Subject – Advisors

Background

It is common practice for startups to add advisors. Because the startups typically have small number of employees and some desirable skills and experience are not provided by the employees then advisors who can provide critical knowledge and experience is very helpful.

Problem

However, many startup CEOs are inexperience and do not know how to select the proper advisors to their company. One common mistake is selecting advisors who are in remote location that are less effective than local advisors who can meet face to face with the principals of the company to engage in business discussions.

Second common mistake is selecting advisors who are famous and accomplished but do not have the time or interest to provide significant business assistance. Some first time entrepreneurs pursue this kind of advisor thinking that the advisor’s name recognition would be helpful in attracting funding.

Solution

Select local advisors who can accommodate periodic face-to-fact meetings explore helping the company on a specific issue. The advisor should be chosen who has some unique skills, knowledge or connections that are helpful for the company’s growth.