On the other hand, experienced board members also tell us that founders often don’t understand the benefits and assets that are usually on the table for free.
One thing at a time: What are the basic tasks of an advisory board? Contrary to some preconceptions, it is not simply a matter of securing investments via controlling figures or voting on transactions requiring approval. Rather, good boards are strategic sparring partners for the founders, who also have specialist expertise and networks and have already experienced many start-up situations themselves.
What makes this so valuable? Boards are protected spaces where people can argue (with dignity) and have different opinions, if not here – where? In addition, advice is usually provided free of charge, at least in the case of advisory boards that are also investors.
Another very important function should not be underestimated. Especially in times of crisis, when many fair-weather friends suddenly ‘ghost’ you, good advisory boards stay on board, help to find solutions and very often build bridges to shareholders and new investors.
There are three basic ingredients for founders to maximize the value of their boards:
1) Taking time to select the few but the right advisory board members. This also means only accepting those Advisory Board members who want to actively participate and not just perform controlling tasks.
2) Taking time to prepare the discussions with the Advisory Board members and also for the meetings themselves – preferably accompanied by a meal so that the meetings are on-site
3) Taking time to really listen to their Advisory Board members!
There are usually only winners from an open and trustful collaboration. On the one hand, it’s fun and on the other hand, the chances of increasing the value of the start-up increase significantly.
