Do You Really Need an Advisory Board? A Straight-Talk Guide for NZ Businesses

Every Kiwi business hits a point where “just figuring it out as we go” doesn’t cut it anymore. Growth creates complexity. Decisions get bigger. Risks get sharper. That’s when the idea of an advisory board pops up. But do you need one? What do they actually do—and just as importantly, what don’t they do?

When to Get One

• Growth stage: You’re scaling fast, hiring, or looking at new markets.

• Strategic crossroads: Expansion, succession, or a big investment on the horizon.

• Isolation check: You’re the owner or founder, and decision-making feels lonely or blinkered.

• Specialist insight: You need targeted expertise (e.g. digital, ESG, capital raising) without a permanent hire.

Advisory boards are especially valuable for NZ SMEs because they add seasoned brains to the room—without the cost, compliance, or legal weight of a statutory board.

What Advisory Boards Do

• Challenge your thinking: They ask the tough questions you don’t always want to hear.

• Bring outside perspective: Sector insights, fresh ideas, and connections you’d never get alone.

• Sharpen your strategy: Helping you focus on the big levers that actually drive performance.

• Mentor and guide: Supporting owners and management teams through tricky patches.

Think of them as your business GPS. They won’t drive the car, but they’ll make sure you don’t take the wrong turn at 100km/h.

What They Don’t Do

• No governance responsibility: They don’t carry legal duties under the Companies Act.

• No binding authority: They advise—you decide.

• Not a substitute for management: They won’t run the business for you.

• Not forever: Advisory boards should evolve. The right advisors today may not be the right ones in two years.

The Role of the Advisory Chair

If the board is the GPS, the chair is the glue.

• They set the agenda and keep conversations productive.

• They make sure the owner or CEO gets value from every session.

• They help navigate difficult discussions, keeping the focus strategic—not personal.

• Crucially, they provide continuity. While individual advisors may swap in and out as your needs change, the chair often stays the course, anchoring the board and holding the long-term view of the business.

For many NZ SMEs, a strong chair is the difference between an advisory board that’s a talkfest—and one that genuinely shifts performance.

Advisory Boards vs. Statutory Boards

Here’s the key distinction in plain terms:

• A statutory board (directors’ board) is required by law for companies, especially larger or regulated ones. Directors have fiduciary duties, can be held personally liable, and are formally accountable to shareholders.

• An advisory board is entirely discretionary. It’s about adding flexibility, expertise, and challenge without the compliance burden. You can form one, change it, or disband it as your needs shift.

The Bottom Line

If your business is growing and decisions are getting weightier, an advisory board can be a game-changer. It gives you wisdom without bureaucracy, challenge without liability, and perspective without politics.

But remember: advice isn’t action. Your advisory board can light the path, but you still have to walk it. And with the right chair guiding the journey, the road ahead gets a whole lot clearer.