Learning from the Right Advisors is Like Getting a Second MBA

1. Learning from the Right
ADVISORS
is Like Getting a Second MBA
Featured in The Metropreneur, May 2014
Capital Access Series #4
Tom Walker

2. Like the best catchers, successful
entrepreneurs watch and learn from
every play. There’s no better way to
do this than to build a trusted team
of advisors and then watch what
they do and listen to what they say.

3. WHAT should an entrepreneur look for in an advisor?
When we use the term advisor at TechColumbus, we
are referring to individuals who have knowledge and
experience relevant to the startup’s business.
An entrepreneur will develop multiple advisory
relationships over time. You don’t have to be friends
with all your advisors. In fact, it’s not a bad idea to
listen to the advice of some people you don’t agree
with or even like.
Regardless of their expertise, the best
advisors are people who know more than you
know.

4. WHAT should an entrepreneur look for in an advisor?
These individuals could be professors,
scientists, researchers, technical
experts, entrepreneurs or leaders in
companies that are possible strategic
partners.

5. WHAT should an entrepreneur look for in an advisor?
Often the most helpful advisors are
potential customers who have the
business problems that the startup is
trying to solve.

6. WHAT should an entrepreneur look for in an advisor?
An entrepreneur will develop multiple
advisory relationships over time. You
don’t have to be friends with all your
advisors. In fact, it’s not a bad idea to
listen to the advice of some people you
don’t agree with or even like.
Regardless of their expertise, the best
advisors are people who know more
than you know.

7. WHAT is a Board of Advisors?
A Board of Advisors is a small group of these
types of individuals, at least three but no more
than five, who the entrepreneur knows well and
trusts. These folks participate in a more
structured, defined role at the request of the
entrepreneur. Unlike a Board of Directors,
Boards of Advisors have no legal or fiduciary
responsibility.

8. WHAT is a Board of Advisors?
Advisory boards provide guidance and insight and
serve as a sounding board at the Proof of
Concept and Seed Stages of a company. They
have the time and willingness to participate with
the entrepreneur and the company on a regular
and ongoing basis.

9. HOW do I go about forming a Board of Advisors?
Entrepreneurs who learn how to seek advice before they start
structuring an advisory board get better results. The whole idea
is to supplement what you already know with skills and talents
that you don’t have.
If your background is marketing, look for technical folks. If you
are a technologist, run, don’t walk, to find marketing and finance
expertise. If your background is engineering, look for people who
know what it takes to make sales.
Have a timeline, but don’t be in a hurry to fill out your board.
Diversity is highly desirable. So is good chemistry. You will also
want to ensure that there is no conflict of interest. While there
are no hard and fast rules for setting up an advisory board, we
advise against bringing relatives or best buddies on board.
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10. HOW do I work effectively with an advisory board?
Be clear about what you need
when asking for help or advice. Be
respectful of your advisors’ time.
They are busy people, otherwise
you wouldn’t be seeking their
advice. Choose someone locally if
possible.

11. HOW do I work effectively with an advisory board?
When talking with advisors,
frame the discussion in scenarios.
Don’t expect advisors to tell you what to
do. You are the company founder. They
are the sounding board.

12. HOW do I work effectively with an advisory board?
Keep advisors informed
about key milestones via email
periodically. Meet with them as a
group every quarter. Have an agenda.
Promptly follow up the discussion with
advisory board notes.

13. Advisors are in a sense volunteers.
Many of them, especially those who
are entrepreneurs themselves,
consider advising a startup as a way
to give back. Still, entrepreneurs
should consider appropriate
compensation for the Advisory
Board’s participation. Always pay
their expenses.

14. There are so many advantages to
working with an advisory board.
Advisors can become advocates for the company
and references for the integrity and skills of the
entrepreneur. Notes from advisory board
meetings and discussions can contribute to due
diligence.
Experience with an Advisory Board helps prepare
entrepreneurs for working with a Board of
Directors when external investment does occur.

15. Entrepreneurs who want to
achieve the milestones that
attract investment capital
deliberately build business
relationships beyond their
companies with people they can trust.