How to Create an Advisory Board
Key Takeaways:
- Target specific skill gaps within your business to select advisors who offer objective expertise, prioritising quality over quantity and avoiding conflicts of interest with friends or family.
- Mandate a written agreement to clearly define expectations, including meeting frequency, scope of advice, and strategic limitations, ensuring alignment from the outset.
- Determine the compensation structure early—whether pro bono, fixed fees, or equity—and document these financial terms to avoid future disputes.
- Secure your business assets by utilising a professionally drafted Advisory Board Member Agreement that explicitly covers confidentiality, intellectual property rights, and termination protocols.
1. Choose your advisors wisely
Identify the skill gaps in your business. If you’re strong in product development but weak in fundraising, marketing, or governance, look for experts in those areas.
- Aim for quality over quantity — three well-chosen advisors is ideal for most SMEs.
- Avoid family and close friends who may not be objective.
2. Set expectations clearly
From the start, outline what you want advisors to do.
- How often will they meet with you?
- What areas of the business will they advise on?
- What limitations should they respect?
A written Advisory Board Member Agreement is essential here — it prevents misunderstandings and ensures everyone is aligned.
3. Decide on compensation
Advisors may:
- Work pro bono for experience and networking,
- Receive equity or stock options (common in startups), or
- Be paid a fixed fee or reimbursed expenses.
Whatever you agree on, make it clear in writing.
4. Get the most out of your board
- Prepare agendas and share documents before meetings.
- Respect their time by keeping meetings structured.
- Follow up with action plans so advice doesn’t go to waste.
5. Protect your business with the right documents
Use a professionally drafted Advisory Board Member Agreement to cover:
- Services and scope
- Term and hours
- Confidentiality and intellectual property
- Termination rights
- Fees, equity, or reimbursement arrangements
This ensures your advisory relationship stays clear, compliant, and beneficial for both sides.
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✅ Key takeaway: An Advisory Board isn’t just for corporates. SMEs and startups can benefit hugely — but only if the relationship is structured with the right people, clear expectations, and a solid agreement in place.
👉 Download our Advisory Board Member Agreement Template to start building your Advisory Board today.
Download our Advisory Board Member Guide | Startups & SMEs Australia | Roles, Structure & Best Practices
Our Advisory Board Member Agreement template is designed to give charities and not-for-profits a strong starting point.
Building an Advisory Board can give your startup or SME the strategic edge you need — but only if the relationships are clear and professional from the start.
Our Advisory Board Member Agreement template is a practical starting point.
If your business needs a tailored agreement that reflects your growth stage, investor expectations, or governance framework, Click Legal can help.
📞 Call us on +61 (0) 450 502 672
✉️ Email hello@clicklegal.com.au
👉 Contact Click Legal today to secure a customised Advisory Board Agreement that supports your growth and protects your business.
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