A well-established board of advisors can provide a great deal of value to a company, especially when members are known, respected experts in their field. A properly-formed advisory board can enhance the credibility of a company and can attract investors, potential partners and business development opportunities. Advisory boards are not as liable to the same legal obligation or risk as regular board members. Their opinions and advice are more flexible.
Outside perspective
The knowledge and expertise of the members is the primary benefit that advisory boards can bring to the table. Members have access to information not available to leadership that can help them spot problems or identify blind spots. They also have more freedom to come up with creative ideas and solutions as they aren’t bound by the daily operations of the business or legally responsible for it.
Professional Credentials
For advisors themselves, being an advisor provides a good way to enhance their resumes with work knowledge that they can leverage in seeking new job opportunities. Additionally, many advisors view their role as an opportunity to increase their visibility and status as a “thought leader,” which can be beneficial when it comes to networking and landing new partnership or job opportunities in the future. While it’s not a necessity to pay members of advisory boards by stipends or equity can be a great way to provide motivation for them to commit their time and effort to your business.
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