Recently, I got a direct message on LinkedIn, inviting me to serve on some advisory boards. The DM came from Chris Beaver, co-founder of Advisory Cloud. It’s an online service helping professionals find advisory boards to join. This got me thinking more about advisory boards. I’m on the board of directors of the Manhattan Chamber of Commerce and have served on at least 1 or 2 other boards. I know many of my entrepreneur friends serve on multiple boards.

Related article: How LinkedIn Advisors Can Propel Your Small Business to New Heights

Let’s unpack what this means for you and your business or brand.

Advisory Board vs. Board of Directors

Understanding the distinction between these two types of boards is crucial for entrepreneurs considering advisory roles. Each carries different responsibilities, legal implications, and potential benefits.

• Advisory Board: A group of experts who provide non-binding strategic advice to a company’s management. Members have no fiduciary responsibilities and cannot vote on corporate matters.
• Board of Directors: A legally mandated governing body that has a fiduciary duty to the company and its shareholders. Directors vote on major decisions and can be held legally liable for their actions.

As an entrepreneur, you’re more likely to encounter opportunities for advisory board positions, which offer flexibility and less legal responsibility.

Can an Advisory Board Build Your Network?

Joining an advisory board can significantly expand your professional network, opening doors to new opportunities and collaborations. This networking aspect is often one of the most valuable benefits for entrepreneurs.

1. Access to other board members: You’ll work alongside other experienced professionals, potentially from diverse industries.
2. Connections to the company’s ecosystem: This includes employees, partners, and investors.
3. Increased visibility: Your role may lead to introductions to other companies seeking advisors.

Does it Look Good on Your Resume/LinkedIn?

Adding an advisory board position to your professional profile can enhance your credibility and showcase your expertise to a wider audience. However, it’s important to consider how each opportunity aligns with your personal brand and career goals.

• Demonstrates expertise: It shows that others value your knowledge and experience.
• Highlights leadership: Advisory roles indicate that you can provide strategic guidance.
• Broadens your experience: It shows involvement beyond your own company or industry.
• Signals trustworthiness: Companies entrust advisors with sensitive information and strategy.

However, the impact depends on the company’s reputation and the relevance of the role to your career goals.

How to Get on an Advisory Board

Securing an advisory board position requires a strategic approach. It’s about leveraging your existing network, showcasing your expertise, and actively seeking out opportunities that align with your skills and interests.

1. Leverage your network: Let contacts know you’re interested in advisory roles.
2. Showcase your expertise: Speak at events, write articles, or engage on social media.
3. Target relevant companies: Look for businesses where your experience adds clear value.
4. Reach out directly: Contact founders or CEOs of companies you’d like to advise.
5. Consider startups: Early-stage companies often seek advisors to guide their growth.
6. Join advisor networks: Platforms like Advisory Cloud connect companies with potential advisors.

Pros and Cons of Joining an Advisory Board

Like any professional decision, joining an advisory board comes with its own set of advantages and challenges. It’s important to weigh these carefully against your personal and professional goals before committing to a role.

Pros:

1. Learning opportunity: Gain insights into different business models and challenges.
2. Networking: Expand your professional connections.
3. Reputation enhancement: Boost your credibility and personal brand.
4. Potential financial benefits: Some roles offer compensation or equity.
5. Giving back: Share your knowledge to help others succeed.
6. Diversify experience: Gain exposure to new industries or business stages.

Cons:

1. Time commitment: Balancing advisory roles with your primary business can be challenging.
2. Limited impact: Your advice may not always be implemented.
3. Potential conflicts of interest: Ensure the role doesn’t clash with your other commitments.
4. Legal considerations: Even without fiduciary duty, there may be legal aspects to navigate.
5. Reputation risk: A company’s failures or controversies could reflect poorly on advisors.
6. Compensation issues: Some roles may not offer fair compensation for your time and expertise.

Conclusion

For entrepreneurs, advisory board roles can offer valuable networking opportunities, enhance your professional profile, and provide learning experiences. However, it’s essential to carefully consider the time commitment and potential risks. Choose roles that align with your expertise and career goals, and ensure you can provide genuine value to the company. When approached thoughtfully, advisory board positions can be a win-win for both entrepreneurs and the companies they advise.

Related articles:

Do You Need a Board of Directors for Your Business?(Opens in a new browser tab)

6 Steps to Creating a Vision Board for Your Small Business(Opens in a new browser tab)