Put simply, the Advisory Board is made up of around four individuals that bring experience, knowledge, and contacts to the company, and play an overseeing role to ensure that the business stays on track, and to challenge the founders or directors on what they are doing and why.
When it comes to raising funds any investor would much prefer to see that an Advisory Board is in place as this both reduces the risks for them and increases the chances of growth of the company.
It is best if the Advisory Board is made up with members of complimentary skills although this is not always necessary as long as they bring the knowledge and experience gained over time.
Whilst the members all act in a non executive role, the majority of members would normally be quite passive other than attending regular board meetings and being available when required. We would also recommend, however, that companies should have at leat one or two members that play a much more proactive and ‘hands on’ role and add even more value to the business.
We at BOOM & Partners are increasingly being asked to join Advisory Boards and where we feel that we are able to bring real value to the client we are happy to accept. We can be either passive or active, depending on the clients needs, but we would typically prefer a more active role and to add as much value as we can. If you would prefer we can also become a non-executive director (NED) or act as Chair.
in British English