Entrepreneurs are often told that it is a good idea to recruit an advisory board for their new business. In theory, this makes sense. In practice, however, it is very difficult to form an advisory board that is effective. My column this month is intended to provide some advice about advisors. Keep the following tips in mind when forming an advisory board for your startup:
- Recruit advisors for short-term objectives.
- Advisors can help establish credibility.
- Look for advisors in unusual places.
- A free lunch is often a better motivator than equity.
- Don’t treat advisors like employees or suppliers.
- Set term limits.
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