Quantum Ventures Studio

There are two basic types of boards.

Advisors typically planned compensated but sometimes compensated.

Directors or Governors are typically compensated, if they are not investors or employees of the company.

A board of advisors or an advisory committee is in most parts of the world, a group of people who help you think out loud about what you should do.

You can create a board of advisors any time. Organize a group of people and get them together in person, or in a call on a regular schedule.

You might have one or more advisory boards.

For example, you might have a;

Technology committee;

Gain committee;

A Medical committee, if your product or service touches all three.

Advisors usually don't get paid or get equity. A board of directors or governors is different than a committee of helpful voices.

Directors or Governors in a committee file their names with the government and agree that they are legally responsible for the conduct of the company.

The chairman of the board can hire and fire the CEO, which is why some founders' CEOs make themselves the chairman, which can be a sign of founderitis.

The Board of Directors extends the reach of the executive team. They can open doors and make introductions.

A Board of Directors would be formally organized once your company has evidence of viability, such as a purchase order from a paying customer somewhere in the world.

You should compensate not executive, not investors who sit on the board. If a board member demands cash payments from a startup, they are likely not the right person to advise your company.

That being said, if you require anyone to travel more than an hour or two to a meeting, you should cover their costs, travel hotels, if necessary, food, etc. But keep the costs down by choosing clean and safe hotels and affordable restaurants.