What I learned from creating an advisory board for my business
Setting up an advisory board is one of the best decisions I’ve made for my business. But it takes effort, planning and a willingness to be challenged. That said, the benefits are well worth it.
According to a BDC study, 86% of entrepreneurs who had an advisory board said it significantly impacted their business. It can boost sales, provide strategic insights and help you plan for the future.
I created an advisory board for True North Accounting because I needed a space to discuss business strategy on a deeper level. It was about bringing people into my inner circle — people who could provide truly valuable, outside-the-box advice. While it took some upfront work, the impact has been transformational.
Advisory board vs. board of directors: what’s the difference?
A board of directors makes legally binding decisions that impact the corporation and management. An advisory board, on the other hand, exists to provide guidance, but its recommendations are not legally binding.
Advisory board members don’t need to be directors or shareholders; their involvement carries less risk. Ideally, you want a balance of external and internal voices to keep discussions high-level and strategic rather than getting caught up in day-to-day operations.
How to choose advisory board members
Selecting the right people is crucial. Your advisors should be people you trust, believe in your business and bring diverse perspectives. Here are a few key considerations:
- Diversity matters – Different backgrounds, cultures, experiences and viewpoints lead to better decision-making.
- Relevant experience – Seek advisors who have built businesses, scaled companies or navigated challenges similar to yours.
- Complementary skills – Look for expertise that fills gaps in your knowledge, whether in governance, finance, marketing or operations.
- External perspectives – Too many internal members can keep discussions in the weeds. Balance is key.
- Network value – A well-connected advisor can introduce you to people and opportunities you wouldn’t have access to otherwise.
Compensating your advisory board
Your advisors shouldn’t be in it for the money, but it’s important to recognize their time and contributions. A common approach is a stipend — typically around $1,000 per day. Ultimately, their advice should pay for itself many times over.
Structuring your meetings for maximum value
A well-run advisory board meeting requires preparation. Here’s how to ensure your time together is productive:
- Set a clear agenda – Send materials at least a week in advance so members can come prepared.
- Focus on the big picture – Avoid getting lost in operational details. Keep discussions strategic.
- Ask the right questions – What’s the core business problem? What insights do you need from your advisors?
- Keep discussions high-level – Your advisors don’t need to know every detail of your marketing strategy or HR policies. They’re there to help with the broader vision.
- Follow up with action items – Send a summary with key takeaways and next steps after the meeting.
The role of the chair
The chair — often the business owner — sets the agenda and keeps the meeting on track. However, if someone with governance experience can take on this role, the owner can engage in discussions fully. A strong chair ensures:
- The meeting stays focused.
- Key decisions and next steps are captured.
- Follow-ups happen between meetings.
Advisory board time commitment
There’s no one-size-fits-all approach. We found quarterly four-hour meetings worked well, but some businesses prefer monthly check-ins. The key is finding a cadence that keeps advisors engaged without overwhelming them.
Running a successful advisory board meeting
- Maintain consistency – Either have everyone in person or everyone remote. A hybrid approach often leads to disengagement.
- Limit your agenda – Less is more. Deep discussions take time, and 20 minutes per topic isn’t enough.
- Ensure preparation – Advisors should review materials in advance so the meeting can focus on discussion, not catching people up.
- Avoid excessive detail – Your advisors don’t need to know the nitty-gritty of your processes. They provide strategic guidance, not operational advice.
- Frame discussions at a high level – They want to help you navigate macro trends, industry shifts and strategic decisions.
Taking and distributing meeting notes
Documenting discussions can be challenging. Taking my own notes made it harder to participate in discussions. Here’s what worked better:
- Assign a notetaker – Whether it’s a staff member or an assistant, having someone else take notes ensures everything is captured.
- Record and transcribe – This can help capture insights accurately.
- Send a quick follow-up – Immediately after the meeting, send a thank-you email with key action items.
- Compile and distribute notes within a week – Waiting too long means details get lost, and follow-ups become harder.
What I learned from my advisory board
Creating an advisory board gave me the space to think bigger. It pulled me out of the daily grind and into high-level problem-solving. Some of the biggest takeaways were:
- The right advisors push you – Expect to be challenged. At first, I struggled with criticism, but over time, I realized it was exactly what I needed.
- Strategic thinking is everything – My board helped me move beyond short-term issues and focus on long-term growth.
- Good advice pays off – The insights I gained helped us scale and manage our business more effectively.
A final tip: Be open to feedback, even when it’s tough to hear. Your advisory board exists to challenge and refine your ideas. Lean into that, and your business will be better for it.
Looking for more insights? Check out other topics in our Strategic Advisory series.