Skimm A and Skimm B couldn’t get by without a little help from their friends…meaning advisors. One of the best things we’ve done is create an advisory board — that’s basically a group of people you have a relationship with where you turn to them for the moments when you don’t know what the F you’re doing. It’s a great way to help build connections when you’re first starting and get practical advice as issues arise in your company.
Who are they?
- People who can help you out in various aspects of your business. A formalized mentor relationship.
- People you have gotten to know. One of our investors told us a helpful hint in deciding whether we wanted to make someone an official advisor — there are friends of the company and then there are advisors. Someone can be helpful at different points in your company’s lifecycle and that’s great. An advisor is someone you have a relationship with meaning they have equity in your company that vests over a period of years, so you better want them to be around for the long term. And know that they will roll up their sleeves and help — or not, if that’s what you need.
- People who have time to give. You need to be upfront with a potential advisor about how much of their time you need so they can tell you whether that’s realistic or not. They’re not full time employees. They have their own goals and/or their own companies, so be respectful and honest about what you want out of this relationship.
What do they do and how many do you need?
That depends on your company. You could have one advisor who helps you with fundraising because they have great investor relations and another one who helps you when you need to think about a new branding strategy. Think about what your company needs now and what it could need in the next few years. You can always add them on, but it’s poor form to drop them so make sure it’s a good fit.
Here are some of the categories theSkimm’s advisors fall into (btw there’s overlap):
- The name you need: This could be someone who is a helpful name drop when you’re fundraising or hiring. It gives you credibility and makes other people think, “If that person is involved, I know it’s good.”
- The one who has done it before: This could be someone who has brought a similar company to an exit (IPO or acquisition). They know what lies ahead and can help you navigate the challenges before you even know what you’re getting into.
- The one who has done it at a big company: This is someone who has worked in your industry but on a bigger scale. Example: you’re starting something that is going to disrupt the health care industry as we know it and want an advisor who works at a health insurance company. Good for connections and good for insight.
- The one who is focused on the problem you currently have: Always helpful, you just have to make sure it’s also going to be someone who continues to add value as you get past this one issue. For us, it was really important to bring on someone who had done ad sales before — and who is also someone who could help us think about revenue in general.
- The one who has all the connections: Networkers are always good to have in your corner. This could be an influencer, sometimes it’s a celeb, or just someone who likes to talk about you a lot and will figure out the path to the person you need to meet.
- The one who helps you and your partner: This was something really important to us. We met someone who understands our co-founder relationship inside and out. Sometimes she’s referred to as Skimm Mom. But she’s the one we go to when we need to talk about management or dividing up or the future of our business in general. Not everyone has this type of advisor but it’s helped us a lot.
How much time do you spend with them?
Depends. We usually talk to our advisors in cycles. When we are going through something that they totally get or have been through, we could talk to them multiple times a day — and then not for months. You want people who can be flexible.
What do they get?
Equity. The amount depends what stage your company is in. You’ll probably have to give your earliest advisors more equity as you’ll need more time and there’s more for you to prove. You need an actual advisor agreement that a lawyer should draft that lays out the equity amount and their time commitment and scope of services.
They also get to work with an up and coming company/entrepreneur. That’s a big draw for people who have done a lot and now want to mentor others.
How do you find them?
Make a list of the categories you think you could use help in — and then a list of people who are considered experts in those areas. Also — make a dream list of people you’d like to meet (the big names you feel stupid putting down on paper). Oprah was on ours (humble brag). They won’t all be advisors — and you may not want any of them to be — but it’s an option to keep in mind.
theSkimm: We are really thankful for our advisors. They help us grow up. They tell us when we’re messing up and when to let things go. And listen to all of the issues we have without getting too annoyed. That’s not easy.
Originally published at blog.theskimm.com.
