7ZR DFURVV WKH WRS RI HDFK FROXPQ HJ ³)XQGUDLVLQJ ([SHULHQFH _ %LJ 'DWD %DFNJURXQG _ 0DUNHWLQJ DQG 35´ DQG VR IRUWK Start adding names. 1RZ WKH IXQ EHJLQV DV ZH DGG DFWXDO QDPHV WR RXU WDUJHW OLVW :KHUH WR JHW LGHDV" <RXU H[LVWLQJ QHWZRUN DQG SHRSOH \RX¶YH ZRUNHG ZLWK LQ WKH SDVW IRU D VWDUW <RX FDQ DOVR JHW LGHDV RI WDUJHWV IURP DUWLFOHV FRQIHUHQFHV EORJ SRVWV 7ZLWWHU &UXQFK%DVH DQG /LQNHG,Q )RU H[DPSOH OHW¶V VD\ \RX QHHG DQ DGYLVRU ZLWK GHHS H[SHULHQFH UXQQLQJ RQOLQH DG QHWZRUNV <RX PLJKW VWDUW E\ UHYLHZLQJ VWDUWXSV WKDW ZHUH SDUW RI WKH ¿UVW ZDYH RI RQOLQH DG QHWZRUNV DQG LGHQWLI\LQJ IRXQGHUV WKDW KDG VXFFHVVIXO H[LWV 6XFK SHRSOH PDNH JUHDW FDQGLGDWHV²WKH\ KDYH WKH VFDU WLVVXH QHWZRUN DQG H[SHULHQFH \RX QHHG 0DQ\ VXFFHVVIXO IRUPHU HQWUHSUHQHXUV DUH DOVR PRUH ZLOOLQJ WR FRDFK RWKHUV 1DWXUDOO\ \RX¶OO KDYH D PXFK EHWWHU ³KLW UDWH´ ZKHQ UHDFKLQJ RXW WR SHRSOH ZKR DOUHDG\ NQRZ \RX EXW LW¶V ZHOO ZRUWK WKH HIIRUW WR H[SDQG \RXU QHWZRUN RXWVLGH WKH µNQRZQ TXDQWLWLHV¶ DV ZHOO LW¶V ZKDW QHWZRUNLQJ LV DOO DERXW 6R \RX¶YH GHFLGHG WR EXLOG DQ $GYLVRU\ %RDUG IRU \RXU VWDUWXS" *RRG IRU \RX $Q $GYLVRU\ %RDUG FDQ EH DQ HIIHFWLYH ZD\ WR JDLQ LQVLJKW JXLGDQFH DQG FRQQHFWLRQV IRU UHODWLYHO\ OLWWOH FRVW )ROORZ WKHVH VWHSV WR EXLOG \RXU LGHDO %RDUG Color key Orange PHDQV WKHUH¶V D WHPSODWH LQ WKH %XQGOH Blue is a hyper link.

Transcript of How to build_an_advisory_board_step-by-step_checklist

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Building an Advisory Board Checklistpowered by FoundersuiteTM

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1. Understand what an Advisory Board is all about, and if it’s right for you, commit to it. Is an Advisory Board right for your startup? Do you have glaring holes in your team or

�����H[SHULHQFH�OHYHO�WKDW�\RX�QHHG�WR�¿OO��EXW�GRQ¶W�ZDQW�WR�KLUH"��$UH�\RX�ZLOOLQJ�WR�JLYH�XS�D������PHDQLQJIXO�DPRXQW�RI�HTXLW\�LQ�\RXU�FRPSDQ\�WR�SOXJ�WKHVH�KROHV"��$UH�\RX�ZLOOLQJ�WR�SXW�LQ������D�QRQ�WULYLDO�DPRXQW�RI�WLPH�DQG�HIIRUW�WR�UHFUXLW��SLWFK��FORVH��DQG�PDQDJH�\RXU�DGYLVRUV"�,I������WKH�DQVZHU�WR�WKH�DERYH�LV�³\HV�´�WKHQ�FDUU\�RQ���

