An Advisory Board can have the single biggest impact on the success of your startup. Imagine 4-6 senior executives who want to help you and your team by sharing ideas, resources, connections, and think of the immediate impact this could have on your company’s growth. Whether your Advisory Board is focused on one specific challenge or opportunity such as your next round of funding, or it serves as a sounding board for overall strategy, an Advisory Board is one of the most underutilized tools in helping startups achieve the next level of success.

After speaking with hundreds of startup’s CEOs & Founders we’ve compiled the following top 3 ways in which startups are using or planning to use advisory boards to fuel growth:

• Share Insights, Analysis & Introductions for Raising a New Round of Capital
• Exit Planning for either M&A or IPO
• Assist with Strategies & Connections Focused on Strategic Partnerships

What are the current goals or challenges for your startup? An Advisory Board can be an additional way to help ensure your goals are met, or even exceeded, and will also serve as an invaluable sounding board for you. The ability to share ideas, challenges, and opportunities with executives outside of your startup is a highly effective way to get feedback from someone on the outside looking in - an important perspective that should be considered. Most startups are unaware of how simple setting up and running an Advisory Board can be. While a formal board of directors is also something startups of all sizes should consider, an advisory board can provide specific insights on a particular problem or opportunity you’re facing.

We’ve created a few questions that can be used when evaluating the potential use cases for an Advisory board.

1. What is the single greatest problem or opportunity facing your company?
2. What types of outside executives would be uniquely suited to advise my company on this topic? (CEOs in my industry? CMOs in similar industries? COOs from upstream / downstream companies?)
3. How long do I expect to need assistance on this topic? (Is this something you expect to resolve in 2-3 meetings over 1-2 months, or will it require 3-4 meetings over a year?)
4. How will you compensate your advisors? Will you pay them advisors a flat hourly rate per meeting? A set quarterly amount or a mix of cash and equity?

When it comes to compensation many cash strapped startup CEOs will begin to question their need for an advisory board, but they shouldn’t! Many executive advisors are looking for opportunities to share their insights with companies they’re passionate about for less than may often be expected. It’s not uncommon for advisor agreements, especially early on in the relationship to begin at $1,000 for 1-2 hour long conference calls as both sides work to determine the best ways to provide value and move forward. Whatever the needs of your startup, an advisory board can be one of the best sounding boards and growth tools available.

Landing board seats takes work, however they can end up being some of the most gratifying positions you ever hold.