Building the Entrepreneurial Advisory Board – Friends and Advisors

"I’ve got (fill in the name of the high-profile business person) on my advisory board," said the emerging entrepreneur to the group of angel investors. "When was the last time you saw him?" asked the angel at the table in the rear of the room. The response? Blank stare.

For the entrepreneur looking to grow a business through equity financing or the business owner simply looking to limit the stupid mistakes caused solely by inexperience, an advisory board may be just the answer, if it’s built right.

I have had four businesses, with advisory boards of varying size and activity levels and value to the company. Like all entrepreneurs, I did some things right, some things wrong, and cultivated a lot of experience. Being in the executive search field – my current company, Talent Management Group, is a recruiter – I also advise my growth company clients on strategy and recruiting for their board.

by Greg Moran
Talent Management Group

Full Story: http://www.entreworld.org/Content/EntreByline.cfm?ColumnID=699

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Friends and Advisors

In 1995, when I suspected the time had come to sell my company, I turned first to six individuals with whom I had consulted for decades – on personal as well as professional matters.

I asked what they thought of the four options I was considering for Helzberg Diamonds, the business I had taken over from my father in 1962 (and which my grandfather had founded in 1915.) I could take it public, sell out to a venture capitalist, merge with a national retail chain, or accept an intriguing offer from legendary investor Warren Buffett.

It took this group – which we call the "forum" and of which I am a member – all of a few seconds to rule out the first two options. Because we know each other personally as well as professionally, they understood that I couldn’t sell to a buyer who would flip the company, leaving long-term employees without jobs. Just as instinctively, they knew, as did I, that the Buffett offer was the way to go.

In a nutshell, this scenario illustrates the value of advisory relationships for entrepreneurs. Advisors provide a knowledgeable third-party perspective that can’t be overestimated. In this article, I will discuss the advisors who have played a part in my entrepreneurial life and suggest ways in which other entrepreneurs can benefit.

by Barnett Helzberg, Jr.

Full Story: http://www.entreworld.org/Content/EntreByline.cfm?ColumnID=698

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