2. Make a wish list of skills and talents for your “Dream Team.”��%HIRUH�QDPLQJ�QDPHV�������¿UVW�LGHQWLI\�WKH�W\SHV�RI�DGYLVRUV�\RX�QHHG���6WDUW�E\�LGHQWLI\LQJ�ZKDW�\RX¶UH�ODFNLQJ²GR������\RX�QHHG�VRPHRQH�ZKR¶V�DQ�H[SHUW�LQ�VWDUWXS�RSHUDWLRQV��RU�LQ�UDLVLQJ�FDSLWDO"��6RPHRQH������ZKR�LV�D�35�H[SHUW��RU�D�IXQQHO�DQDO\WLFV�JXUX"��6RPHRQH�ZKR�KDV�VFDOHG�DQ�,7������GHSDUWPHQW��RU�ZKR�KDV�D�GHHS�PRELOH�HQJLQHHULQJ�EDFNJURXQG"��$UH�\RX�ORRNLQJ�IRU������JHQHUDO�ZLVGRP��VSHFL¿F�JXLGDQFH��RU�MXVW�DQ�H[SDQGHG�QHWZRUN"���

3. Determine the ideal size of your Board.��.QRZLQJ�KRZ�PDQ\�JDSV�H[LVW�ZLOO�KHOS�\RX������GHWHUPLQH�WKH�VL]H�RI�\RXU�%RDUG��GR�\RX�ZDQW���DGYLVRUV�RU��"��.HHS�LQ�PLQG�WKDW�\RX�ZLOO������OLNHO\�QHHG�WR�RIIHU�HDFK�DGYLVRU�EHWZHHQ�������DQG����RI�\RXU�FRPSDQ\��WKXV��D�ODUJH������$GYLVRU\�%RDUG�PLJKW�³FRVW´�\RX������RI�\RXU�FRPSDQ\���$OVR�NHHS�LQ�PLQG�LW�WDNHV�D������VLJQL¿FDQW�DPRXQW�RI�HIIRUW�DQG�WLPH�WR�PDQDJH�DQG�XWLOL]H�VXFK�D�ODUJH�%RDUG���1RWH��PRVW������VWDUWXS�%RDUGV�DUH�����SHRSOH�WRWDO��

4. Setup a method to track targets.��8VLQJ�WKH�)RXQGHUVXLWH�VSUHDGVKHHW�FDOOHG�³Advisory

�����%RDUG�7DUJHW�/LVW�´�RU�RQ�D�ZKLWH�ERDUG��PDNH�D�WDEOH�ZLWK�WKH�&DWHJRULHV�LGHQWL¿HG�LQ�6WHS������7ZR�DFURVV�WKH�WRS�RI�HDFK�FROXPQ��H�J��³)XQGUDLVLQJ�([SHULHQFH��_��%LJ�'DWD�%DFNJURXQG�_�������0DUNHWLQJ�DQG�35´�DQG�VR�IRUWK��

����Start adding names.��1RZ�WKH�IXQ�EHJLQV�DV�ZH�DGG�DFWXDO�QDPHV�WR�RXU�WDUJHW�OLVW��������:KHUH�WR�JHW�LGHDV"��<RXU�H[LVWLQJ�QHWZRUN�DQG�SHRSOH�\RX¶YH�ZRUNHG�ZLWK�LQ�WKH�SDVW��IRU�D������VWDUW���<RX�FDQ�DOVR�JHW�LGHDV�RI�WDUJHWV�IURP�DUWLFOHV��FRQIHUHQFHV��EORJ�SRVWV��7ZLWWHU�������&UXQFK%DVH��DQG�/LQNHG,Q���)RU�H[DPSOH��OHW¶V�VD\�\RX�QHHG�DQ�DGYLVRU�ZLWK�GHHS������H[SHULHQFH�UXQQLQJ�RQOLQH�DG�QHWZRUNV���<RX�PLJKW�VWDUW�E\�UHYLHZLQJ�VWDUWXSV�WKDW�ZHUH������SDUW�RI�WKH�¿UVW�ZDYH�RI�RQOLQH�DG�QHWZRUNV��DQG�LGHQWLI\LQJ�IRXQGHUV�WKDW�KDG�VXFFHVVIXO������H[LWV���6XFK�SHRSOH�PDNH�JUHDW�FDQGLGDWHV²WKH\�KDYH�WKH�VFDU�WLVVXH��QHWZRUN��DQG������H[SHULHQFH�\RX�QHHG���0DQ\�VXFFHVVIXO�IRUPHU�HQWUHSUHQHXUV�DUH�DOVR�PRUH�ZLOOLQJ�WR�FRDFK������RWKHUV���1DWXUDOO\��\RX¶OO�KDYH�D�PXFK�EHWWHU�³KLW�UDWH´�ZKHQ�UHDFKLQJ�RXW�WR�SHRSOH�ZKR������DOUHDG\�NQRZ�\RX��EXW�LW¶V�ZHOO�ZRUWK�WKH�HIIRUW�WR�H[SDQG�\RXU�QHWZRUN�RXWVLGH�WKH�µNQRZQ������TXDQWLWLHV¶�DV�ZHOO��LW¶V�ZKDW�QHWZRUNLQJ�LV�DOO�DERXW�

