Why Startups Need Advisors Who Become Their Extended Teams
- Afshin Shahalizad
- Jul 22, 2025
- 6 min read
“I don’t need advisors. I need employees.”
I’ve heard this sentiment countless times from numerous early-stage tech startup founders. In the scrappy startup phase, every dollar counts, and hiring team members who can execute seems more valuable than bringing in advisors who, at best, offer guidance and, at worst, seek equity without real contributions.
However, while dedicated employees are essential for smooth operations, most early-stage startups lack the financial resources to hire multiple full-time staff. This creates a classic “chicken and egg” situation:
No financial resources, no dedicated team to manage operations effectively.
No dedicated team, no sustainable operations and no financial gain.
Even with adequate capital, many startup teams consist of technical experts without professional business, finance, or project management backgrounds. First-time founders and their teams are often technical people transitioning from academia without prior business experience.
A startup’s success can’t be guaranteed only by developing a fancy prototype or MVP to impress investors!
I’ve observed that tech teams in early-stage startups often focus so intently on product development that they overlook business aspects, leading to rapid cash depletion and eventual failure.
Even if you possess all the right technical and business acumen to run a company, you don’t have more than 24 hours a day as a founder. Without team members and advisors who bring their expertise to the table, you probably won’t be able to handle much by yourself.
Let me tell you a quick story before we proceed …
I’ve had multiple conversations with fellow startups during the past few years, including one with an EdTech company founder and entrepreneur who already had broad technical and business experience. “I’ve become a startup advisor myself,” he said, smiling bitterly.
As he continued, I learned he had attended multiple startup training programs and cohorts hosted by tech incubators and accelerators. However, after years of hard work and with a product nearly ready for broad adoption, the absence of a marketing and sales team severely hurt his operations. He lacked both the financial resources to hire staff and the time to market his product himself.
Do you see the “chicken and egg” situation?
This is just one example of many similar stories we hear from tech startup founders everywhere.
Here’s the truth:
The right advisors can do things no employee ever will.
They can open doors to investors, prevent costly mistakes, fast-track growth, and give you an unfair advantage that money alone can’t buy. In fact, some of the most successful startups (e.g., Airbnb, Stripe, and Slack) had powerful advisors who played a key role in their rise.
So, let’s break this down. Who exactly are startup advisors? Why do you need them? And how do you find the ones who actually add value instead of just collecting equity?
What an Advisor Can Do That Your Team Can’t
From my experience, many founders often underestimate how much they don’t know. When you’re immersed in building a product, you can’t easily see the blind spots in your business strategy.
This is where experienced advisors come in. A great advisor can:
Save you from making costly mistakes. They’ve been through this before and can help you avoid costly missteps (e.g., legal traps, bad hires, weak business models, etc.).
Unlock funding opportunities. Many advisors have venture capital (VC) connections and can introduce you to investors you’d never access on your own.
Give you credibility. Having a well-known industry leader on your advisory board makes investors and customers trust you more.
Offer strategic insight that your employees can’t. You and your team team are focused on execution. Advisors help with big-picture thinking, market positioning, and high-level business strategy.
Negotiate on your behalf. Advisors with strong industry experience can help you close deals, negotiate contracts, and secure partnerships.
The Different Types of Startup Advisors (And Why You Need Them)
Not all advisors are the same. Depending on your startup’s stage, you’ll need different types of expertise.
Technical Advisors (For Product & Project Management Guidance)
— Help you refine your product roadmap
— Guide your engineering team on architecture & scalability
— Introduce you to top-tier developers & technical hires
Example: OpenAI’s early success was largely driven by advisors from Google DeepMind and AI research labs, who shaped their technical approach.
2. Business Growth Advisors (For Sales, Marketing, and Scaling)
— Help you build repeatable revenue models
— Provide insights on pricing, customer acquisition & market positioning
— Teach you how to sell effectively
Example: Slack’s meteoric rise wasn’t just about a great product — it was business advisor Bill Macaitis (former CMO of Zendesk) who crafted their legendary product-led growth strategy.
