the required skill set and time to serve, such as your firm’s outside accountant, legal advisor or insurance agent. They will have a vested interest in the business, as well as a historical reference for most issues. “Make sure to avoid any conflicts of interest with active professional advisors,” says Smith. “And don’t be afraid to let your board evolve as your business does. Ensuring that historical knowledge is transferred from existing members to new members is critical, so that new ideas and concepts are constantly brought to the table.”
A typical board of advisors meeting should last no more than three hours, including time for a meal. An advisor should be prepared to devote at least one hour of preparation time for every two hours of meeting time.
In terms of compensation, a general rule of thumb is that an advisor should be compensated at a rate comparable to a chief executive officer. To determine this, figure out the hourly rate you or your company’s CEO is paid, and apply it to the number of hours spent at the meeting, plus preparation time.