Some entrepreneurs fail to leverage the knowledge and experiences of others by failing to create advisory boards. These boards are a critical component required to scale strong entrepreneurial opportunities.
Many times these failures begin with a simple lack of the understanding of the need or how to address it:
- Failure to understand the purpose and role of Advisory Boards.
- A lack of understanding the value an Advisory Board brings to the start-up and entrepreneur.
- Issues extending from previous, negative experiences with Advisory Boards.
- No knowledge of necessary steps in establishing an Advisory Board.
- A lack of the understanding of the attributes of Advisors to be engaged.
- The entrepreneurs don’t know what they don’t know.
Some of the failures to engage advisory boards stem from the belief by the entrepreneurs that she/he can accomplish the objectives alone and without the support of unrelated third parties. Or that in an effort to “boot-strap”, they don’t want to expend the resources:
- The entrepreneur feels she/he can do it themselves.
- They are too busy and feel as though she/he does not have time to waste debating with outsiders.
- Hesitancy to expend scarce resources for advice.
7 Reasons Advisory Boards are Critical to the Scalable Start-up
Finally, some failures to create advisory boards are a result of the fear and the unknown:
- They believe they must follow all advice from Advisory Board members.
- Some entrepreneurs are afraid of how the Advisory Board will impact their roles/careers.
- Finally, some entrepreneurs recognize they don’t understand the operations of Advisory Boards and fear the impact on their companies will be negative.
11 Suggestions for Creating a Highly Efficient Board of Advisors
Seasoned entrepreneurs recognize from their experience the value of advisory boards. Taking the time to gain a comprehensive understanding of advisory boards can result in significant benefits to the scalable start-up.
