Why startup need an advisor
Who is a startup advisor?
A startup advisor works with the company very closely on their strategy and advises them on various aspects, especially on product development, marketing, and finances. These three dynamics are crucial to every startup
Why startup needs an advisor?
Well, no one is a master in everything they do and taking a DIY approach for your startup can lead you to trouble. Therefore, experts recommend entrepreneurs to seek advisors assistance in crucial aspects of a startup, before taking any decision. Startup advisors are equipped with enough knowledge and trends of the agile market that will ultimately assist entrepreneurs in making an informed decision.
NEED HELP TO FIND ONE?
Types of startup advisors
A financial advisor is the backbone of every startup; they are also known as a financial planner. A financial adviser helps you develop a strong financial strategy for your startup that further assists you in making an informed decision concerning your investment, ways to squirrel money, etc.The responsibility of a financial adviser is to gather information about your financial situation and advise you on investment planning, risk management, superannuation, retirement, financial benchmarking and tax. More so, remember, a financial adviser should hold a finance degree as per your country’s law.
A right insurance plan can cover the maximum risk of your startup, allowing you to stay stress-free from unnecessary mishaps. However, choosing the right insurance policy can be overwhelming. That’s the reason businesses consult with insurance brokers to get the right insurance policy for their assets, employees, and liability. An insurance advisor is abreast of all trends in the insurance market and advises you with the right insurance policy plan for your startup. They can negotiate a better policy to offer you cost-effective plans.
Legal experts are the one that you cannot overlook in the initial years of your startup. You can find lawyers for your diverse startup issues that you might come across at some point in your startup lifecycle. However, legal experts can guide you in:
- Choosing the right startup structure
- Obtaining a license for your startup and complying with regulations
- Drafting legal contracts
- Protecting your Intellectual Property (IP)
- Resolving a variety of disputes
- Insurance and finance
- Debts and bankruptcy
- Closing your startup
A startup mentor is usually a role model of entrepreneurs that boosts the inner enthusiasm of the owners, keeping you strong through bad times. A startup mentor can be an informal advisor- a person who can be your family member or friend or consultant. However, there are formal advisors as well that involve specific programs run by the government or successful entrepreneurs.
REGISTERED INVESTMENT ADVISOR
These types of advisors are kind of experienced financial advisors who change their track from the current field because they didn’t like the culture- they dedicated themselves in the investment field, advising a various entrepreneur to make better decisions. More so, these advisers are always updated with the stock market and keep guide entrepreneurs with the one-of-a-kind investment plan.
The role of a connected adviser is to introduce great people or clients in the industry. However, once you are connected to a person, your relationship might fade away if you don’t keep in touch. That’s the reason it is advisable that entrepreneurs should analyze the connection and then hire an advisor who can introduce you to the other party.
These are the most common type of startup advisers and startup generally look for accountants to streamline their accounting books. Some firms hire full-time accountants and some just seek advice once a year. Accountants are responsible for the following tasks:
- Beginning, acquisition, or closing a startup
- Tax preparation and filing
- Tax deductions, tax and concessions
- Obligations to employee
- Managing all the financial records
Analogue advisors are a group of people who belong to another industry and have a different perspective. So collaborating with such people helps you explore other areas of expertise and identify various issues in your own startup. A different perspective can help you spot the potential blockade in your way and get the right solution.
EXPERT / STRATEGY ADVISOR
As the name suggests, expert advisers are the one who can bridge the gap of your knowledge. These experts are pro in technology, human resource, accounting, marketing, sales, etc. You might come across a point in the startup lifecycle, where you will require an expert to find the solution to a problem in any of the areas mentioned above.
LONG TERM ADVISOR
Furthermore, startup should look for a long-term adviser who can serve you with different startup issues. If you are not a legal expert, seeking advice for a long-term lawyer who can serve you with various legal services is vital. Same is the case with accounting, if you are from a non-accounting background hiring an accountant can help you keep the accounting process seamless and keep you away from unnecessary penalties during tax season