3. Fundraising & VC Advisors (For Securing Investment)
— Prepare you for due diligence & investor meetings
— Help craft a winning pitch deck & funding strategy
— Introduce you to VCs, angel investors & accelerators
Example: Airbnb’s first advisor was Paul Graham of Y Combinator, who taught them how to raise funding and refine their business model.
4. Industry-Specific Advisors (For Market Expertise & Connections)
— Provide deep knowledge of your industry’s trends & competition
— Connect you with key decision-makers, enterprise clients & strategic partners
— Help you avoid common industry pitfalls
Example: Stripe’s early advisors included key figures from the finance & payments industry, which helped them navigate regulations and build trust with banks.
5. Legal & Compliance Advisors (For Contracts, IP & Regulations)
— Help protect your intellectual property (IP), trademarks & patents
— Guide you on legal risks, shareholder agreements & employee contracts
— Prevent you from getting locked into bad deals with investors or partners
Example: Many startups fail due to co-founder disputes & legal issues. A strong legal advisor helps prevent these disasters.
How to Find the Right Advisors for Your Startup
Not all advisors are created equal. Some genuinely want to help you grow. Others just want to slap “advisor to [your startup]” on their LinkedIn and collect equity.
Here’s how to find advisors who actually add value.
Where to Look for Startup Advisors:
Warm Introductions: Ask your network. The best advisors often come through trusted referrals.
Investor Networks: Many VCs and angels double as advisors. If you’re pitching investors, ask if they know someone who can help in specific areas.
Startup Accelerators & Incubators: Programs like Y Combinator, Techstars, and 500 Startups have built-in advisory networks.
Industry Events & Conferences: Meet experienced founders, executives, and investors who might be open to advising.
LinkedIn & Twitter (X): Follow industry leaders and engage with their content. Many are open to advisory roles if you make a compelling case.
Red Flags to Watch Out For:
Equity Seekers: Advisors who ask for equity upfront without demonstrating value.
Yes-Men: Those who agree with everything you say, offering no real feedback.
Lack of Availability: If they rarely respond or are consistently unavailable, they won’t be helpful.
Irrelevant Experience: Advisors without pertinent experience in your industry or startup stage.
How to Structure Advisor Relationships
Once you’ve found great advisors, how do you keep them engaged without giving away too much equity?
The Right Way to Compensate Advisors:
Equity-Based Advisors (Common for Early-Stage Startups)— 0.25-1% equity (typically vested over 1-2 years)— Use an Advisor Agreement (SAFE notes or equity grants)
Paid Advisors (Common for Growth-Stage Startups)— Flat fees or hourly consulting rates ($200–$1,000/hour depending on expertise)— Can be a great option if you don’t want to give up equity
How to Keep Advisors Engaged:
— Set clear expectations (e.g., 1-3 weekly calls, intros to investors, etc.)— Track KPIs & measurable impact (e.g., “helped secure 3 investor meetings”)— Make them feel like part of the team (keep them updated on wins & challenges)
The Right Advisors Can 10x Your Startup’s Success
You can attempt to navigate the startup journey alone, facing potential pitfalls and prolonged growth, or you can accelerate your success by learning from those who’ve already traversed the path. A strong advisory team can help you:
Avoid Major Pitfalls: Benefiting from their lessons learned.
Raise Capital Efficiently: Leveraging their networks and experience.
Achieve Product-Market Fit Sooner: Through strategic insights and guidance.
Build Valuable Connections: Accessing networks that might otherwise take years to develop.
Needless to say, running a startup demands relentless hustle and significant sacrifices. Without a robust support system, founders often face overwhelming personal and professional challenges. I saw a Forbes Article revealing that 72% of entrepreneurs report mental health concerns, with 37% experiencing anxiety.
Therefore, as a startup founder, it’s crucial to surround yourself with dedicated advisors who can share the load, provide strategic guidance, and help prevent burnout. This collaborative approach can alleviate stress and enhance your startup’s resilience and success.
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