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How do advisory boards fit with mentorship?

advisory-board

Module 4 of CYBF’s FREE Mentorship Crash Course identifies the distinction between mentors and advisors and goes into the specifics of the value and function of advisors and advisory boards. Here’s a brief recap of the most important questions they address in the module with their respective responses:

What is an advisory board?

An advisory board is a body that advises the management of a corporation, organization or foundation. It does not have the authority to vote on corporate matters nor a legal fiduciary responsibility.

What’s the value of an advisory board?

  • Businesses with advisory boards have been shown to receive 12-15% higher valuation. Source: KPMG
  • Advisory boards provide credibility with prospective customers and funders
  • They provide core areas of expertise before the company is able to hire those executive roles.

What’s the difference between a mentor and advisor?

A mentor helps you understand and approach the problems in your business. You meet on a regular basis to help move the business forward. They are volunteers and go into the relationship without any expectations of what they’ll get out of it.

An advisor provides advice, introductions and investment. They have clearly defined roles and authority with a usually implied financial relationship.

So how do mentors integrate into advisory boards?

Your mentor’s purpose on the advisory board is to ensure s/he is kept in the loop with the advice you’re receiving from your advisors. They won’t be paid, a “doer” on the board nor an investor in the business.

Do you have an advisory board? If so, have you benefited differently from your mentoring relationships?

Tell us on our Facebook page or below this blog post.

***Please note that we’re changing our blog post frequency to once a week on Monday afternoons starting Feb 3rd, 2014. Thanks!***

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