Why the smartest founders know when to appoint an advisory board

Entrepreneur

14-05-2025

THE best entrepreneurs – and particularly those who enjoy early success – are by their very nature innovative, driven, and often brilliant. They have ideas that few others think of and have turned them into thriving businesses.
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But even the most brilliant entrepreneurs can't do it all, and that's when recognising when to bring in help becomes essential. For any growing business, knowing when to bring in outside expertise can be the difference between plateauing and thriving. One of the most powerful, yet underused, tools available to entrepreneurs is the advisory board. Unlike a formal board of directors, advisory boards provide expert insight without statutory responsibility – and when appointed at the right time, they can be game-changing. But what is the right time?
The reality is, there's no cookie-cutter answer. The timing will vary based on the maturity, ambition and challenges facing each business. However, there are some key indicators that suggest it might be time to consider outside perspective – when founders feel isolated in decision-making, when growth plans require skills they don't yet have, or when the stakes are rising – for example, during investment rounds, succession planning, or entry into new markets.
I often tell founders, 'If you're wondering what to do next and there's no one around to challenge your thinking, that's a sign it's time'. It's not necessarily about replacing the instincts that got you to where you are, but more about reinforcing them with experience and helping you make braver, better-informed decisions. At Livingston James, we never start with 'who' to appoint, we start with 'why'. Why does this business need advice, and what value should that advice bring? Advisory boards should be purposeful, curated groups of people who deeply understand the founder, the business, and the industry, and who can help coach, challenge, and course correct.
The best advisors don't tell you what to do, they ask the questions you haven't thought to ask. They help you see what's missing, being that critical friend who can tell you the hard truths. Nobody wants to be told their baby's ugly, but the right adviser will, and they do it because they believe in your business. That belief is crucial. Whether it's a non-executive director or a more informal advisor, the purpose – to help the business achieve its goals – remains the same. To do that, the advisor must be invested – not necessarily financially, but emotionally and intellectually. They need to feel part of the mission.
One of the most common mistakes we see is companies bringing in someone just because they've 'done it before'. But just because one adviser helped one company scale doesn't mean they're right for yours. You have to ask, how did they achieve that success, what conditions made it possible, and most importantly, do the advisers you want to bring in align with your values and vision?
Chemistry between the founder and the adviser or advisers is essential. As a founder, you must be willing to be challenged by this person. Do you trust them to have uncomfortable conversations when needed? The best advisers aren't yes people, they're thoughtful challengers who bring insight and help guide founders and businesses in the right direction, and that means being prepared to have difficult conversations.
Self-awareness is a superpower in leadership. Knowing your blind spots and seeking help to fill them is one of the smartest, most mature, and effective decisions a founder can make. I've seen founders go so far as to step aside and bring in a new CEO because they knew it was the right thing for the business. That takes courage. An effective advisory board can help clarify strategy, validate purpose, challenge assumptions, and bolster your network – each bringing a distinct perspective to help shape critical decisions.
The advice will depend on what the business wants to do. If you are fundraising, then bring in an experienced CFO or partner from a professional services firm to help you navigate the complexities. If you want to break into new markets, then find an experienced commercial operator with internationalisation experience and network in the target market. In a young business, they can help you realise when the right time is to professionalise and how to go about it. One of our clients was gearing up for international expansion. They had the ambition, but lacked experience navigating global compliance and culture. An advisory board helped them build a roadmap, identify risks, and fast-track partnerships. Within 18 months, they had entered two new markets and doubled turnover.
We must also talk about diversity. A board of people who look, sound and think like you won't help you grow. Diversity of experience, gender, age, and socio-economic background are all important in a business, but the reason why is because they bring diversity of thought. And while advisory boards are often less formal than statutory boards, that doesn't mean diversity is any less important.
That brings me neatly to a common pitfall – relying too heavily on immediate networks. It's tempting to appoint someone you know is 'available', but that doesn't mean they're right. Take the time to define what success looks like. Think about what the business needs to achieve, then find someone who aligns with that vision and brings something different to the table. Visualise where you want to be, and then bring in the expertise that will help you get there.
That, of course, can change and evolve over time. The right advisory board today may not be the right one tomorrow. Business needs change as they grow – and your board should evolve alongside that. Most effective advisory teams rotate members every three to four years, but not all at once. That staggered renewal brings fresh thinking while maintaining continuity.
Once in place, the best advisory boards create clarity and confidence in leadership – especially when the stakes are highest. They become that critical friend and trusted challenger, and sometimes a catalyst for bold moves you wouldn't have taken alone. As the necessity for businesses to navigate rising complexity grows – ESG, AI, and shifting regulation – the need for wise, trusted advice rises with it. The next generation of advisory board members will be defined not just by what they know, but how they lead. Empathy, adaptability, and curiosity will be as important as technical skills.
We are entering an era where the human qualities of advisors matter more than ever. As developments in technology accelerate, it is the people who build trust, challenge constructively, and coach with humility who will help businesses thrive. So if you're a founder wondering if now is the time to build an advisory board, ask yourself this – are you open to being challenged? Are you ready to accelerate? If the answer is yes, then the right time is probably now.