Startup Advisors (and When You Actually Need Them) 🤝

Hey there! 👋 Dani here

Today's newsletter dives into a critical topic for founders: how to build your advisor network the right way. 🤝 We've seen hundreds of founders navigate this, and trust me—the right advisors can be game-changing for your startup. But choosing the wrong ones? That can waste precious time and equity.

Start with Your Gaps

The most successful founder-advisor relationships start with brutal honesty. Where do you actually need help? Maybe you’re a technical founder who needs GTM expertise, or you’re entering an industry where insider knowledge is crucial. Map out your weaknesses before you start looking for advisors—this will help you avoid collecting impressive names that don’t actually move your business forward.

Know What Type of Advisor You Need

There are three main types of advisors, and mixing these up is where I see most founders stumble:

• Tactical Advisors: These are your hands-on helpers. They’re great for specific challenges like launching a new product or setting up your sales process. They typically commit to regular check-ins and specific deliverables.

• Strategic Advisors: Think big picture. These advisors help you navigate market trends and make key strategic decisions. They might meet with you monthly to discuss direction and industry shifts.

• Network Advisors: These are your door openers. But here’s the catch—don’t bring someone on as a “general advisor” hoping they’ll make introductions. Be explicit if that’s what you’re looking for.

While advisors can be great (and typically don’t require cash upfront), they’re not a substitute for dedicated team members. If what you really need is someone putting in consistent hours on an entry-level function or a full-time role, an advisor probably isn’t the right fit. In these cases, consider outsourcing the function or bringing on a fractional employee instead. The key is matching the role to the actual time commitment your business needs.

Set Clear Expectations from Day One

Here’s something I learned the hard way: unclear expectations kill advisor relationships before they start. Document everything:

• How often will you meet?

• What’s the time commitment?

• How should communication flow?

• What specific goals are you working toward?

Make the Deal Fair

Most ongoing advisor roles receive 0.1–1% equity, but the amount varies based on stage, commitment, and value add. Yes, many people will offer to help for free, but if you want consistent support, align incentives with equity or cash compensation.

Always include a vesting schedule and clear milestones. This protects both you and your advisor and ensures everyone stays motivated.

If you found this helpful, share it with a friend!

Until next time,

Dani