If you want to build your business, you will need advisors to guide you on your journey. Advisors are people that have avid experience in building companies. They can prove to be a valuable asset that can take your startup to the next level. Startups that acquire advisors are more likely to make more money and grow at a decent rate.
As a new business owner, you cannot rely only on yourself for many work and decisions. Having an expert on board helps you make wise decisions for your business and takes some burden off your shoulders.
The stat above shows how influencial advisors can be.
We have compiled tips that will help you in finding a great startup advisor for your business.
1) Make sure the advisor will have an interest in your company
Before hiring an advisor, ensure that the person can contribute to the business. If the advisor is as excited as you are about the company, you are likely to scale your business. The advisor should be involved in every decision that a corporation takes and should be wholeheartedly interested.
You can negotiate a share for your advisor's efforts. If an advisor has a stake in the company, they will strive harder to achieve good results. Treat advisors like partners, more than a colleague.
2) Look for advisors who have skills that you don't
You need things from your advisors that you cannot offer—for instance, making hard decisions, data analysis, and communication skills. Ensure that the people you are hiring are not shying away from criticizing your product or service and giving valuable and constructive feedback.
Another thing that an advisor might have that you lack is tons of connections with investors, partners, and other relevant figures. They will have the right contacts that will help in lead generation and product growth.
3) Be as open as possible
The first thing that you will need to do is roll out regular amendments to potential advisors. That will help them analyze your company's history and provide advice. Make sure that you are open to your demands and describe all the aspects you need help in.
It will also give you an idea about their expertise and relevant experience. The ideal candidate will be the one who has worked on a similar business like yours. They will have a history of starting and growing their startup.
4) Ensure they are trustworthy
Your advisor will have a good amount of access to your business. Do make sure that the person is reliable. Business plans, financial records, and other documents should be dealt with care. Ensure that your advisor has a stellar reputation and is recommended by others.
5) Check qualifications and credentials
Although the degree does not matter much, you should still make sure that the advisor has a solid academic background. A business degree or MBA from a reputable institute should be enough.
6) Dedication for the business
As you're a startup, you will need more than just one-time consulting. You can only achieve proper growth if you establish a long-term strategy with your client. Make sure the potential advisor has time in his schedule to steer your business in the right direction. The right advisor will have time and interest for your business to help you set core goals and achieve them.
Avoid the ones that want to start with cash and discuss the equity later. It shows the advisor does not have much interest. One more thing you should keep in mind is not to offer a lot of equity. For instance, some startups are so desperate to get an advisor that they agree on 5-10% of business equity. In years, you would start to realize that every percent in your business holds a significant value. To save yourself from regret, allow a maximum of 1% equity.
7) Construct an honest conversation
Think of it as your first meeting and use it to ask anything important to you. You're not only choosing a professional but a personality. It is essential the candidate is the right choice for the vacancy and fits perfectly in your business culture.
Final thoughts
An advisor's work is only to suggest. To approve it or not is still the owner's job. The advisor wouldn't always be accurate. Therefore, it is essential that the owner and advisor work alongside.