Forums: Discussions for entrepreneurs and small business.

I was recently inspired by my post on SUN to kick around the idea of forming a Board of Advisors.

Does anyone have any input on this? Good? Bad?

This is just an idea for now, I would really appreciate some feedback on this...

James

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James Skinner Vice President & COO OnlineSiding LLC jskinner@onlinesiding.com www.onlinesiding.com 877-642-2496 x102

this article may be of help, james.

http://www.startupnation.com/pages/articles/AT_Advice-for-En trepreneurs.asp

rich

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Rich Sloan , Co-Founder, Chief Startupologist, StartupNation

That was a great article, Rich.  This has been something we`ve been discussing lately ourselves.  Where I really struggle is how to compensate them.  I had someone a long time ago tell me you give them a small percentage of equity in your company (which is really nothing still) & if they believe in what you`re doing, they not only will be willing to wait, but will get a thrill out of knowing that they were key in the success.  What is that small percent though?  I have no idea what is appropriate.  Right now, my partners and I own the business 40/40/20.  Any insight would be much appreciated!

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Julie
http://www.timewiselv.com

Life Style Management - VIP Concierge - Virtual Concierge

equity that vests over the course of their advisory role is a common and effective practice. also, covering travel or paying a token fee can be a good practice - this can act symbolically as an indication that this is a serious role they`re assuming and they have treat it professionally, not casually.

remember this, too: you have to have very clear idea in your mind what they`re supposed to get out of this. is it monetary income? is it psychic income? is it stimulation? is it affiliation with other notable advisors? be sure you`re clear about this as you pitch and assemble your prospective advisory board members.

also, be sure you`re clear with them about any liabilities they assume by being an advisor. depending on how you craft it, they might not assume any fiduciary resonsibilities (as opposed to directors on a Board of Directors). this may make them more open to considering investing their time with you... knowing there`s not a lot of personal risk for them.

rich

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Rich Sloan , Co-Founder, Chief Startupologist, StartupNation

Rich,

Great article. You should post it at writingup.

See http://www.writingup.com/?referer=6406

FREE to join and post.

Regards Michael 

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Regards Michael Clayton (rexiedexie)

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