Know-How Exchange : Strategy

Figure out what specific talents you're looking to acquire and if you need them to meet as a group or simply be available to you for advice (by phone). Lastly, determine the compensation you're offering - what's in it for them?

It is really important to figure out what the "board of advisors" will do. Why do you want a board of advisors? What will happen with their input?

Knowing these things will help determine who should be on the board. If there are people who's opinion the company respects you should invite them to participate on the board. You are going to have to individually invite people. A blanket invite will probably not suffice.

Jay is right about needing to offer the board some compensation. This can be a variety of things. People are busy and will not necessarily participate for free

Hi Joseph,
I've been involved as an adviser with a couple of start ups and I think there are a few key things to keep in mind. I agree with the points that the other respondents have made.
One of the key challenges you may have is keeping your advisers informed enough to actually provide meaningful advice. Consider producing an email communication every couple of weeks that covers the key developments and progress of your company - that way, when you reach out to advisers for help, they will have some context for where you are in terms of the development of the company.
Next, think about whether you plan on tapping into the advisory board as a group or as individuals and let them know what to expect in terms of frequency and nature of the communication. Physical meetings? Phone conversations? Email? It's likely they have day jobs and it may be hard to get their time when you need it unless you plan for it in advance.
Finally, I agree with the "what's in it for them?" issue that has been raised previously. It's fair and appropriate to ask what might be meaningful to your advisory team in terms of compensation. It could be as simple as a periodic lunch or networking event with the other advisers or be more extensive, like equity or the opportunity to be on the board of directors when the company reaches the appropriate size.
I think that unfortunately, the term "advisory board" has become synonymous with "give free help & advice and have no real influence". It doesn't have to be that way, but you will need to spend some time thinking about the purpose of the advisory team and how to make the experience rewarding and meaningful to the advisers. Best of luck!

Know your strengths and weaknesses in your management and fill in with advisors. Legal, ecommerce, marketing, finance, etc.

Make sure you have developed clear goals so the advisors understand why they are invited/what is expected of them. Listen to them even if you disagree.

What exactly do you want the advisors to do for you and who is slated to potentially fill the needed gaps.

What will it cost you upfront, yearly, etc.

Develop a profile for the advisors, ask for recommendations, look for them on and offline and find out what motives them (besides money)...is it the challenge and determine compensation ($500 to $3,000 per meeting) or annually ($5,000 to $25,000), give stock purchase stock, etc.