How can you become a trusted advisor to startup founders?

Active listening is frequently an underestimated skill. While investors aspire to provide advice, make connections, and open doors, true value lies in the ability to listen, learn, and help founders make good decisions. Entrepreneurship is an arduous and solitary journey, demanding pivotal decisions with limited information. Many times, founders seek a sounding board to share ideas, express emotions, and navigate crucial choices. In robust relationships, I've witnessed founders and investors evolving into friends, offering support during dark moments and celebrating successes. Similar to any interpersonal relationship, attentive listening and understanding the other person's perspective are often the linchpin to unlocking the best outcomes.

Just like AI, it takes a lot of data points to become a good advisor, and many more to become a great one: - The more companies you advise the better the chance that your advice will be valuable - so be patient - The more questions you ask (e.g. funnel questions) and the more time you take to listen, the higher the chance your advice is valuable and not already a known fact - so take your time - The more people you know who are experts, the higher the chances your introduction is changing - so network - The closer you have your ear to the ground and see trends shape the near and far future the more relevant you are - so stay up to date - The more you care the more you give and get in an advisor relationship - so choose well

This is the most important point. Most advisors are too quick to jump in and tell a founder what to do. Instead, you should listen and ask open ended questions. More like the TV shrinks. Don’t look to give answers. Share your experiences to help a founder find their own answers.

Learning is an important aspect of becoming a trusted advisor to founders, particularly about the product, and industry the founders operate in. I find that founders are more willing to trust an advisor that demonstrates deep knowledge about the company’s products/industry. Also, as a legal advisor, listening is also an important trait, as it helps you as an advisor to process and identify issues effectively before offering insights on how to resolve. Listening also requires effective questioning, this ensures that you elicit the right information from the founder and guide them accurately to stay on topic/issue so as to offer useful help.

Listen, Learn, and Commend: To become the go-to advisor for startup founders, kick things off by being a stellar listener and avid learner. Instead of assuming you've got all the answers, dive into their world with open-ended questions, genuine curiosity, and a hunger to understand their market, product, and vision. Take a moment to commend this approach; recognizing the founders' unique insights and experiences builds a foundation of mutual respect. By showcasing respect, empathy, and a sincere interest, you not only strengthen your relationship but also open doors to pinpointing areas where your expertise can truly shine.

Someone once said to me - they key to enduring relationships is being good to people when they don't need you to be. Firstly, therefore, be patient, spend time listening and understanding the vision till you can empathize and begin to believe in it. That's when you are truly ready to advise an entrepreneur. Secondly, start-ups are backed by passionate entrepreneurs, and the one thing lacking in that passion often is a measured sense of direction on critical decision-making as the allure of octopus-ing in eight different directions is too high. The biggest value an advisor can add on one or more fronts is to be that voice of reason borne out of experience and expertise.

Becoming a trusted startup advisor requires credibility, accessibility and selflessness. Founders prefer advisors who lend hard-won operational/scaling expertise from prior founder or executive experience. Make time for ad hoc calls and meetings on founder schedules, not just yours. Expect nothing contractually in return besides helping entrepreneurs succeed. Add value through warm introductions, recruiting assistance, mock pitch sessions and domain knowledge more than directives. Foster psychological safety for founders to be vulnerable around problems. Have founders' backs even when giving tough feedback. Build rapport as a peer entrepreneur first, advisor second.

Adquira profundo conhecimento do ecossistema, seja prático, empático e construa redes sólidas. Ofereça soluções relevantes com integridade, mantendo confidencialidade. Aprenda continuamente e seja proativo, demonstrando compromisso a longo prazo.

Experiência Prática: Acumule experiência prática trabalhando em startups ou em papéis relevantes. Essa experiência direta fornecerá insights valiosos e aumentará sua credibilidade como conselheiro. Networking para Geração de Negócios: Construa uma rede sólida na comunidade de startups. Estabeleça conexões estratégicas que possam resultar em oportunidades de negócios para os fundadores. Confidencialidade: Construa uma reputação de confidencialidade sólida. Os fundadores confiarão em você para compartilhar informações sensíveis se souberem que sua privacidade e segurança são prioridades. Mantenha a ética profissional e demonstre que pode ser confiável com informações confidenciais.

