guideExecutive Skills
Board & Advisory Board Setup Guide
When to form a board, who to put on it, and how to run effective board meetings. Plus: how to structure your advisory board, what advisors should get in equity, and how to make the relationship valuable.
When to Form a Board
At incorporation, most companies have just founders as directors. After a seed round, investors typically take 1 board seat. After Series A, the typical structure is 2 founders + 2 investors + 1 independent director.
Don't wait until investors require it — forming good governance habits early builds trust.
Board Meeting Best Practices
Meet quarterly at minimum. Send a board package 48+ hours in advance including:
• Key metrics dashboard (vs. last period and vs. plan)
• Financial summary (P&L, burn, runway)
• Progress on OKRs from last quarter
• Decisions needed from the board
• Risks and asks
Keep meetings to 2 hours. Don't read slides aloud — assume board members have read the package.
Building Your Advisory Board
Advisors are different from board members — they have no fiduciary duty and no voting power. They're valuable for domain expertise, introductions, and credibility.
Ideal advisor profile: Deep expertise in one specific area you need (enterprise sales, regulatory, distribution, scientific domain). Willing to make introductions. Available for 1–2 hours per month.
Advisor Equity
Advisors typically receive 0.1–0.5% equity, vesting over 1–2 years with no cliff.
Range guide:
• Early stage (pre-product): 0.25–0.5%
• Growth stage (post-revenue): 0.1–0.25%
Higher for advisors who actively open doors vs. those who just take calls.
Making Advisors Useful
The #1 mistake founders make with advisors: not asking for anything specific. Advisors respond to clear, specific asks.
Bad: 'Let me know if you have any intros.'
Good: 'Can you intro me to 3 enterprise buyers at retail companies with $50M+ revenue by end of month?'