By Fernando Berrocal

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As a brand-new startup entrepreneur, you’re likely aware that startups are liable to lose time, money, energy, and human resources when they don't have the right advisors. However, that's not all the things they waste due to this lack of crucial guidance. A startup may suffer  operationally if judgments are made while relying on the incorrect advisor's advice.

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Mistakes in the advisory board's formation might make the business appear less feasible, which would make it harder to secure startup investment. That is how venture capitalists (VCs) would view such a startup–as the highest risk out of their (many)options. The entire business might be in jeopardy due to this destructive spiral. 

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The Advantages of Selecting the Right Advisors

Entrepreneurs may encounter difficulties after creating a strong business plan and obtaining their initial startup investment. Smart business leaders know they don't have flawless foresight, which is why they need advisors. Also, take into account that startups already have a high failure rate. Therefore, if a founder follows this road without the assistance of a counsel, they will waste a lot of energy–and are liable to create several problems. Utilizing an advisor's skills can aid in avoiding some of the biggest problems. More significantly, consultants may assist in resolving some planned and unplanned issues.

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Everybody has blind spots, and we are unaware of everything. The founders must be receptive to learning that they require assistance in some areas. An excellent method to fill those knowledge gaps is with an adviser. When individual specialists make up for one another's flaws, an advising team works effectively. Since humans are flawed by nature, achieving perfection requires the combined efforts of many individuals. The appointment of consultants has further advantages. For instance, advisers frequently offer access to partnerships, insight into the marketplace, and assistance in enhancing the organization's credibility. They may act as investors' gatekeepers as well. To obtain finance and development, startups must achieve considerable success at an early stage. This is difficult since they have limited time, money, and human resources. With the proper counsel, entrepreneurs can hire the best employees, concentrate their attention on the most important tasks, and build meaningful connections with investors and business partners.

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Investors consider who is on the startup team when deciding whether to invest–even if an organization's advisers don't introduce themselves to potential investors. You are more credible to investors if you have excellent counselors. Investors are aware that having a strong team of advisers will likely result in you making fewer mistakes.  The presence of this type of guidance gives your business a better chance of realizing its full potential sooner than later. In addition to providing many of the same advantages as a board of directors, startup advisors and boards of advisors are a more efficient–and usually a less expensive–alternative.

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How to Identify the Right Advisors

Long-term advisor recruitment demands a greater amount of work. Strong advisers thoroughly evaluate potential initiatives before deciding to accept those that have a good possibility of success and align with their tastes. But to find those individuals, one must conduct thoughtful research. Look around to see whether someone has previously started a comparable kind of business before going to inquire. Try to have a diverse group of advisers for startups. You need a large team of experts with diverse areas of knowledge.

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We recommend that you follow social media, paying close attention to the professional social media of choice: LinkedIn.  This will be an excellent place to look for recommendations in a particular aspect. It also emphasizes how advisers may assist business owners in building their teams by making advisor recommendations. Get introduced to people if you know a mutual connection who can advance the business in your sphere. That's likely the greatest method for assembling a team of advisers, since it increases responsibility and predictability for the work effort when individuals are already acquainted.

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Signs of a Good Advisor

Smart businesspeople should search for key qualities in their counsel. Everything is based on connections, and the relationship between the founders and the advisers they select is the first and most crucial factor to take into account. They must sense a bond with the project they are working on and must be enthusiastic about it. It won't work (even if the adviser is a well-known figure!) if they don't connect with the founders and have open lines of contact. Expertise is the second quality that effective counselors possess. The advisor that executives select must be regarded as a leader in their industry. The third need is actual business experience. Furthermore, the advisor must be familiar with both the overall business and the product itself.

In the startup game, you must make sure that everyone working in your business is aware of and committed to your objective. The dedication of the team will determine whether the startup eventually succeeds or fails. Additionally, it is advised that an advisor's services are typically more effective if they have extensive knowledge in a certain area. Their suggestions are more insightful than those of someone who has switched from one industry to another. Startup entrepreneurs may choose the ideal advisers by conducting research and keeping an eye out for these three crucial traits.  With the right advisory resources, your startup business is on a great track towards long-term success 

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Ready to bring your startup to the next level? Apply to MassLight’s next batch. MassLight supplies capital and a dedicated tech team. We take equity in return. Have questions? Refer to our FAQ page.