Not all boards are created equal—and neither are their reporting needs.
In the fast-moving world of ecommerce startups, founders often confuse advisory boards with governance boards. While both are valuable, they serve different purposes and require different approaches to communication and reporting.
Understanding how to report effectively to each type of board is critical to getting the most value from your stakeholders, aligning your strategy, and building governance maturity.
In this article, we break down the fundamental differences between advisory and governance board reporting, how ecommerce boards evolve over time, and best practices for reporting in each context.
Advisory Boards vs. Governance Boards: The Basics
What Is an Advisory Board?
An advisory board is a group of experts that provides informal, non-binding advice to a founder or executive team. These boards typically:
-
Are not legally liable
-
Do not have voting rights
-
Serve as mentors, connectors, or sounding boards
-
Focus on strategic input, not oversight
What Is a Governance Board?
A governance board (often called a board of directors) has fiduciary responsibility for the company. These boards:
-
Have legal duties (care, loyalty, diligence)
-
Can hire/fire the CEO
-
Approve budgets, capital raises, and strategic decisions
-
Are accountable to shareholders or investors
Key Differences in Reporting Purpose
Advisory Board Reporting: Inform, Inspire, Engage
With advisory boards, the goal is to:
-
Share key challenges and opportunities
-
Seek guidance on big bets
-
Leverage expertise for innovation
Reports should be lighter, more conversational, and problem-focused.
Governance Board Reporting: Govern, Evaluate, Decide
With governance boards, the goal is to:
-
Provide full transparency on company performance
-
Meet compliance and legal standards
-
Enable informed oversight
Reports are more formal, structured, and tied to fiduciary duty.
Content Differences in Board Reporting
Advisory Board Packs
-
5–10 slides max
-
Focus on strategy, product, marketing, or expansion plans
-
Pose open questions (e.g., “How would you approach…?”)
-
Share key learnings, experiments, or roadblocks
Governance Board Packs
-
20–30 pages/slides
-
Cover financials, legal, HR, operations, and risks
-
Include performance dashboards and trend data
-
Require detailed executive commentary
Tone and Style of Communication
Advisory Board Tone
-
Candid and exploratory
-
Founder-led discussion
-
Interactive and feedback-rich
Governance Board Tone
-
Formal and documented
-
Structured updates followed by Q&A
-
Includes pre-reads and decision points
Cadence and Distribution
Advisory Boards
-
Meet monthly or quarterly, based on need
-
Materials may be shared 24–48 hours in advance
-
Some advisory ecommerce boards function more like mentors than formal panels
Governance Boards
-
Meet quarterly or more often if needed
-
Reports must be distributed 3–5 business days in advance
-
Late or incomplete reports affect board confidence and compliance
When Startups Make the Shift
Most ecommerce startups begin with advisory boards and move to governance boards after raising external capital or incorporating formal governance structures.
The reporting must evolve accordingly:
-
From strategic brainstorming → to accountability reporting
-
From casual updates → to formal documentation
-
From founder-centric framing → to investor-oriented framing
How to Avoid Common Pitfalls
Mistake 1: Using the Same Report for Both
Avoid reusing advisory updates as governance packs. Governance boards require detail and accuracy.
Mistake 2: Underpreparing for Governance Meetings
Startups sometimes treat governance meetings as updates. They're not—they're decision forums. Ecommerce boards need reporting that drives strategic clarity and accountability.
Mistake 3: Not Respecting the Different Roles
Don’t ask your advisory board for governance-level decisions, or assume your directors will be informal mentors. Respect each group’s role and reporting needs.
Tools to Help Streamline Reporting
-
Notion or Google Docs for advisory reports
-
Google Slides or Pitch for visual storytelling
-
ChartMogul, Triple Whale, or Looker for ecommerce dashboards
-
Use ecommerce boards templates to get reporting right for both board types
Conclusion
Your reporting is a reflection of your leadership—and your understanding of governance maturity.
Whether you're engaging mentors on an advisory board or reporting to directors with fiduciary duties, tailoring your approach to each board type will help you get better feedback, build trust, and drive results.
As your ecommerce business scales, so must your reporting.
Explore best-in-class templates, reporting guides, and ecommerce-specific tools at ecommerce boards.
Read more in our Guide to Board Reporting.
FAQs
1. What’s the main difference in reporting between advisory and governance boards?
Advisory board reporting is informal, strategic, and designed to spark discussion. Governance board reporting is formal, structured, and tied to fiduciary responsibilities. Ecommerce boards at different stages require different levels of detail and accountability.
2. Can I use the same board members for both advisory and governance roles?
Yes, but be clear about their role in each context. Some advisors later become directors, but they must understand the shift in legal responsibility and reporting expectations.
3. How detailed should advisory board reports be?
Keep them concise and insight-driven—about 5–10 slides or a short doc. Focus on decisions, challenges, and where you want feedback. Advisory ecommerce boards don’t need deep financials unless it’s part of the topic.
4. How do I transition from advisory to governance reporting?
Start by formalizing your board structure, then:
-
Add structured templates
-
Expand coverage (e.g., finance, legal)
-
Include decision points
-
Build a reporting rhythm (quarterly packs) Use tools from ecommerce boards to help.
5. What are signs my governance board reporting isn’t working?
If meetings go off-track, decisions are delayed, or your board doesn’t engage with pre-reads, you may need to improve clarity, timing, or content depth. Ecommerce boards want reporting that’s strategic, not just operational.
