MONACO / ACCESSWIRE / November 21, 2018 / In today's world of business, startups are becoming the norm with most of them changing and disrupting the way business is being done. Startups have a way of challenging how things are done. They also have a unique way of approaching a problem and providing a solution.
Often, startups introduce unique business ideas for a product or a service which has not been thought of before. The entrepreneurs behind such ideas are usually fueled by a passion to solve a real-world problem, which they do so by providing a viable solution. Their passion is backed up with know-how, oftentimes more advanced than usual, and with lots of thinking out of the box. While these entrepreneurs may know their product very well and their market, there may be other areas in running a business that they are not as well-versed in.
Why an Advisory Board?
Mentorship is one of the reasons why startups need an advisory board. Entrepreneurs who recognize that they are lacking in certain skills in certain areas of business see how important it is to learn from others who have gone before them. An advisory board and one whose composition is well thought-of is the perfect vehicle for this kind of learning.
An advisory board is different from a company's Board of Directors however. According to Kelly Hoey, it is "a group of individuals selected by the entrepreneur who provide advice and help the company succeed." Unlike a formal board, the entrepreneur can choose advisors based "on needed skills or voids to fill within their company."
Selecting the Best Advisory Board for Your Business
How does an entrepreneur whether for a startup company or not go about choosing the best advisory board for his or her business? Before one can come up with a list of potential advisors to approach, there are several factors to consider. Startup founders who have done it generously share their experiences for other companies to take note of.
According to Melltoo's founder and COO Sharene Lee, a board of advisors provides crucial help in the areas of building credibility, providing expertise, and giving access to networks and relationships. Choosing advisors who are captains or leaders of the industry where one operates in will be a big boost to the company's credibility. If one convinces such leaders of how viable one's business idea is, it also says a lot about how good it is.
In the case of Melltoo, they developed a marketplace where secondhand items can be traded. While they knew their product and their market very well, they were shorthanded in online and international payment security. Recognizing this, they got an advisor who was an expert in the field. This expert worked with their security infrastructure team and helped them develop a system that lives up to international financial standards. It not only saved them from spending too much resources, it also saved them from spending too much time on such an important aspect of their business.