6R�\RX¶YH�GHFLGHG�WR�EXLOG�DQ�$GYLVRU\�%RDUG�IRU�\RXU�VWDUWXS"��*RRG�IRU�\RX���$Q�$GYLVRU\�%RDUG�FDQ�EH�DQ�HIIHFWLYH�ZD\�WR�JDLQ�LQVLJKW��JXLGDQFH�DQG�FRQQHFWLRQV�IRU�UHODWLYHO\�OLWWOH�FRVW���)ROORZ�WKHVH�VWHSV�WR�EXLOG�\RXU�LGHDO�%RDUG�

Color key��Orange�PHDQV�WKHUH¶V�D�WHPSODWH�LQ�WKH�%XQGOH��Blue is a hyper link.

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6. Get your story straight.���%HIRUH�UHDFKLQJ�RXW�WR�\RXU�WDUJHWV��LW¶V�FULWLFDO�WR�KDYH�DQ������DWWUDFWLYH�SLWFK�GHYHORSHG���:K\�VKRXOG�D�KLJK�YDOXH��SURPLQHQW�H[SHUW�ZDQW�WR�ZRUN�ZLWK������\RX²D�ULVN\��XQIXQGHG�VWDUWXS�WKDW�QR�RQH�KDV�KHDUG�RI"��$SSURDFK�LW�IURP�WKHLU������SHUVSHFWLYH²ZKDW¶V�LQ�LW�IRU�WKHP"���<RXU�SLWFK�VKRXOG�WHOO�WKH�VWRU\�RI�ZK\�\RXU�VWDUWXS�LV������RQ�WKH�SDWK�WR�EHLQJ�D�JDPH�FKDQJHU��DQG�WKXV�WKH�HTXLW\�\RX¶UH�RIIHULQJ�ZLOO�EH�HYHQWXDOO\������EH�ZRUWK�VRPHWKLQJ����'RQ¶W�IRUJHW�WKH�LQWDQJLEOHV��WRR²\RX¶UH�SLWFKLQJ�WKHP�D�ZD\�WR������H[SHULHQFH�WKH�H[FLWHPHQW�RI�D�VWDUWXS�ZLWKRXW�WKH�GDLO\�VORJ���$V�IRU�IRUPDW��XVH�DQ� ([HFXWLYH�6XPPDU\ or a shortened form of your investor 3LWFK�'HFN������VOLGHV���

7. Get your offer together.��*RLQJ�KDQG�LQ�KDQG�ZLWK�\RXU�SLWFK�LV�WKH�FRPS�SDFNDJH�\RX�ZLOO������RIIHU�SRWHQWLDO�DGYLVRUV²WKH�³JLYH´�SDUW�RI�WKH�³DVN�DQG�JLYH´�HTXDWLRQ��$GYLVRUV�DUH������FRPSHQVDWHG�XVLQJ�UHVWULFWHG�FRPPRQ�VWRFN�RU�VWRFN�RSWLRQV��DQG�D�W\SLFDO�UDQJH�LV������������WR������RI�\RXU�FRPSDQ\��WKRXJK�D�SDUWLFXODUO\�YDOXDEOH��DFWLYH��DQG�HQJDJHG�DGYLVRU�PD\������ZDUUDQW�PRUH��H�J��������WR��������,Q�DGGLWLRQ��WKH�HDUOLHU�\RXU�VWDUWXS��WKH�PRUH�LQ�HTXLW\������\RX�VKRXOG�RIIHU��WKXV��LI�\RX¶UH�DW�WKH�LGHD�RU�VHHG�VWDJH��EXPS�XS�WKH�QXPEHUV�E\������������RU�VR���6HH�WKH�)$67�6WDQGDUG�$GYLVRU\�%RDUG�7HPSODWH��FUHDWHG�E\�WKH�Founder Institute� for some additional ranges. Keep in mind there are no hard and fast rules here; everything

is negotiated.

