What do you need to know about startup advisors before you launch and to get to the next level?
Startup advisors can make a huge difference in your venture. Though there can be a substantial difference in the outcome or bringing them in based on a variety of factors.
Here’s what to know and how to get the most out of this opportunity.
The Value of Startup Advisors
The right startup advisors can pack in a lot of value. You’re going to need them.
This is a tremendous opportunity to leverage expertise as you get started and grow your company. There is a whole lot you’ll need to learn and master as you begin and scale-up.
You may be the best talent in your industry. You may have two co-founders who really know their domains. Yet, there are many roles to take care of. Advisors can bring incredible experience in a much more efficient way than just hiring.
Startup advisors can add a lot of credibilities when it comes to winning key customers, getting into powerful distribution channels and fundraising.
They can round out the gaps in your founding team, and make it much more attractive for investors to get involved. According to Medium’s most popular startup column, those with advisors raise 7x more money and enjoy 3.5x more user growth.
There Are Many Kinds Of Startup Advisors
There are many different ways startup advisors can help. Some will be more active. Some will be on your pitch deck and website more to add credibility and trust. For a winning deck, take a look at the pitch deck template created by Silicon Valley legend, Peter Thiel (see it here) where the most critical slides are highlighted. Moreover, I also provided a commentary on a pitch deck from an Uber competitor that has raised over $400M (see it here).
Leadership and executive coaches can really help you grow as a leader. If you’re going from zero to 100 to 1,000 employees and managing hundreds of millions of dollars you’ll have to grow fast.
They can also help give you the 30,000-foot view of growing your business, and their experience and insights of what really works and how to champion common challenges from what they see in the whole market.
Fundraising consultants can help you with the right strategy, materials, and connections to raise funds well from the best investors.
On the other hand, a good M&A advisor can help prepare you for and navigate the process of mergers and acquisitions. They can help you grow by acquiring other companies, and strategically position your business to be acquired, as well and negotiating and getting through the due diligence process.
How Startup Advisors Get Paid
Quality startup advisors can be extremely valuable. Their time is very valuable. They have to be very careful about who they tie their names to.
You may find some informal mentors who are willing to donate some time to help you. Though most formal advisors will be compensated in some way.
Depending on their exact role and if they will be involved on a regular basis helping with specific tasks, this may be some form of a paycheck. Others will take specific set fees for specific tasks, like fundraising and M&A transactions.
See How I Can Help You With Your Fundraising Efforts
- Fundraising Process : get guidance from A to Z.
- Materials : our team creates epic pitch decks and financial models
- Investor Access : connect with the right investors for your business and close them