A group of advisors can lend wisdom and objectivity to your business plans.

Two years ago, Columbus, Ohio, educational publisher Cindi Englefield sat at a conference table with six teachers and education administrators. On the table were her company’s books as well as those of competitors. The question before the group: “Tell us how our books stack up to our competitors’, and don’t be pretty about it.”

For the first time, Englefield, founder and CEO of Show What You Know Publishing, was discovering the benefits of having her own advisory board. “I have a board of directors who give me financial advice,” she says, “but they haven’t been in the classroom, teaching. I was looking for a different perspective.”

Building Your Board

Just as the name implies, an advisory board offers guidance without taking on a governing role. It provides a fresh, broad prospective for business owners who are often focused on the day-to-day details of running their companies, and it brings the knowledge and experience of its members to the table. In forming a board, here are a few points to consider:

Who Should Be on It. The answer depends on what you want to get out of your board. Englefield drew from her market—educators—to focus on product development. If you’re looking for growth strategies, consider noncompeting members of your industry or sector. Members should be similar enough to come to a consensus, yet offer a range of perspectives. One caveat: Experts recommend avoiding friends and family since they have an emotional stake in your business.

How to Find Them. Here’s where your networking skills come into play. Englefield drew on her sales staff for references. If there’s someone you’d love to have on board who you don’t know personally, introduce yourself and see how well your personalities mesh.

Formal or Informal? An advisory board can fall just about anywhere in the spectrum from “group of mentors” to a formal body. Some entrepreneurs call on a small cadre of advisors whenever they have a question. Others, like Englefield, regularly schedule formal, face-to-face meetings of the full board. Remember: If you want in-person meetings, draw from local talent.

To Pay or Not to Pay. The general consensus is to offer only a small travel stipend to defray expenses. You are not seeking paid consultants. That said, your board members should get something for their efforts: Perhaps they are company stakeholders (such as customers), or can use the group for their own professional networking. Many are also happy to “give back” to their community or industry.

What to Expect. You should know the time commitment you expect from your board and make that clear to each member. Also, each meeting should have a carefully prioritized agenda focused on one or two issues that draw from your board’s expertise.

Putting together a successful advisory board and maintaining its effectiveness takes time and energy, but it can be well worth the effort. “It took us 16 years in business before we set up our board,” Englefield says. “Now, I can’t imagine doing business without it.”