Tag Archive for "Board of Advisors"
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.
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- Marty Zwilling: Eight Questions Every Startup Hopes You Won’t Ask (huffingtonpost.com)
- 20 Questions To Ask Yourself Before Raising Money (eladgil.com)
I recently had a conversation with a woman who runs a successful business. We were updating each other on the focus our respective businesses when she announced to me that she had started an on-line bead business something quite different than her existing business. I looked at the website and asked her a few questions about the product and made a few suggestions on how to broaden her audience and increase overall sales. Throughout the discussion it was clear she hadn’t completely figured out her strategy and was perhaps a bit overwhelmed. Sensing this I suggested she consider using an “ad hoc advisory board.”
I define an ad hoc advisory board as a loosely assembled group of experts brought together to help the CEO or founder deal with one specific pressing issue. There is no intent for this group to continue on and become the permanent advisory board. To maximize the effectiveness of the gathering I do recommend someone familiar with advisory board facilitation run the meetings. In the case of the individual mentioned above the background of the experts would need to include a variety of marketing expertise, retail and on-line product sale experience and supply-side management.
Here are seven considerations for when you assemble an ad hoc advisory board: Continue Reading “How and Why to Use an Ad Hoc Advisory Board?” »
As an advisory board member you will be called upon to make introductions on behalf of the company. Today that very well could be helping them meet the appropriate bank lenders.
Before you are asked it’s important you be up-to-speed on what is going on. Here are two recent blog posts that discuss the state of small business lending and could be relevant to the companies you advise:
Five Tips for Finding Small Business Friendly Banks
Are Major Banks Keeping Their Small Business Lending Promises?
