An advisory board is a group of people chosen to give expert and unbiased advice to a business. Members are not typically compensated.
Advisory boards operate informally. They provide insight and guidance tailored to the specific needs of a business and serve as a sounding board for company leaders, helping validate their strategies and ideas.
One of the main benefits of an advisory board is that it provides perspective and observations about strategic gaps and opportunities, with no self-interest on the part of the members.
An effective advisory board has members with a mix of expertise and experience in areas such as law, accounting, marketing, human resources and financial management. It ideally includes one or two successful entrepreneurs from outside industries.
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