If you are on the advisory board of a start-up that needs to raise money or an existing company going for a loan or investment here are ten questions the CEO and other senior executives must be able to answer when presenting:
- What is the product or service?
- Who is the proposed market? Primary? Secondary?
- How do you know there is a market, i.e. what type of market research has been conducted?
- Who is your competition and how will you differentiate yourself?
- What positions your company to be the best to meet the market demand?
- How will you market & promote the product?
- How will product/service be priced and what can the market afford?
- What resources do you need to start, to succeed, i.e. human, capital and financial?
- What are potential follow-on products?
- How will the investors get their money back?
Just one more item on the list of advisor responsibilities. As an advisor you are in the unique position to be a taskmaster making sure the answers to the above questions are on the tip of the CEO’s tongue. It is important the CEO be articulate, able to think on his feet, and doesn’t get flustered when asked a question about the business model. The phrase “don’t let them see you sweat” should be his motto and all members of the team should work to see that this happens.
To learn more about advisor roles & responsibilities consider the Advisory Board Kit: A Comprehensive Guide to Establishing an Advisory Board. You will learn how to set-up an advisory board in 90-120 days.
Do you serve on a nonprofit board of directors? Then see my blog posts on governance over on the Nonprofit Toolbox site.
Related articles by Zemanta
- Marty Zwilling: Eight Questions Every Startup Hopes You Won’t Ask (huffingtonpost.com)
- 20 Questions To Ask Yourself Before Raising Money (eladgil.com)
