Every business has a board of directors or its equivalent. Having an independent, experienced voice on the board is invaluable both to the founders, to avoid an "echo chamber" effect, and to outside investors, who look for a steady hand as an extra layer of protection for their investment.

Some companies find that an advisory board is the right solution for them. An advisory board does not have the same responsibilities as a board of directors, but its members still help to guide the company and assure outside investors that their investment is secure.

WHY HAVE AN OUTSIDER ON THE BOARD OF DIRECTORS?: An independent, experienced voice or voices on your board of directors helps immeasurably with your company's success. A frequent flaw of startup businesses is a tendency for the founders to reinforce each others' existing views. An outsider alleviates that problem. Investors also realize this, and having a qualified outsider on the board of directors provides further assurance to investors that they have made the right choice in funding a company.

In addition to these "internal" advantages of outside participation in the board, a good member of the board of directors can also bring "external" advantages, such as a deep set of contacts and industry-specific experience. Those contacts can help you find outstanding employees and partners, and can even help you find the customers you need to get your business off the ground.