The Top 20 Tips for Establishing an Advisory Board of Mentors for Your Business
- Barry Money
- 3 days ago
- 5 min read
Do Yourself and Your Business a Favour: Establish an Advisory Board of Mentors
Running a business is no small feat, and as you grow, you’ll face new challenges. That’s where an advisory board comes in. Having a group of experienced mentors by your side can help guide you through tough decisions, refine your strategies, and offer fresh perspectives. But how do you establish the right advisory board for your business in Australia? Let’s break it down.
1. Define Your Objectives
First things first, get clear on what you want from your advisory board. Are you looking for guidance on financial decisions, marketing strategies, or perhaps legal matters? Knowing your goals will help you select the right people with the expertise you need.
2. Identify Your Advisory Board Members
An advisory board is all about expertise. Look for individuals who bring something to the table—whether it’s finance, marketing, operations, or law. You want people who can challenge your thinking, offer new ideas, and provide valuable insight that you might not have considered.
3. Legal Structure
Unlike a formal board of directors, an advisory board doesn’t have the same legal obligations, but that doesn’t mean you shouldn’t take the necessary steps to structure it properly. You’ll need to define their roles, responsibilities, and any compensation arrangements. It’s always best to consult a legal professional to ensure your board aligns with Australian business regulations.
4. Draft Documentation
Create formal documentation that outlines the purpose of the advisory board, what each member will contribute, and the frequency of meetings. Having a solid advisory board charter or agreement in place will keep things running smoothly and ensure everyone knows what’s expected of them.
5. Recruitment Process
Now it’s time to bring your advisory board to life. You can use your network, industry connections, or professional recruitment services to find the right candidates. When recruiting, focus on diversity—different backgrounds and expertise will lead to more well-rounded advice and ideas.
6. Meetings and Communication
Set a clear schedule for meetings—whether they’re monthly, quarterly, or on an as-needed basis. Regular communication is essential for keeping everyone on the same page. Virtual meetings are a great option if your board members are located in different areas.
7. Compensation and Expenses
It’s essential to discuss how advisory board members will be compensated. Whether it's a retainer, a per-meeting fee, or reimbursement for expenses, make sure everything is outlined in the advisory board agreement.
8. Review and Evaluate
Once your advisory board is in place, it’s important to regularly assess its effectiveness. Are they providing the guidance you need? Are their suggestions making a real impact on your business? Regular reviews will ensure the board remains valuable and aligned with your goals.
9. Define Terms for Termination or Renewal
Your advisory board members won’t be in place forever. Set clear terms for how and when they can exit or renew their role. A succession plan can ensure a smooth transition if you decide to bring in new members down the track.
10. Seek Legal Advice
Given your background in business law, you know that compliance is key. Consult with a legal professional to ensure your advisory board is structured according to Australian business laws. This will save you headaches in the long run.
11. Confidentiality Agreements
Your advisory board members will have access to sensitive information about your business, so it's a good idea to have them sign confidentiality agreements. This helps protect your trade secrets, business strategies, and any other proprietary information.
12. Insurance
While advisory boards generally have less liability than boards of directors, it’s worth considering liability insurance for your members. This offers extra protection for both the individuals and the business, just in case anything goes wrong.
13. Focus on Diversity of Expertise
When assembling your board, try to bring together people with diverse skill sets. A mix of expertise—financial, operational, marketing, and legal—ensures a well-rounded perspective, allowing you to tackle any business challenge that comes your way.
14. Succession Planning
People come and go. Having a plan for replacing board members ensures continuity. You want to maintain the momentum of your advisory board without missing a beat, so be prepared for when members decide to step down or retire.
15. Transparent Communication with Stakeholders
Your employees, investors, and other stakeholders need to understand the role and value of your advisory board. Transparency in how the board functions will set expectations and ensure everyone is on the same page.
16. Compliance with Corporate Governance
Even though advisory boards have fewer legal obligations than boards of directors, it’s still important to follow corporate governance best practices. Keep an eye on industry standards to ensure your advisory board is operating properly.
17. Ongoing Training and Development
Your advisory board’s role is constantly evolving, so it’s important to provide opportunities for them to keep learning. Offering ongoing training on the latest trends, industry changes, and regulations will ensure they’re always adding value.
18. Regular Performance Evaluation
You wouldn’t let your business operations go unchecked, so don’t let your advisory board fly under the radar. Regularly assess their performance and contribution to your business to ensure they’re still providing the insights and guidance you need.
19. Networking Opportunities
One of the major perks of an advisory board is their network. Encourage your board members to share their contacts and provide networking opportunities that can open doors for your business. The stronger the connections, the more valuable their advice will become.
20. Adaptability
Finally, be open to changing the structure of your advisory board as your business grows. As your business evolves, so will your needs. A flexible advisory board can help you navigate new challenges and take advantage of fresh opportunities.
Building a successful advisory board is not just about gathering a group of well-established professionals—it's about creating a dynamic team of trusted mentors who can help you navigate the ups and downs of business. Keep these steps in mind and tailor them to your business needs, and you'll be on your way to ensuring your advisory board is a key asset in your business growth.
If you’re ready to take the next step and set up your own advisory board, it’s time to start reaching out to those mentors who can help shape your future success. Let’s get to work!
Bio - Barry Money, Founder - Bane Enterprises
For the first ten years of Barry’s career, he consulted in global franchise standards and led significant transformation and innovation projects.
Barry has diverse corporate experience across multiple disciplines including sales, marketing, customer service, product management, export, quality assurance, engineering, IT and supply chain with full accountability for P&L
At the end of Barry’s corporate career, where he earned the nickname “Goliath Slayer,” Barry transitioned to the C-Suite. Barry Money is a graduate of the Australian Institute of Company Directors and a C-Suite professional, with an MBA in entrepreneurship.
Barry has held director, board member, CEO and and leadership positions in start-ups, NFPs, Founder-operated entities, industry peak bodies and commercial organisations.
He held a leadership role at Australia’s largest franchise group, where he was instrumental in driving disruption and growth.
Barry has worked in franchised industries, franchise consulting companies and some of the largest franchised brands globally.
After many years living and working all around the world, he is fluent in Japanese, French, German and conversant with several other languages.
A dynamic, results-driven leader who prides himself on lateral, entrepreneurial thinking and creativity, Barry is renowned for developing and fostering strong teams and a collegiate spirit.
Barry Money now heads up Australia’s ethical, efficient, effective, end-to-end choice for franchising solutions,
Bane Enterprises.
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