Every startup seems to have advisors. In fact, several I’ve spoken to feel they must have advisors. Despite generally being granted equity for free (advisors are usually ‘paid’ 0.25-0.5%), they’re probably one of the most under-utilised assets a company has. Don’t fall into that trap.
1. Be organised for them
Every month I try send our advisors a list of (individual) tasks to help with. Questions, recommendations or introductions (usually the latter).
2. Brand name advisors are a waste of time
You should only select advisors for gaps you have in your knowledge or network (or possibly hacking Angel List). Adding people as non-investors because of their name is a total waste of time. Trust me, nobody cares.
3. Advisors won’t help you raise money
I’ve seen companies dedicate entire slides to listing advisors (been guilty of it myself in the past). Stop! You’re just wasting valuable pitching real estate.
4. Keep them updated
Always keep your advisors on the same updates as your investors. The more they know, the more useful they can be.
5. Be ruthless
If you find that you’re not using specific advisors, cut them. Otherwise you’re just handing out equity for free.
“All my friendships stay on shuffle” -Schoolboy Q, ‘Sacrilegious’