How to build_an_advisory_board_step-by-step_checklist
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Transcript of How to build_an_advisory_board_step-by-step_checklist
Building an Advisory Board Checklistpowered by FoundersuiteTM
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�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.
Building an Advisory Board Checklistpowered by FoundersuiteTM
www.foundersuite.com
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�$GYLVRU\��������%RDUG��Y��WHUWLDU\�UHVSRQVLELOLW\�LV�WR�DGYLVH�RQ�NH\�GHFLVLRQV�RU�SURGXFW�LQSXW�YLD�SHULRGLF� conference calls or emails.
Building an Advisory Board Checklistpowered by FoundersuiteTM
www.foundersuite.com
11. Paper it up���$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��