This team will be able to assist the entrepreneur in developing a professional business plan. They will also be able to provide critical information about applicable federal securities laws and can help an entrepreneur understand prohibitions on solicitations. By obtaining this information before a mistake is made, an entrepreneur will minimize potential harm to the business and potential investors.
Mentors can also be a valuable resource and an integral part of an advisory board. When choosing a mentor, entrepreneurs should look for individuals that can fill a knowledge gap. If the team is weak, the entrepreneur should seek a mentor that has prior business or managerial experience.
Entrepreneurs can find mentors locally through their own personal and business contacts. There are also a multitude of formal mentor groups, readily accessible on the internet, who offer professional mentoring in the areas of valuation, appraisals, and financial consulting.
The entrepreneur should assemble the advisory team at an early stage in the venture. Many start-up entrepreneurs are unfamiliar with the intricacies associated with contract negotiations, securities laws, accounting, and taxation.
A competent advisory board will help to navigate these procedural obstacles by ensuring that they are addressed efficiently and effectively.
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