Launching a startup is totally worth it. But it’s also filled with bumps, challenges, hurdles, and headaches.
Navigating the complexities of launching a successful startup often requires an outside perspective and seasoned expertise.
Que the startup advisors.
Startup advisors can offer the needed expertise and guidance, and really set you on a sound trajectory. But their advice is not free. And the wrong advisor will cost you with little to show.
Whether it’s a single advisor to fill an expertise gap, or forming an advisory board to really propel your startup forward, knowing where to look and who to look for is key.
This article explores the process of identifying the right advisors, setting up an advisory board, and understanding your best alternatives.
What are startup advisors?
Startup advisors are seasoned professionals who provide strategic guidance and insights. They aim to help entrepreneurs overcome obstacles, refine their strategies, and grow their businesses.
Advisors typically specialize in specific areas of a startup, such as technology, marketing, or finance. The idea behind the advisorship is that they offer the benefit of their experience without taking on a full-time role within the company.
Startup advisors are particularly valuable during critical stages of growth, helping founders make informed decisions and avoid costly mistakes.
Common types of advisors for startups
Whether you're grappling with technical challenges, financial decisions, or scaling your market presence, there's an advisor suited to help. Below are the most common types of advisors for startups.
1. Technical advisor
A startup technical advisor helps you navigate complex technical decisions, ensuring that your technology is scalable, secure, and aligned with your business goals. They’re particularly valuable for non-technical founders and tech-driven startups.
Benefits of working with this type of advisor:
Scalable architecture – Help establish a tech stack that can handle future growth and increasing user demand.
Avoid technical debt – Make strategic technical decisions that won’t require costly rework later on.
Enhanced security – Protect your platform with security best practices and up-to-date compliance standards.
Efficient product development – Streamline your development process by using the right tools and methodologies.
Access to technical networks – Leverage the advisor’s network of developers, engineers, and industry experts to enhance your team’s capabilities.
Cost-efficient solutions – Receive guidance on how to make cost-effective technical decisions without sacrificing quality.
Future-proofing – Stay ahead of industry trends and technological advancements by receiving advice on emerging technologies and strategies.
2. Marketing advisor
A marketing advisor specializes in building your startup's brand. They’ll help you scale customer acquisition efforts, and create impactful marketing strategies. Their expertise will help your product resonate with the target market and drive sustainable growth.
Benefits of working with this type of advisor
Targeted customer acquisition – Develop cost-effective methods to attract your ideal customers.
Improved ROI on marketing spend – Maximize the impact of your marketing budget by focusing on high-return strategies.
Refined brand messaging – Create a clear and compelling narrative that resonates with your target audience.
Optimized digital marketing – Implement cutting-edge tools and tactics for SEO, PPC, and social media to boost visibility.
Growth hacking strategies – Explore creative, low-cost ways to rapidly increase customer acquisition and engagement.
Data-driven decision making – Use analytics to track marketing performance and continuously improve results.
3. Financial advisor
A financial advisor helps startups with budgeting, fundraising, financial forecasting, and overall financial health. Their expertise is great for maintaining financial stability while pursuing growth.
Benefits of working with this type of advisor
Improved cash flow management – Create a solid cash flow strategy to keep your operations running smoothly.
Investor relations – Prepare polished financial reports and presentations to impress potential investors.
Risk mitigation – Identify and mitigate financial risks that could impact your startup’s future.
Efficient use of capital – Optimize your financial resources to invest in the right areas for growth.
Accurate financial forecasting – Create realistic financial models to support decision-making and growth strategies.
Tax optimization – Share knowledge on applicable tax benefits and incentives that can benefit your startup.
4. Legal advisor
A legal advisor offers essential advice on structuring your company, protecting intellectual property, drafting contracts, and navigating industry regulations. They help avoid legal missteps that could derail your startup.
Benefits of working with this type of advisor
Corporate structuring – Set up your company in a way that protects personal assets and facilitates future growth.
Protection of intellectual property – Secure patents, trademarks, and copyrights to protect your products and ideas.
Contract negotiation – Draft and negotiate contracts that protect your startup’s interests in business deals.
Regulatory compliance – Ensure your business complies with all relevant laws and industry regulations.
Risk management – Identify and avoid legal risks that could lead to costly litigation or penalties.
Investor agreements – Structure investor deals to protect your ownership and minimize legal disputes during fundraising.
Exit strategy planning – Help prepare your startup legally for acquisition or IPO by structuring key contracts and agreements correctly.
