Corporate boards are important. Those who sit on them can make or break a company, depending upon how they do their jobs. But does every company need a board? What about startups?
Both Sides of the Table blogger Mark Suster posed the question this week: And Suster, a former entrepreneur who is now a venture capitalist, is in a unique position to offer insight on the subject. Most of the time, those who hire advisory boards want to present their company to investors "in a positive light," he says. Sure, the idea of guidance from seasoned business people sounds good, but generally, the entrepreneurs want to be able to drop names more than they want the guidance.
However, an advisory board can be helpful if it is set up properly and expectations are realistic about what its members will do, Suster says. He offers three tips for setting up an advisory board that can work: