Here are answers to some frequently asked questions about advisors. 1. What do advisors do? 2. Should I put together a board of advisors? 3. How do I get good advice? 4. How do I apply advice? 5. How do I find advisors? 6. How can I tell if an advisor is any good? Compensation ...
While that may seem like a novel idea, the fact is that successful entrepreneurs have been doing such things for years-not because it’s “faddish” but because they usually have very limited resources at the outset. An entrepreneur certainly should seek professional advice from his/her accountant and lawyer. Yet, too many fledgling entrepreneurs either don’t seek ...
When a startup receives financing it will need to setup a Board of Directors. The Board probably existed beforehand, but was made up only of the founders. Once funding takes place, the angels or VCs will want a seat at the table. There’s no surprise there. But there’s another kind of board that’s equally important. ...
Depending on the stage of development and the type of business, there are different ways of compensating your advisory board. So let’s get practical. First, a few assumptions: you are a startup and there have been relatively few stock transactions, but the stock should have value in the future, either through an IPO or merger. ...
Some people say, ‘don’t worry about an advisory board, they’ll take up too much time and become a distraction, just focus on the essentials.’ Of course you must stay focused and concentrate on building the business. However, I’d argue that an advisory board is one of those ‘essentials’. For example, in the early days of ...
The normal advisor gets 0.1%-0.25% of a company’s post-Series A stock. Normal advisors do something important for the company and aren’t expected to do much beyond that. For example, they introduce the company to a key customer or investor. The super advisor can get as much stock as a board member: 1%-2% of a company’s ...
The best strategic investors or advisory board members are people who know something about your specific business. Experienced business executives, either people who have retired from key positions at a competing company or who work in a complementary field, can be very helpful, but they are not a guarantee that your company will succeed. There ...