Get Thee Startup Advice - But Get It Carefully!

You wouldn't be an entrepreneur if you weren't your own person, captain of your own ship, king of your domain. But let's face it: everyone needs help at some point figuring out the right path for their company to take, and how to avoid the common pitfalls in the entrepreneurial unknown.

Here's a surefire way to get positioned for success: sign on with experienced advisors. They are sometimes hired guns—like professional service providers—and sometimes advisors or mentors who are simply interested in the rewarding experience of supporting an entrepreneur in need.

Whether it's over morning coffee once a week or in the board room, here are our suggestions for how to go about surrounding yourself with great advisors:

The Big Four:

If you haven't already, you should establish relationships with a capable accountant, a lawyer, an insurance provider and a banker. Before you sign on which each of these service providers, find out if they're in your price range, if they're used to working with companies of your size and type, and if they have any auxiliary expertise that is particularly appropriate to your business.

These providers are the bedrock of your advisor network, so you should choose them carefully, using references and research shamelessly. And don't be afraid to work with an accountant who has been recommended by, say, your insurance agent, or vice versa, because if they're used to working together, there can be some synergies to their relationship that benefit you.

IMPORTANT TIP — You ‘Da Man/Woman:

It's all about you in these relationships. Be in touch with your formal advisors frequently by phone, e-mail or drop-in visits — and demand that they be responsive. Keep them copied on all critical information, so that if you're forming contracts or taking other important steps with your business, they know what's going on.

Continually tap into their advice not only about their particular niches, but also about other business questions and issues you have. And never let them forget, in your friendliest way, that you're paying the bill.

Older and Wiser:

Countless entrepreneurs have benefited in immeasurable ways from the regular advice of an experienced business owner or executive who's willing to serve as a mentor to them. To start and grow her body-care-products boutique in Albuquerque, N.M., Body Bueno, Martha Doster relied on the mentorship of W.C. Longacre, a famous local restaurateur who helped her with the subtleties of everything from ordering supplies to schmoozing customers. True, he was her significant other. But you can find mentors through networking at your club or church, or through volunteer groups of retired executives such as SCORE. You might even target someone whom you respect, approach them out of the blue and flatter them into helping you out.

IMPORTANT TIP - What They Get Out of It:

You'd be surprised how many potential mentors are thrilled by the possibility of sharing their experiences and expertise with an eager apprentice. So, typically, they expect no formal compensation, expecting only to be rewarded by the satisfaction of helping a new business owner get started. But if you get to the point where you can provide that valuable advisor with some equity in your company, it would be appropriate to at least offer it to them.

Moving Up to a Board:

Forming an advisory board can multiply the great advice you get. Mark Daly, co-founder of On Target Media in Cincinnati, credits his advisory board with providing wisdom that helped him steer his company to $10 million in sales within a few years — and for helping him avoid pitfalls that could have sunk his firm.

Plan to convene no more than a half-dozen experts on this body, and pack it with diversity as well as experience. But be sure to set rules for your board so it's clear that, while you're seeking their input, advisory board members have no authority or responsibility for actually running the company.

Our Bottom Line

Yes, as an entrepreneur it can feel like the weight of the world is entirely on your shoulders. But we've found that that doesn't have to be the case—if you use them right, good advisors and their golden guidance can provide a lot of smarts and sanity as you try to take your business to new heights.

StartupNation provides expert advice, community forums and resources for entrepreneurs starting a small business, from business plan and life plan development to marketing and sales techniques.

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