EP 011: What is an Advisory Board and How Best to Use One – A Discussion with Two Entrepreneurs

Episode Transcription

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  (9:27) As an interesting aside, both Jarrod and Tom work with their wives in their companies. They share their secrets to successfully integrating family and work and  knowing when to separate the two.

  (15:24) What is the difference between an Advisory Board and a Board of Directors? An Advisory Board provides advice or insight but has no governing power or control and no fiduciary responsibility for shareholders or owners. Some companies have both an Advisory Board and a Board of Directors. Jarrod talks about how he decided to have an Advisory Board rather than a Board of Directors.

  (19:03) Tom shares how he inherited an Advisory Board but later decided he needed to have his own.

  (22:51) How do you best use your Advisory Board? Jarrod shares his three-problems method.

  (30:33) Tom talks about the specific talents he was looking for when searching for members for his Advisory Board.

  (33:00) What should the board composition look like? Jarrod shares his interesting perspective about it: “Never put a lawyer or an accountant on your advisory Board.”

  (36:10) How do you ask people to be on your Advisory Board? Tom shares his experience when asking people to be part of his Advisory Board, which is usually met with curiosity and gratefulness.

  (41:25) Jarrod shares his perspective on Term Limits (since an Advisory Board shouldn’t be thought of as a permanent commitment).

  (47:01) The entrepreneurial life can be a little lonely. Advisory Boards provide both positive and negative feedback, which is greatly needed for entrepreneurs to keep on learning.

  (52:23) What about entrepreneurs that dislike the idea of having an Advisory Board? Where should they go for guidance? If an entrepreneur does not like the vulnerability implied in having an Advisory Board, they could network; Tom explains this idea.