How to determine if you need an advisor
Advisors are helpful if you're navigating unfamiliar industries, facing technical decisions beyond your expertise, or preparing for major milestones such as fundraising or scaling. Determining if you need a startup advisor really depends on the expertise you lack, the challenges you face, and your current and future objectives. There is no one-size-fits-all solution here.
You must look internally at your team and be honest about your knowledge gaps. And, once you understand them you have to consider whether filling the gaps also requires boots on the ground. Remember that advisors are there to advise. Getting the work done is another matter.
Another important consideration is compensation. Advisors are typically compensated through equity (more on this later). That is a significant commitment you must be ready to make.
You might instead opt for an external agency that provides advisory services as part of a larger package. For example, if you’re focused on product development but lack the internal technical expertise, you could work with an agency like DevSquad and get product strategy, management and technical leadership as part of the high-functioning product development team. This way you gain access to expert technical advice and develop your product without giving away ownership.
What about an advisory board?
An advisory board is a formal group of trusted advisors assembled to offer diverse expertise and strategic guidance for your startup. They combine several advisors from different fields, each bringing a unique perspective. Together, these advisors form a multidisciplinary team that helps you navigate challenges across various aspects of your business.
With an advisory board you get a more comprehensive understanding of your startup's strengths and weaknesses. It’s an opportunity to leverage diverse experiences and avoid costly mistakes in multiple domains simultaneously—which can be a great option if you're on a high octane growth sprint and ready to scale on multiple fronts.
However, assembling an advisory board also comes with significant considerations, including the compound effect of compensating multiple advisors. And you still have to get the work done.
If you're thinking about going this route it’s essential to weigh the benefits against the time, effort, and equity required to manage and sustain a high-functioning board.
Pros of an advisory board:
Diverse expertise
Strategic oversight
Credibility boost
Enhanced decision-making
Access to industry networks
Cons of an advisory board:
Equity dilution
Conflicting advice
Time-consuming coordination
Increased management complexity
High expectations for results
Decision-making bottlenecks
Potential for disengagement over time
Where to find startup advisors
Finding the right startup advisor requires strategy and persistence. Below are several methods you can use to connect with potential advisors.
1. Startup networking events
Startup networking events, such as meetups, demo days, and industry-specific conferences, are excellent opportunities to connect with potential advisors. These events bring together entrepreneurs, investors, and seasoned professionals who are eager to share their knowledge and help early-stage companies succeed.
Pros:
Direct face-to-face interactions
Builds relationships quickly
Access to a pool of industry-specific experts
Gain insights into competitors and other related businesses
Cons:
Time-consuming to attend multiple events
Limited to local or regional networks
Requires strong networking skills
Tips for success:
Attend industry-specific events for relevant connections
Be prepared to pitch your startup effectively
Follow up with potential advisors after the event
Know what you are looking for in an advisor
2. Cold email
Cold emailing can be an effective way to reach out to potential advisors, especially if you’re targeting specific individuals with specialized expertise. While it requires personalization and persistence, cold emailing allows you to approach virtually anyone.
Pros:
Access to a global network of experts
Can target specific individuals
No geographic restrictions
Cons:
Low response rates without personalization
Requires persistence and follow-up
Risk of being ignored or marked as spam
Time-consuming
Tips for success:
Be direct and grab attention quickly by focusing on what you need and why the advisor should care
Provide a personal touch by tailoring your message to the individual’s background and experience to increase engagement
Make sure to offer something of interest or relevance to the advisor, such as feedback on their work or aligning with a shared goal
Send a polite follow-up a week or two later if you don’t receive a reply. Often, advisors are busy, and a follow-up can bring your email back to their attention
Do the research to know the advisor’s background and recent activities so you can mention specific projects or achievements that demonstrate you’ve done your homework
Respect the advisor’s time by getting to the point in a clear, concise email. Busy professionals are more likely to respond to well-structured, brief messages
End your email with a clear request, such as setting up a short call, to make it easy for the advisor to respond
3. Mentorship platforms
Mentorship platforms simplify the startup advisory process of finding and vetting advisors. They connect you directly with experienced professionals who can offer guidance. These platforms provide a variety of options for short-term consultations or long-term mentorship. This makes it easy to find the right fit for your startup’s needs.
Pros:
Easy to find vetted mentors
Flexible mentorship options
Access to a wide range of expertise
Cons:
Can be costly
Some platforms may not offer long-term commitments
Limited to platform-provided mentors
Tips for success:
Review mentor profiles carefully before choosing
Define clear objectives for each session
Choose a platform that aligns with your specific needs
Popular platforms:
4. Accelerators
Accelerators provide a deep-dive into intense mentorship and advising. These programs offer access to a wide network of startup advisory services with the focus of pushing startups for rapid growth. While accelerators can provide immense value, they often require equity and/or other binding limitations. It's crucial to understand the terms and make sure the accelerator’s focus aligns with your startup’s goals.
