When you take the leap of faith to build your own tech business, the path to success is rarely straightforward. You will inevitably face challenges that demand not just a great idea but a comprehensive strategy, an understanding of the market, and the ability to adapt to changing circumstances. This is where good advisors can make a big difference for startup founders. I can attest to the valuable support from my business advisors and a group I call my Sounding Board of Directors.
Why Are Advisors Important to Tech Founders?
Expertise in Navigating Ambiguity
Startups, by nature, are a journey through uncharted territory. Whether it is innovating a new product, discovering new markets, or knowing what to do first when you start up, it is a journey into the unknown. Advisors and coaches can guide founders through these unknowns, providing insights that only come with years of industry experience. They can help navigate complex issues ranging from product development to market entry strategies, often foreseeing potential pitfalls founders might overlook.
Network Access
One of the most immediate benefits of having seasoned advisors is access to their extensive network. These connections can be instrumental in securing funding, finding the right talent, and developing partnerships to propel you forward. An introduction from a respected advisor can open doors that might otherwise remain closed, lending your startup credibility and opportunities it would need help to achieve on its own.
Credibility and Trust
Having reputable advisors associated with a startup can boost its credibility among investors, customers, and partners. This trust is crucial, especially in the early stages when the company is working to establish itself in the market. Advisors lend their reputation to the startup, signaling to stakeholders that the venture is worth their time and investment.
Emotional Support and Mentorship
The journey of building a startup is as much a personal challenge as it is a professional one. Founders often face high levels of stress, uncertainty, and setbacks. Good advisors can provide much-needed emotional support, mentorship, and motivation during these times. They serve as sounding boards for the founders, offering encouragement and helping them maintain perspective when things get tough.
Helping Avoid Costly Mistakes
Mistakes are inevitable in the startup journey, but some can be devastating enough to derail the entire venture. Advisors can help founders avoid such pitfalls by sharing their own experiences and the lessons they've learned. This guidance can be invaluable in helping the startup conserve its resources by making informed decisions and avoiding common mistakes.
Objective Perspectives
Founders are often deeply attached to their startups, viewing them through a passionate but sometimes biased lens. Advisors can provide objective, unbiased perspectives that challenge founders to look beyond their assumptions and consider alternative strategies. This objectivity is crucial for making decisions in the company's best interest rather than those driven by emotion or attachment.
Be Intentional About the Role Each Advisor or Coach Plays
Selecting trusted experts who can bring unique perspectives can be pivotal in helping you build a high-performing business. I had a personal development coach give me some great guidance on the roles that advisors can play for me as a founder and why it is important to know (at least in your mind) what roles each of your advisors plays for you. Here are the roles we think are important for your board of advisors (some people may serve in multiple roles):
- The Listener: Someone who hears you and helps you gain clarity in your mind without giving you their recommendations.
- The Customer Voice: The advisor you trust to give you honest, fair, and objective feedback from the customer’s perspective.
- Your Promoter: That person who understands and appreciates you. They get your point of view and your ideas and will push them forward as your advocate.
- Your Connector: That well-connected person with a strong network who can and will introduce you to anyone who can help you.
- Your Supporter: Oh yes! You need this person to lean on, who lifts you emotionally and practically.
- The Magician: This advisor makes the impossible happen.
Your Inspirer: This person fuels your imagination and gives you energy with their thoughts and ideas. - The Diverse View: Someone who shares a different viewpoint and way of thinking that grows your perspective.
- The Critic: This is your devil’s advocate, who gives you honest and constructive feedback – challenging your thinking.
- The Expert: This advisor has in-depth knowledge and skills in a particular area that is important to you.
- The Navigator: This is the one who helps you stay on course, pointing out opportunities and pitfalls to avoid.
Download our Building Your Board of Advisors Worksheet below
to identify people in your network who could serve in each role as you
build, launch, grow, and scale your tech business.
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A Few Thoughts on How to Structure the Relationship With Your Advisors
Remember that identifying advisors for your startup does not require paying them or holding regular formal meetings. There doesn’t have to be any formal designation for your advisor group. Simply identifying people who can help you and asking them for that help is enough. Keep them updated on the progress of your business. Set up a collaborative Slack channel so they can collaborate with you as a group. Run ideas by them. Seek expertise on topics you need to gain knowledge about.
It is wise to have anyone with whom you discuss your business sign an NDA, but most people understand that and won’t think twice about your asking. Make sure you show your appreciation for their input. Personal notes of thanks are so rare these days and highly valued. Return support for them when you can. Make connections for them. Promote their businesses. Walk their dogs. (I’m checking to see if you’re reading the whole blog and to let you know a human wrote this.)
Conclusion
In the high-stakes world of startups, having a circle of knowledgeable, experienced, and trustworthy advisors is not a luxury—it's a necessity. Good advisors bring many benefits, from industry expertise and network access to emotional support and credibility. By surrounding yourself with the right advisors, you can significantly increase your chances of successfully navigating the challenges of tech entrepreneurship, turning your visionary ideas into thriving businesses.
