What Should a Startup Advisor Be Doing for Your Company?

As an early-stage technology startup advisor, I am often asked what exactly I can “bring to the table,” and the answer is usually me asking how much time I have to explain to them all of the different, critical, and often missing, elements the company could expect to strengthen themselves with as a result of the advisory role with me. I’m typically expected to provide a variety of services to help the startup navigate the challenges of starting and growing a new business. Some of the key responsibilities of an early-stage technology startup advisor, especially one like myself, include the following main elements:

Strategic advice: An advisor will be expected to provide guidance on key strategic decisions such as product development, market positioning, and fundraising.

• Product development: An early-stage technology startup advisor will be expected to provide guidance on the development of the startup's product or service. This may include helping the startup define the product's features and functionality, determining the target market, and identifying the most effective go-to-market strategy. The advisor may also provide feedback on the product's design and user experience, and help the startup validate its product-market fit.

• Market positioning: An early-stage technology startup advisor will be expected to provide guidance on how to position the startup's product or service in the market. This may include helping the startup define its target customer segments, identifying the most effective messaging and branding, and determining the best channels to reach potential customers.

• Fundraising: An early-stage technology startup advisor will be expected to provide guidance on fundraising, including helping the startup identify the most appropriate funding sources (e.g. angel investors, venture capitalists, crowdfunding), and preparing the startup for presentations and pitch meetings with potential investors. The advisor may also help the startup navigate the legal and regulatory aspects of fundraising, such as preparing term sheets and investment agreements.

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Industry expertise: An advisor will be expected to have a deep understanding of the industry in which the startup operates, and be able to provide insights and advice on key trends, competitive landscape, and potential partners and customers.

• Additionally, the advisor may also help the startup to think about its long-term vision and goals, and to develop a strategic plan to achieve them. This may include identifying potential acquisition targets, developing partnerships, and planning for an initial public offering (IPO) or other exit strategy.

• Key trends: An early-stage technology startup advisor will be expected to have a deep understanding of the key trends and developments in the industry in which the startup operates. This may include identifying emerging technologies, tracking changes in consumer behavior and preferences, and monitoring regulatory changes that may impact the startup's business. The advisor may also be able to provide insights on how to leverage these trends to gain a competitive advantage.

• Competitive landscape: An early-stage technology startup advisor will be expected to have a strong understanding of the competitive landscape, including the strengths and weaknesses of the startup's competitors, their business models, and their go-to-market strategies. This information can be valuable in helping the startup to identify and target new market opportunities, and to develop a competitive positioning strategy.

• Potential partners and customers: An early-stage technology startup advisor will be expected to have a wide network of contacts in the industry, including potential partners and customers. The advisor may be able to introduce the startup to key decision-makers, and to help the startup build relationships with these key players. Additionally, the advisor may also be able to provide insights on the needs and preferences of potential customers, which can be valuable in developing a go-to-market strategy.

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Mentoring: An advisor will be expected to provide guidance and mentorship to the startup's founder(s) and management team, helping them develop the skills and knowledge necessary to successfully grow the business. I’ve done late-night slack calls, 2-day whiteboard sessions, and even flown across the country to assist the founders in a critical meeting or situation.

• Providing guidance on key business topics: An early-stage technology startup advisor will likely have a wealth of experience and knowledge in areas such as product development, marketing, sales, and fundraising. The advisor can provide guidance and mentorship on these key business topics, helping the startup team to develop the skills and knowledge needed to successfully navigate these areas.

• Sharing best practices: An early-stage technology startup advisor will have likely worked with other startups in the past, and will be able to share best practices and lessons learned from these experiences. This can be valuable in helping the startup team avoid common mistakes and to implement proven strategies for success.

• Introducing the startup team to experts: An early-stage technology startup advisor will likely have a wide network of contacts in the industry, including experts in various fields such as legal, finance, marketing, and more. The advisor can introduce the startup team to these experts, and help them tap into this valuable knowledge and expertise.

• Providing objective feedback: An advisor will be able to provide an unbiased and objective feedback on the startups progress, which can help the founder and the management team to identify areas for improvement and to make better decisions.

• Acting as a sounding board: An advisor can act as a sounding board for the startup team, helping them to think through complex problems and to develop effective solutions.

• A specific example is helping the team to identify and solve a problem with the product's go-to-market strategy:

• For example, let's say the startup has developed a new mobile application for managing personal finances, but is having difficulty getting users to download and use the app. The startup team may come to the advisor with this problem, and the advisor can act as a sounding board by asking the team a series of questions to help them think through the problem more deeply.

The advisor may ask questions like:

• Who is your target audience for this app?
• What are their pain points or needs that this app is addressing?
• How are you currently marketing and promoting the app?
• Have you conducted any user research or customer feedback?

By asking these questions, the advisor can help the startup team think through the problem more deeply and get a better understanding of the root cause of the problem. Based on this understanding, the advisor can then provide guidance on how to develop effective solutions such as:

• Identifying new target audiences,
• Focusing on a specific pain point,
• Re-evaluating the marketing and promotion strategy
• Conducting user research, or gathering customer feedback
• Identifying new distribution channels

Governance: An advisor will also be expected to provide guidance on the startups governance, legal, and compliance related issues.

• Governance: An early-stage technology startup advisor can provide guidance on best practices for corporate governance, such as developing effective board structures, defining roles and responsibilities for key stakeholders, and ensuring compliance with relevant laws and regulations.

• Legal: An early-stage technology startup advisor can provide guidance on legal issues such as intellectual property, contract negotiation, and compliance with relevant laws and regulations. This can include helping the startup to protect its proprietary technology, to negotiate key agreements with partners and vendors, and to navigate complex regulations in areas such as data privacy and security.

• Compliance: An early-stage technology startup advisor can provide guidance on compliance-related issues such as data protection, anti-bribery, and anti-money laundering, and help the startup implement policies and procedures to ensure compliance with relevant laws and regulations.

• Regulatory and Licensing: An advisor can also help the startup navigate the regulatory and licensing process, and help them to secure the necessary licenses and permits to operate legally and compliantly.

All of this is advice - who actually does the work? That’s where this last part comes in, which is super important to make sure any advisor includes within their skillsets.

Execution & Networking: Advisors need to be expected to roll up their sleeves and help the startup actually execute on key initiatives, such as raising funds, building partnerships, and launching new products instead of just dumping their knowledge onto the teams with no tangible next steps. 

Advisors should also be expected to have a wide network of contacts in the industry, and to use those contacts to help the startup make key connections with potential investors, partners, and customers. As someone who has launched several companies and worked with founding teams from the inception stages to their second or third rounds of funding, the crux of what has helped propel these teams is the ability for me to execute on all the points listed here as well as make strategic intros to augment revenues or progress.

By no means are these the only things an advisor can do for an early-stage company, but chances are something that isn’t listed here can fit within one of these main categories. It’s important to see how many of the above an advisor can actually execute on when determining a compensation package.

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