While listening and learning about certain factual information is the basis of an advisor in any industry, learning about the founder as a person could be one of the deciding factors making you a great advisor to startup founders who are often under enomourous pressure. For instance, listening to the founder telling an anecdotal story in his business and ask guiding questions, helping them reflect and evolve as a decision maker can have gaming changing value on the startup business.

Share the Good Stuff, Boost your advisor game by going beyond the basics. Don't just toss out generic advice – share the real gems. Drop insights, resources, and cool connections that can turbocharge their growth. Share your own stories and slip in some lessons learned from your time in the VC or entrepreneurial trenches. Be the matchmaker, hook them up with potential game-changer contacts, and spill the beans on tools, books, or podcasts that are pure gold. It's not just about being helpful; it's about being the go-to buddy who's got the inside scoop on what they need to rock the startup scene.

Be a champion and be value added to the portfolio company. Building partnerships does not mean to just provide capital, it is the ability to help grow/scale the company. This can be accomplished by sharing other strategic partnerships with the company or to help with effective guidance for tough decisions or assist with key talent acquisition.

Sharing your perspectives informed by your experiences and ideas for solving challenges is really valuable because it helps to develop an open exchange and discussion. Then debate the best path so that everyone is in agreement on the best path. When the path forward is chosen and the rational for the chosen path is understood and sound, it will help to build cohesiveness within the team and with the investors. Everyone will feel more confident sharing additional resources and connections. Connections are as valuable and in some cases, even more valuable than money. Treat them with respect and consideration.

Introducing founders to networks where they can learn from others' experiences is key. This exposure brings fresh ideas and perspectives and broadens their support system. Encouraging practices like reflection and goal setting fosters a strategic mindset, aiding them in navigating business challenges. Honest yet empathetic communication about flaws or risks in their strategies is crucial. This approach demonstrates that criticism is meant for their success and growth.

It's not all about being the tough cookie. Offer that solid support when they hit roadblocks, cheer them on when they crush it, and lend an ear when stress creeps in. This combo of pushing and cheering shows you're all about honesty, care, and building their resilience. It's not just advice; it's being the rockstar wingman they need for the startup rollercoaster.

Provide constructive criticism that is value added. Do not be the know it all and belittle the founders. It is best to help the founder with making decisions and providing guidance which have long term effects on their company.

To establish oneself as a trusted advisor to startup founders, embracing adaptability and evolution is paramount. Serving as an advisor implies steadfastly supporting the founding team and recognizing their schedules' flexibility and unpredictability. Navigating the startup ecosystem requires advisors to be adaptable to ever-changing situations, showcasing their commitment and responsiveness. This approach is frequently adopted by operator VCs who have walked down the same path. They inherently possess the agility and flexibility to adapt to diverse situations. In the ever-changing startup world, building trust and collaboration with founders by showing understanding, adaptability, and alignment with their journey is crucial.

Adapting and evolving with startups is a dance, not a checklist. In my experience, flexibility is key. There's no one-size-fits-all in the startup world. Tailoring your approach to match the unique rhythm of each startup keeps the connection strong. I've seen instances where a slight tweak in communication style or a shift in expectations made a massive difference. It's not just about being responsive; it's about being in sync with the startup's beat, helping them navigate the twists and turns.

Beyond conventional advisory roles, I took on a mentorship position for a startup founder. Through regular coaching sessions, we worked on leadership skills and strategic thinking. Witnessing the founder evolve into a confident and effective leader was immensely rewarding.

Delivering and following up are the building blocks of a lasting partnership. In my journey as an advisor, I've found that small, consistent actions often have the most significant impact. Whether it's promptly responding to a founder's query or ensuring introductions lead to meaningful connections, these gestures build a foundation of trust. The magic happens not just in the initial delivery but in the ongoing follow-up. Regular check-ins show you're invested in their journey, and it's these continuous connections that turn a transactional relationship into a true partnership.