����Get introduced (or ask really nicely).��1RZ�LW¶V�WLPH�WR�ZRUN�\RXU�QHWZRUN��KDUG��+LJK�������YDOXH�DGYLVRUV�DUH�EXV\�IRONV�DQG�WHQG�WR�JHW�D�ORW�RI�XQVROLFLWHG�UHTXHVWV�IRU�WKHLU�WLPH�DQG������DWWHQWLRQ��\RXU�MRE�LV�WR�VWDQG�RXW�E\�JHWWLQJ�DQ�LQWURGXFWLRQ�YLD�D�FRPPRQ�FRQQHFWLRQ��������/LQNHG,Q�LV�JUHDW�IRU�WKLV�SXUSRVH²VLPSO\�SOXJ�LQ�\RXU�WDUJHW�DGYLVRU¶V�QDPHV��DQG�VHH�ZKR������LQ�\RXU�QHWZRUN�FDQ�FRQQHFW�\RX���,I�WKHUH�DUH�PRUH�WKDQ�WZR�GHJUHHV�RI�VHSDUDWLRQ��\RX������PLJKW�DV�ZHOO�PDNH�D�FROG�FDOO���FROG�HPDLO��VHH�RXU�$GYLVRU�5HTXHVW�(PDLO�7HPSODWH for an

�����H[DPSOH��,I�\RX�GRQ¶W�KHDU�EDFN��GR�IROORZ�XS�RQFH�RU�WZLFH��EXW�LI�\RX�VWLOO�KDYHQ¶W�UHFHLYHG������D�UHVSRQVH�LQ�WKUHH�WULHV��WKDW�WKDW�DV�D�³QR�´�'RQ¶W�EH�D�QXLVDQFH�

9. Push toward a yes / no; drive the process���2QFH�\RX¶YH�PDGH�FRQWDFW��H[SHFW�D�IHZ������FDOOV��GHPRV��RU�PHHWLQJV�WR�FKDW�DERXW�ZKDW�\RX¶UH�GRLQJ��DQG�ZKDW�VRUW�RI�KHOS�\RX¶UH������ORRNLQJ�IRU���7KLV�SURFHVV�LV�QRW�XQOLNH�SLWFKLQJ�DQ�LQYHVWRU�RU�UHFUXLWLQJ�D�KLJK�YDOXH������HPSOR\HH²\RX¶UH�VHOOLQJ�WKHP�RQ�\RX�DQG�\RXU�FRPSDQ\��DQG�RYHUFRPLQJ�REMHFWLRQV���������([SHFW�WR�JHW�LJQRUHG�RU�UHMHFWHG�E\�DW�OHDVW�KDOI�RI�\RXU�WDUJHW�OLVW²WKDW¶V�RN���2I�WKRVH�ZKR������DUH�LQWHUHVWHG��JHW�D�FRQGLWLRQDO�\HV�DQG�JHW�UHDG\�WR�JHW�LQWR�GHWDLOV���

�����Set expectations clearly.�2QFH�\RX¶YH�JRW�DQ�DGYLVRU¶V�EX\�LQ�RU�YHUEDO�FRPPLWPHQW���������LW¶V�FULWLFDO�WKDW�\RX�EH�H[WUHPHO\�FOHDU�RQ�\RXU�H[SHFWDWLRQV²HUU�RQ�WKH�VLGH�RI�EHLQJ��������RYHUO\�H[SOLFLW���$�µUHDVRQDEOH¶�VFRSH�IRU�DQ�DGYLVRU�UROH�PLJKW�EH�VRPHWKLQJ�OLNH�WKH��������IROORZLQJ��L����RU���\HDU�GXUDWLRQ��FDQFHOODEOH�E\�HLWKHU�SDUW\�ZLWK����GD\V�QRWLFH���������LL��H[SHFWHG�LQYROYHPHQW�OHYHO�RI�DURXQG�����KRXUV�SHU�PRQWK��RQ�DYHUDJH��LLL��SULPDU\��������UHVSRQVLELOLW\�LV�WR�LQWURGXFH�WKH�FRPSDQ\�WR������UHOHYDQW�LQYHVWRUV��LY��VHFRQGDU\��������UHVSRQVLELOLW\�LV�WR�SDUWLFLSDWH�LQ�PRQWKO\�VWUDWHJ\�PHHWLQJV�ZLWK�WKH�UHVW�RI�WKH�$GYLVRU\��������%RDUG��Y��WHUWLDU\�UHVSRQVLELOLW\�LV�WR�DGYLVH�RQ�NH\�GHFLVLRQV�RU�SURGXFW�LQSXW�YLD�SHULRGLF� conference calls or emails.

