One of the hardest things to manage as a founder of a startup is the amount of complexity. From brainstorming and functioning on the business model to actually implementing and expanding it, there is a lot that needs to be handled at the right moments and with the right advice, because the advice is what is going to be the deciding factor. This is where the advisors come into the picture as they hold invaluable knowledge, experience and relationships which help to grow quickly.
It doesn’t matter whether you are in contact with a startup consulting company or hiring people individually, the hiring part is of crucial importance and needs to be done right. With that being said, here are five factors that you need to keep in mind to help you find the ideal startup advisor for your business.
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Be Clear About Your Requirements
Also, you must know how to find a startup advisor because you have to ask for their expertise. Are they looking for someone who would help them with raising funds? Or perhaps a person who could provide ideas about marketing or creating a product? After noticing what one’s requirements are, one could find an expert or an advisor in that specific criterion.
Since startup advisory services tend to focus on certain areas of a business, be sure you already know what your objectives are since that will make finding someone who can help you easier. Additionally, for the advisor and the entrepreneur to have a good working relationship, both parties need to have a clearly defined scope of work.
- Make Sure They Have Experience in Specific Fields
Not everyone is able to advise on the same thing, and having knowledge of a certain industry can enable advisors to add great value straight away.
Advisors who have dealt in the same line as your startup are well versed with the issues and the potential in your business.
The introduction of an advisor who has thoroughly practised cutting across all regulations and knows customer expectations will help a fintech startup remarkably. In the same way, an advisor who has experience in taking off tech products into the market may advise during product development on the best time to introduce a product and the product to be targeted.
Also working with a startup consulting firm that has a variety of advisors is helpful. It ensures that the advice given to you is not just vague and general, but realistic and achievable because people who have successfully implemented it offer it.
- Analyze Their Relationships and Connections
An advisor’s network is probably the most valuable asset they have. An advisor with a wide network can connect the startup with sponsors, potential clients, and also strategic partners.
When looking for advisors, seek out those who already know people in the same field. Request examples of connections they have established in the past, and how they utilized such relationships to grow startups. A strong networking presence can fast-track the process of building critical connections.
- Measure Communication and Compatibility
There are technical aspects to looking for an advisor, but fundamentally an advisor does not only need to be knowledgeable but someone one can communicate quite freely and easily.
Understanding and checking the person’s mode of communication and if it fits your own is very critical.
Partnerships should be held in high esteem because the advisor and the startup are expected to work together with utmost frankness. Engage someone who comprehends what you want to achieve and gives you feedback but allows you to steer the ship.
- Clarification of Purpose and Conditions on Expectations
It is also important to agree on the advisor’s role and time input as well as remunerations before making the commitments. Most of the startup advisory services work on the principle of compensations through equity shares to ensure that the advisor has a vested interest in your success.
An agreement put down in writing defining the scope of the work, key performance indicators and what will be deliverables helps prevent misunderstanding later on. Clear terms also enhance professionalism while making ready the ground for collective success.
Conclusion
Getting an appropriate advisor who will assist you in the startup stage is a moving target that takes time and planning. Whether you hire a solo professional or a startup consulting company, dealing with the right advisor will be a unique advantage, bringing the right guidance, resources and contacts. Note that defining your needs, assessing proficiency and networks, compatibility and expectations management will be key in creating a healthy advisory relationship that brings a competitive edge on a sustainable basis to your startup.