Do what you say you are going to do. If you are going to provide a contact, then do just that. If you are going to help with strategic communications, then provide a solution. Following up is key to ensure that expectations have been met. A clear way to ensure success for deliver and follow up is to create a list of the tasks and send out to all applicable parties. Have a follow up meeting to discuss the status of the tasks list. If a third meeting is required to make sure all the tasks are complete, so be it.

Founders face extraordinary pressures, tasked with meeting the high expectations of their investors while also being responsible for their employees' livelihoods. The well-being of numerous families hinges on how they manage their businesses, a challenge that is far from straightforward. This immense responsibility can lead to rapid declines if not managed carefully. My message to all my founders is clear: "Should you find yourself overwhelmed at 3am, feeling as though the world is collapsing around you, don't hesitate to call me. Together, we can solve anything."...Just be there for them personally, plain and simple...

This also means: Being respectful of the time of founders. Too many investors waste the time of founders by, for instance, scheduling calls with the sole purpose of getting updated on the business, instead of handling it via e-mail. Another example: Not reading a deck shared in advance of a meeting.

Being hyperfocused on a specific industry or skill set is a great way to stand out. Many advisors showcase too broad of a skill set and most entrepreneurs are looking for advisors that help them solve/think through a very specific pain point/challenge.

Tornar-se um conselheiro confiável para fundadores de startups difere significativamente da consultoria em negócios tradicionais. Conselheiros tradicionais focam em estratégias estabelecidas e gerenciamento de riscos em mercados conhecidos. Já conselheiros de startups devem abraçar a ambiguidade, impulsionar inovações e navegar em novos mercados. Isso envolve incentivar experimentações, adaptações rápidas e pivotações estratégicas. Entender e adaptar-se a essas diferenças é essencial para quem quer transitar da consultoria empresarial tradicional para o dinâmico ecossistema de startups.

Becoming a trusted advisor for startup founders differs significantly from traditional business advising. Traditional advisors focus on established strategies and risk management within known markets. In contrast, startup advisors must embrace ambiguity, drive innovation, and navigate new markets. This involves encouraging experimentation, quick adaptation, and strategic pivoting. Understanding and adapting to these key differences is essential for those transitioning from traditional business advising to the dynamic startup ecosystem.

➡️ Make yourself consistently available to the founder by phone, email or in person. Respond promptly to requests. ➡️ When giving advice, explain the rationale behind the guidance rather than directives. Aim to teach, not preach. ➡️ Provide candid feedback, even critical, in a respectful manner focused on their best interest. ➡️ Share relevant personal experiences when applicable to build rapport and empathy through transparency. ➡️ By showing consistent care for the founder beyond just capital, VCs gain trust and become true strategic advisors.

Demonstrate Passion and Commitment! During a critical phase for a struggling startup, my unwavering belief in their potential inspired the team. By demonstrating my commitment through long hours and hands-on involvement, we collectively turned the company around, highlighting the impact of passion on achieving shared goals.

Every VC wants to be Yoda, this guides startup entrepreneurs. Flip the script: it's about being a guide on the side, not a sage onstage, listening and learning. Not your advice—the founder's missteps generally teach the most. Connect and share? Absolutely, but don't distribute your Rolodex like Halloween candy. Value each connection. Support and challenge? Challenge them to challenge you back, though, for real magic. Change and adapt? It's more about evolving together than adjusting to them. Finally, respect and appreciation—not as a checkbox but as a relationship foundation. Be human to make startups stand out in a sea of suits and spreadsheets. Keep it honest, humble, and fun—the best way to forecast the future is to do it with a smile!

Every founder is different and what they need to succeed is most likely different than other founders. Adapt as an advisor to what the founder needs... at that moment. You will be critical in their success if you meet their need, where they are at. Do not be rigid and only support the way you have in the past with other founders.

Be available. Sometimes the most important attribute you can offer your founder client is simply to be there for him or her. It is amazing how many crises can be solved simply by talking them through.