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11. Paper it up���$VVXPLQJ�\RXU�WDUJHW�DGYLVRUV�DUH�VWLOO�DURXQG�DIWHU�\RX�H[SODLQ�ZKDW¶V��������H[SHFWHG�RI�WKHP��WKH�QH[W�VWHS�LV�WR�PDNH�LW�OHJDO�DQG�SURSHU���6HH�WKH�³Advisory Board

�������2IIHU�/HWWHU´�DQG�³:DUUDQW�7R�3XUFKDVH�6KDUHV´�VDPSOHV��WKHVH�DVVXPH�\RX�KDYH��������DOUHDG\�LQFRUSRUDWHG��VLQFH��DIWHU�DOO��\RX¶UH�XVLQJ�HTXLW\�DV�FXUUHQF\�WR�FRPSHQVDWH�\RXU��������DGYLVRUV����$OVR�VHH�WKH�)$67�6WDQGDUG�$GYLVRU\�%RDUG�7HPSODWH��ZKLFK�DOORZV�\RX�WR��������RIIHU�RSWLRQV�WR�SXUFKDVH�VWRFN��DV�DQ�DOWHUQDWLYH�WR�GLUHFWO\�RIIHULQJ�VWRFN����7R�QRWH��WKLV�LV� a good time to involve your attorneys.

12. Make the most of your Advisory Board���7KLV�¿QDO�VWHS�LV�ZKHUH�PDQ\�HQWUHSUHQHXUV�IDLO��������KDUG²WKH\�GR�WKH�ZRUN�RI�UHFUXLWLQJ�NH\�DGYLVRUV��WKHQ�IDLO�WR�DFWLYHO\�XVH�WKHP��WKH\�JHW��������EXV\�DQG�QHJOHFW�RU�XQGHU�XWLOL]H�WKHLU�%RDUG����$�IHZ�NH\�WLSV�WR�UHPHG\�WKLV��

First��NLFNRII�\RXU�VKLQ\�QHZ�%RDUG�E\�WKURZLQJ�D�GLQQHU�RU�WDNH�WKHP�WR�WKH�EDOO� game; get them inspired and introduced to each other.

Second��VFKHGXOH�WKH�QH[W�����DGYLVRU\�PHHWLQJV�ZHOO�LQ�DGYDQFH��LQ�IDFW�JR�� � DKHDG�DQG�VFKHGXOH�WKH�HQWLUH�\HDU�LI�\RX�FDQ���6HQG�FDOHQGDU�LQYLWHV���%XV\� people need lots of advance notice.

Third��DQG�SHUKDSV�PRVW�LPSRUWDQW��NHHS�\RXU�DGYLVRUV�LQ�WKH�ORRS���7KH\�QHHG�� � PRQWKO\�RU�HYHQ�EL�ZHHNO\�XSGDWHV�RI�SURJUHVV��VHWEDFNV��DQG�UHTXHVWV�IRU�KHOS���� � 6HW�XS�DQ�HPDLO�GLVWULEXWLRQ�OLVW��RU�HYHQ�EHWWHU��XVH�)RXQGHUVXLWH¶V�3URJUHVV�� � 7UDFNHU��ZKLFK�ZH�EXLOW�IRU�WKLV�YHU\�SXUSRVH²WU\�LW�RXW�

Fourth��NHHS�\RXU�UHTXHVWV�WR�HDFK�DGYLVRU�ZLWKLQ�WKH�VFRSH�RI�WKHLU�H[SHUWLVH�VR�� � \RX�HVWDEOLVK�D�VXFFHVV�SDWWHUQ�ULJKW�DZD\��WKHQ�EXLOG�XSRQ�WKHVH�³HDUO\�ZLQV´� over the course of their tenure.

*RRG�OXFN���/HW�XV�NQRZ�ZKDW�WLSV�\RX�KDYH�WR�DGG�WR�WKLV�OLVW��