WE'VE MOVED!

We are proud to announce our NEW community destination. Engage with resident experts and fellow entrepreneurs, and learn everything you need to start your business. Check out the new home of StartupNation Community at startupnation.mn.co

Forming a board of advisors

kamolahykamolahy subscriber Posts: 27
edited July 2006 in Strategies & Tactics for Getting Efficient
Hey friends!First and foremost, I just want to announce that my business is registered and official! I know that for all you entrepreneurs out there, it`s a bit of a milestone to get that. It feels good.Anyway, I`m putting together a board of advisors. I know a number of very skilled professionals that I want to be a part of my venture. These are people who have incredible credentials and they would be more than helpful. I took the advice of our startup nation gurus and decided that by offering a tiny stake in the company I could ask for a few hours of each of these individuals` time every month. By doing so, I can be surrounded by their advice, contacts, and potential investment.My concern is, what happens if things don`t work out and I have debts for a failed business. Are they at all responsible for some of that?
· Share on Google+ Share on FacebookShare on Twitter

Comments

  • kamolahykamolahy subscriber Posts: 27
    It depends on how you legally structure their ownership.  They can be silent owners in the company.  I would seek legal advice, and there should be an agreement that is drafted that all of your investors and advisors have to sign acknoledging the risk and their responsabilities if any.
    By the way this is not legal advice and I am not lawyer : )
    Also, regarding your advisory board another motivational incentive is simply that the worth of their share in your company is only worth as much as they contribute.  So I think that is good that you establish some basic guidelines as to what there responsibilities are but making it clear that the value of their stake in your company is dependant on the success of your company which they contribute to.
     
    Good Luck.I`ve thought about that. Thanks for the "non" advice.. I was just seeking some kind of an answer. I know I need to find a lawyer. It`s just one of those things I need to do. Thanks again.
    · Share on Google+ Share on FacebookShare on Twitter
  • calvinjrcalvinjr subscriber Posts: 3
    I have a  BOA for my company and they have no ownership what so ever. They are advisors...they provide advice. True, I have befriended them and invest as much as I can into their life as they invest into mine.As we move forward, I will create a profit sharing program for them so they can atleast recieve a percentage of the profit that their advice helps create.C.     
    · Share on Google+ Share on FacebookShare on Twitter
Sign In or Register to comment.