Once a month, our panel of mentors answer your practical business questions. Send us your questions!
Dear BAM Mentor,
I keep hearing that having an Advisory Board is good idea for a BAM company. How is an advisory board different from other kinds of boards and how should I go about setting one up?
~ Needing Advice
Dear Needing Advice,
We must first determine what type of Board you are inquiring about. Usually, an Advisory Board is used to give strategic advice on a narrow topic. A Board of Directors, on the other hand, is who the CEO is accountable to. They give advice on a broader range of issues. This position has some legal responsibilities and Board members on large companies can wield considerable power since they hire and fire the CEO. This is highly unlikely in a BAM company, however.
Let’s talk for a minute about a Board of Directors. You should have such a Board. You, as CEO, need to be accountable to someone outside the company that has direct experience in what you are doing and can likely spot a potential pitfall before you can. Otherwise, it is more likely that you will make a significant mistake – and we all do – and there will be no one to help guide you through a particularly tricky situation. Read more