The journey of an entrepreneur will constantly be inundated with upheavals and new challenges. It is characteristic of this journey to be a rather lonely one. Xerxes Mullan, Global Advisor for financial advisory Avestar Capital, suggests creating a strategic board or group of advisors to help and guide emerging entrepreneurs. This group of advisors in a non-board formal capacity with industry experience and abundant professional experience should have common interests and motivations with the entrepreneur. No entrepreneur can be an expert at everything; turning to others for help is essential for success. Any problem that needs to be solved can be tackled more deftly with the right team by your side.
As an entrepreneur, you may be keen to learn through your mistakes, but often, these mistakes could be costly or even fatal to your enterprise. Having advisors around you will help to minimize or even avoid making some mistakes. Therefore, creating the right advisory board is paramount to an entrepreneur. This group of subject matter experts will enrich the company’s vision and guide the leadership team on innovation, risk management, and profitability.
Selecting these advisors is an essential aspect. You can go about choosing those advisors who are in alignment with your objectives and goals. A key way to incentivize them is to give them shares or interest or an opportunity to buy some company equity. On the other hand, some advisors could be taken on through consulting arrangements where entrepreneurs pay a consulting fee, and the advisors work with you on specific areas or projects. You could also discuss a project-based fee for these consults so that they only work with you on specific projects.
Additionally, you could analyze the skill gaps in your company and work towards understanding the strategic initiatives required. Finding the right people may not be easy. You can start by looking at your network of people you trust to see if they meet your criteria. This will ensure that the advisors are familiar with and have the required skills and experience. You can also get referrals or make cold calls if you need to reach anyone outside your network.
For example, at Avestar Capital, the Board of Directors come with a varied set of interests and from different backgrounds. They are all professionals who have run operations or businesses before joining Avestar Capital. Avestar Capital’s investor base also consists of professional investors and entrepreneurs who have previously managed companies. Leveraging this network of advisors and investors has been crucial to the firm’s strategic direction.
After identifying your potential board of advisors, make sure that you vet them carefully. Apart from being skilled in their fields, the advisors should also have the desire to help you. Good chemistry will ensure things go smoothly. Once you have created an effective advisory board, there are multiple ways in which they can help entrepreneurs. The board will be able to help with new business development, any new opportunities, or face challenges. Don’t be afraid to hire those who may contradict your opinions. Simply having yes-men on the team will not do you any good. It’s essential to listen to multiple views before making any decisions.
An entrepreneur with a fledgling enterprise stands a lot to gain from creating such a strategic board of advisors. The above-mentioned merits will bring to fruition all the blood, sweat, and tears you have invested in your business. You can reach out to advisors at Avestar Capital to learn how they can help make some strategic introductions to meet your business needs. Avestar Capital is focused on serving the needs of entrepreneurs, and as an entrepreneurial client of the firm, they can introduce you to some key experts or consultants. The firm is trying to build a network of professionals and advisers, and plugging entrepreneurs like you into this ecosystem will be highly beneficial.