As an advisory board consultant and facilitator I see companies and CEOs all the time who would benefit from having an advisory board.  Often the CEO is hesitant because the financial records aren’t perfect, there is no sales or marketing plan, the marketing campaign is faltering or some other reason.  About the only acceptable reasons not to start are either the CEO can’t accept constructive criticism or the company simply isn’t ready.

So how do you know when it’s time?  Consider the twelve questions:

1. Is there is insufficient depth to the senior management team?
2. Do you meet with your attorney and accountant only on an as needed basis but need broader advice?
3. Do you often ask friends and family for advice?
4. Does the vision for the company call for rapid growth but you don’t have a strategy developed or a tactical plan?
5. Has the company outgrown the existing infrastructure and you aren’t sure where and how to proceed?
6. Does the company’s growth depend on expanding the roles of various functional areas but the cash flow won’t support hiring full-time staff?
7. Do you belong to a CEO forum group but need the focus to be more on your company?
8. Are you thinking of bringing family into the business and don’t want to upset loyal employees?
9. Do you need to develop an exit strategy and/or succession plan?
10. Do the senior managers need guidance and assistance but the company can’t afford consulting fees?
11. Are you thinking of forming a legal board of directors?
12. Do you sit on an advisory board and see how much value it brings to that company and the management team?

If you answer yes to 9 or more, then you are ready to start forming an advisory board. 8 or less yes answers and you are either still in the considering stage or it’s not time yet.

Want to know more about establishing an advisory board?  Check out the Advisory Board Kit.