Choosing the right advisors to be part of your SaaS business can make a huge difference to the ultimate success or failure of your venture. A well selected advisor can bring a wealth of experience, knowledge, and connections to your company as well as saving you time and money in the process.
Here are some of the attributes you should look for when choosing an advisor/mentor to be part of your SaaS journey:
Strategic direction: Advisors can help you think through your company’s goals, mission, and strategy, and provide guidance on how to achieve them. They can also help you identify areas of your business that may need improvement and recommend changes that could help you grow.
Industry expertise: Advisors who have experience in the industry or vertical you are targeting can provide valuable insights into trends and best practices. They can also help you understand the competitive landscape and provide advice on how to stay ahead.
Network and connections: Advisors often have established networks of contacts in various industries and can help you connect with potential customers, investors, or partners.
Fundraising support: If you are looking to raise capital, advisors can provide guidance on the fundraising process and help you make connections with potential investors. The right advisors can also provide potential investors with the confidence that your business has a good leadership team in place.
Operations and management: Advisors can provide practical advice on day-to-day operations, such as hiring and managing teams, improving processes, and maximizing efficiency.
Mentorship: Advisors can serve as mentors and provide guidance, support, and encouragement as you navigate the challenges of growing a business.
It’s important to keep in mind that not all advisors are created equal, and it’s crucial to find advisors who have the relevant expertise and experience, and who align with your values and goals. A General Advisor who works less than two days a month would typically be expected to receive 1% – 2% if only paid in equity.
The amount of equity you offer your advisors will vary according to the advisor’s expertise, role in the company, and the stage of the company. Using vesting shares and other contract mechanisms can be a good way to structure an advisor’s compensation package while maintaining the flexibility to remove advisors without losing equity if it doesn’t work out. StartItNow can connect you with the right people to make your SaaS business a success, talk to us today about how we can help.