Pros:
Access to top-tier advisors and mentors
Provides funding along with mentorship
Builds valuable networks quickly
Accelerates startup growth
Cons:
Requires giving up equity (in some cases up to 9%)
Highly competitive application process
May not fit every startup’s growth model
Strict agreement terms with binding limitations
Tips for success:
Fully understand the equity and contract terms before committing
Maximize the network and resources provided by the accelerator
Choose an accelerator that aligns with your startup’s industry and needs
Be mentally and physically prepared before commiting
Top accelerators:
5. Online communities
Online communities are excellent spaces to find potential advisors who may be interested in your startup. By consistently participating in discussions, you can build trust and credibility within these communities. This in turn makes it easier to approach individuals when seeking advice or mentorship. Here’s a list of communities to check out if this option is for you.
Pros:
Access to global experts and peers
Free or low-cost way to get advice
Flexible engagement at your own pace
Cons:
Limited personal interaction compared to in-person events
Requires consistent participation to build trust
Advice may vary in quality or relevance
You’ll have to vet potential mentors and any offered advice
Tips for success:
Focus on niche communities related to your industry
Engage consistently to build credibility
Be specific about your needs when reaching out for advice
6. Partners
Business partners, such as suppliers or customers, may offer valuable expertise and serve as informal advisors. Over time, you’ll likely develop strong relationships with key partners who are knowledgeable in your industry. And, your success is to some degree related to their success.
Pros:
Established trust from previous working relationships
Deep industry expertise
Often more invested in your success
Cons:
Balancing their advisory role with existing business responsibilities
May lack formal advisory experience
Limited to those already in your network
Potential conflicts of interest could affect the advice given
Tips:
Start with small conversations and build the relationship slowly
Clearly define the role you want the partner to play
Maintain a balance between business responsibilities and advisory input
Be transparent about how their involvement benefits both sides
7. Development agencies
Certain development agencies like DevSquad provide technical advising as part of their service offerings. These agencies help guide startups through crucial product and technology decisions and offer strategic insight throughout the development process. Unlike traditional advisory boards, development agencies provide ongoing support without requiring equity. Working with an agency allows you to tap into technical expertise while focusing on product development and market fit.
Pros:
Includes both development and strategic advice
No equity required for advisory services
Ongoing support throughout the development process
Access to high-functioning and experienced teams
Extensive expertise of industry standards and new developments
Cons:
Can be expensive with up-fron costs
May focus more on development than high-level strategy (if selecting the wrong agency)
Tips for success:
Look for agencies that provide guidance on product direction and technology choices in addition to development.
Make sure a technical advisor is assigned to guide key technical decisions throughout the project.
The agency should prioritize real user testing and integrate feedback into the development process.
Choose an agency that handles both strategic advising and full product development, reducing the need for multiple external partners.
Work with agencies that have a proven track record of helping early-stage companies and understand their unique needs.
Avoid lengthy contracts
Tips for compensation and advisor agreements
Compensating advisors is typically done through equity. The typical range is between 0.5% and 2%, depending on the advisor's level of involvement and expertise. Here are some tips to help you establish your compensation agreement:
Consider 1% equity for two work days a month with no other forms of compensation as a benchmark for negotiations.
Make sure you do your research into compensation methods to determine what the right offer is.
Ensure that the terms of equity vest over time to protect your interests and keep the advisor engaged for the long term.
Optionally, consider offering a small monthly retainer or success-based compensation if equity is not an option.
Take the time to craft a clear written agreement outlining the advisor’s responsibilities, expected time commitment, and compensation terms.
The best alternative to hiring startup advisors
Hiring startup advisors can be a challenging, time-consuming process with no real guaranteed outcome. Giving up equity is also not ideal. And at the end of the day, you still have to do the work that you were advised on.
An alternative approach is to work with an agency that provides advising in combination with the services you need. For example, if you're seeking technical advice for product development, then get that advice alongside a development team ready to execute your vision.
At DevSquad you get strategic advice and product strategy from our CEO and CTO. They help you with technical decisions, architecture, development feasibility, cost, aligning to user needs, and product-market fit. Your success is our success. That is why DevSquad only takes on new products that we can provide strategy for and we only onboard a couple of new customers a month.
Are you building a SaaS company? Get expert technical advice and product strategy from our CEO and CTO alongside fully-managed product development. Learn more about the DevSquad approach to discovery.
