The best short so what is The Advisors
From the earliest stage of the company on, as an entrepreneur you should try to assemble a board of advisors which can monitor the venture, give you advice and counsel, and most importantly provide leverage for your company through providing your venture with connections and credibility.
The board is probably the most important resource you can use to talk about some of the critical decisions affecting the company. You have to have somebody with experience who has been over the mountain and knows what it looks like so that they can guide. It is important to build a board that brings complementary skills to the company and the board itself should consist of complementary board members. They might not be able to give you answers, but their questions might make you think about things you might otherwise have overlooked. An entrepreneur should therefore communicate frequently with his board members. While trying to consult your board members as often as you can, you have to consider that the advisors are not there full-time. The advisory board cannot run your business. No matter how smart the board member are, someone spending only a certain percentage of their time thinking through a problem does not think through it as well as someone who is spending a 100% of their time and seven days a week.
An entrepreneur should be aggressive and very confident of whom to take on the board. Get people who are so good, that you are afraid to even call them. Be afraid because you know that they are so good, that you would feel stupid. Every time you come home from seeing them, you should say: “God, am I lucky that he spent time with me.” Get the best. And get them to introduce you to people that they think are better than they are. Get the most demanding advisors you can get.
In the board you should try to assemble people who are well known in the industry because this will give you additional credibility when you raise money or hire people. If you have some prominent members on the board, the perception of investors is that the company is more likely to succeed because it kind of passed the screen. Every board member should bring value-added to your company in the sense that they offer advice but that they also bring connections and credibility. Choose only board members who really provide leverage to your business. Also think about what incentives you can offer these people to join your board and to be an active board member. First of all, you need to be a very visible and interesting company to attract advisors. Therefore you should try to generate some positive press coverage to increase your level of visibility. Also whenever you can, find somebody who can introduce you to these people. Secondly, you need to
offer some equity as compensation. And thirdly, make it fun for them to be on your board. Many senior people like to be involved with small but promising startups. And always remember, even when you are still small do not settle for mediocre board members, but shoot for the stars in the industry! Because people are going to evaluate your venture by who you are with.
Assemble an advisory board which can give you advice, credibility and connections. Try to attract the most outstanding personalities in the industry who can really provide leverage to your business. Because people are going to evaluate your venture by who you are with.