Building Your Advisory Board

06/24/2019 Redacted Redacted

searcher

How did you guys and girls go about building your advisory board? I am having a hard time crafting the "right" ask.

I would greatly appreciate any advice and resources you can share. 

15 likes 143 views 14 comments

investor Hobart and William Smith Colleges - 06/25/2019

How many people, what composition, what work and time commitment, etc. Just start with bullet points.
Also why do you want one? Like an intern, they can be a real painintheass and a bigger distraction than help if you don't have a really good plan.

like reply | 4 likes

searcher - 06/26/2019

Jeff,
Thanks for the advice and feedback. I really appreciate it. ^[redacted]‌

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searcher Dartmouth College - Tuck School of Business at Dartmouth Columbia University University of Mumbai - 06/26/2019

Ryan - I attended a talk by Marissa Levin - she's an expert on how to build and get the most out of an advisory board. I read the book she handed out to each participant. Her book - or other similar books on Amazon.com - may be helpful for tips and tricks.

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searcher - 07/07/2019

Thank you, Anand! I appreciate the advice. ^[redacted]‌

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searcher Arizona State University Hult International Business School - 06/26/2019

Ryan, my mentor puts together advisory boards for businesses as part of his services. He is very good and knowledgeable and has been doing it for many years. If are interested in an introduction I could make that happen. Feel free to email me if you are interested.

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searcher - 07/07/2019

Thanks, Michael! I will send you an email. ^[redacted]‌

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professional Harvard University - Harvard Business School Dartmouth College - 06/27/2019

To Jeff's point, I bet this community could better help if you could articulate your objectives for your proposed board. For example, are you looking for industry experience to help source/screen deals in certain sectors, deal or functional experience that complements your own, or something else? Depending on the need it might only be an informal group of experts you call on periodically vs. a regularly schedule group meeting.

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searcher - 07/07/2019

Hi Dave,

Thanks for your comment. Yeah, I am looking to build the board so I can have help with deal screening/sourcing. ^[redacted]‌

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professional Harvard University - Harvard Business School Dartmouth College - 07/09/2019

Hi Ryan, I'd recommend starting with one or two advisor(s), focused where you need it most. Too many people on a board can become a distraction for you and also risks poor engagement. For what it's worth, in my first search, we had built a diverse investor base who knew ad hoc advice was part of the relationship. They were excited to engage whenever we needed it. So we didn't have a separate board, it was informally baked into the investor relationship. My second search was self-funded, though the vast majority of our original investors were standing by ready to invest on a deal by deal basis and available to field calls periodically. We asked one investor with very deep PE experience to be on call as a sounding board for deal structuring. We offered him equity, no cash comp. That relationship resulted from a lunch where we talked through a few current deals and closed by asking if he'd enjoy participating formally. In other words, we gave him a taste of the advice we were seeking and because we had history with him, it happened very naturally.

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searcher Cornell University - College of Business George Washington University Bowdoin College - 07/07/2019

I mean this in a productive way, but if I understand correctly what you are asking then your question scares me -- the normal answer is call a bunch of people you know, trust, and have a relationship with in the industry you are looking at and ask them to join your board -- should take about 10 minutes tops. These are the people you have worked with in the past who were great mentors, knew the industry, have great business instincts, etc. -- those people that you worked with in the past and said "he/she would be really knows whats going on in this industry and is great to work with." If you can't find that group of ~3-6 people who fit that criteria then I would seriously question whether putting in money with a personal guarantee is really a good idea. In this case, if I read correctly, you are also looking to build a board because you need help screening deals,in other words you either don't trust your own analysis or don't have your "finger on the pulse" of the industry. That worries me even more. Perhaps I am reading too much in, and I'm not trying to be Debbie Downer or question your ability, just pushing you to do more work on really being part of the industry and building your network ion the industry.

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searcher - 07/08/2019

Hey Robert,

Thanks for the feedback. I would have to disagree with your assumptions. I definitely have those people that you mentioned in your comment and I have a “pulse” on the industry I am looking to invest in. However, I have never approached any of my mentors to do anything for me except give me advice for personal or military career decisions. I was simply asking if there is certain verbiage that should be used when someone to be an advisor. I don’t think having multiple people to help source deals means you don’t trust your own analysis. I am sure there are things that I will overlook or not think to even ask, so having someone to look at it from a different lens is the goal here. Again, thanks for your feedback. ^[redacted]‌

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searcher Cornell University - College of Business George Washington University Bowdoin College - 07/11/2019

Ryan - Thanks for the additional info. Yes, my understanding of what /why is different than your reality and what you are doing makes sense. Let me know how I can be helpful!

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searcher - 07/15/2019

^[redacted]‌, thank you for the feedback. I will definitely keep that in mind.

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professional University of Edinburgh - Business School University of Idaho - 07/09/2019

Ryan - we just launched a platform that enables investors to connect with relevant advisors. I'd be happy to get you access to it to test drive and provide us feedback....let me know.

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