3 Reasons Why Startups Need Advisory Boards
Most startups feature first-time entrepreneurs. Many of these founders come from technical or software coding backgrounds. They are perfectly suited to developing that great, awesome software product. Then it’s time to launch it…get customers…and make money. Not so easy. Those skill sets differ dramatically from the ones they bring to their company. Since capital limitations make hiring an entire team impossible, I advise clients to form an Advisory Board. Here are 3 reasons why –
Advisors add credibility to the company AND the product. An experienced executive with a known reputation in the target industry provides instant authority and trustworthiness – merely by association. Business buyers avoid risk. The presence of advisors helps to reduce that risk.
Advisors open doors to personal contacts of potential buyers. Getting those first customers takes time but an advisor who can reach the right people shortens the sales cycle. A quick path to those first customers drives more customers. And revenue.
Advisors provide business expertise lacked by the founders. From finance to sales, marketing to distribution, an advisor’s proficiency becomes a short cut to right decisions. By eliminating trial and error approaches, time to market is maximized and wasted dollars minimized.
By: Liz Sara, Founder/CEO, Best Marketing. Liz provides marketing strategy consulting services to the region’s high tech early and growth stage companies, assisting more than 90 companies during the past 20 years.