Posted by & filed under Hedge Fund Marketing.

The following post is courtesy of Diane Harrison who is principal and owner of Panegyric Marketing, a strategic marketing communications firm founded in 2002 specializing in alternative assets.

One of the most challenging hurdles a new manager faces is establishing a new business organization with the minimum amount of missteps. Whether it’s a fund management, advisory service, consulting practice, or some other format, growing from being an excellent manager of oneself into a founder of a multifaceted company is one of the hardest transitions to accomplish. Recognizing the need for talent, expertise, and most importantly, perspective outside of one’s own is the first step to realizing that an advisory board can serve as a critical component to a new company’s long-term success.

So what exactly is an advisory board, and what does it provide? According to The Advisory Board Centre’s website: an advisory board is a structured and collaborative method for organizations to engage with external advisors. 


Advisory boards can provide a sounding board for a new company’s key members.  It allows them to challenge and rationalize their strategic thinking and provides access to expertise or connections that may not be readily available within the organization’s own network. 

An advisory board is not there to override business directions or to make decisions, but rather to augment the management team’s current knowledge, critical thinking, and analysis. Having such an experienced sounding board can increase the confidence of the decision-makers who represent the company.


Establishing a diverse and experienced advisory board lends instant credibility to a fledging organization still ramping up its own hiring efforts. Not only does the company gain the resources and connections it needs to grow its own pool of talent, but the board’s presence is a strong marketing draw to prospects who want to see a dedicated effort at organizational structure.

Meeting regularly with an advisory board also creates a stronger sense of accountability for a business to develop a growth plan and progress along its path, providing updates and course corrections along the way. The board can offer constructive criticism as well as insights that will provide support through the expected growing pains every new company faces.

Additionally, because the advisory board likely has members familiar with your market segment on a range of issues, it can also be a tremendous resource for understanding your competitive stance and intelligence about where your company is positioned vis a vis the others. Most business founders can benefit from an outside perspective on critical factors that impact the firm’s standing in its market.

The graphic above gives a quick summary of how creating an advisory board can support the overall success of a company. Using its many resources throughout the lifecycle of a business is one of the most important building blocks that every new founder should consider.

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