Cut the Fat: Why Your Startup Doesn’t Need Advisors or Boards

Many entrepreneurs obsess over forming a board and finding advisors.

On paper, it sounds perfect: stronger governance, and invaluable advice—what’s not to like? But the reality is far more complicated.

Advisors

Advisors, like mentors, can be game-changers—in the short term. However, unlike mentors who offer advice on a transactional basis, advisors are a long-term commitment. And here’s the catch: the quality of their advice tends to decline over time.

The Downside of Advisors:

• Lack of Deep Expertise: Advisors often come with a wealth of experience, but not always in your specific field. Their advice can quickly become generic and disconnected from the realities of your startup. What worked for them might not work for you.

• Out of Touch with Reality: Advisors spend limited time with your company. As the months pass, they lose touch with the nitty-gritty details of your operations. The result? Their once useful insights turn vague and impractical. An advisor might provide valuable input for the first three months, but beyond that, their contributions often fade.

• Costly Investment: Advisors usually ask for equity, and the ROI is far from guaranteed. They may take shares without delivering significant long-term value.

• Conflicting Guidance: Multiple advisors? Be prepared for conflicting advice that can leave founders confused and stuck, rather than empowered.

Solution?

Seek specific expertise on a short-term basis. Pay for that help rather than giving away shares. Keep the relationship-focused and transactional to ensure relevance.

Boards of Directors

Many startups rush to create prestigious boards, chasing big names. But here’s the reality: a board won’t magically drive your startup to success.

The Pitfalls of Boards:

• High-Profile, Low Impact: While it’s tempting to stack your board with high-profile individuals, this isn’t Hollywood. Their star power might look good, but it won’t translate into actionable advice or meaningful contributions.

• Overpopulated and Inefficient: Boards often become overcrowded, leading to decision-making paralysis. Instead of speeding up critical decisions, they slow down the company’s agility—something a startup can’t afford.

• Investor-Driven Agendas: Investor-heavy boards push for financial outcomes, often at the expense of long-term strategy. Many investors aren’t entrepreneurs themselves, so their insight into day-to-day startup challenges is limited. Expect pressure for early exits, whether it’s the best path for the company or not.

• Out-of-Touch Members: Many board members are retired or removed from the cutting-edge of technology and innovation. Their advice may be outdated and irrelevant to today’s fast-moving business environment.

• Costly to Maintain: Boards can be expensive, taking time, energy, and resources from what truly matters—growing the business.

• Emphasis on Legal/Compliance Over Strategy: As board members drift from the operational realities of the startup, they often fixate on legal and compliance matters, which are rarely the most pressing issues for early-stage companies.

Bottom Line

Rather than relying on a bloated board or long-term advisors, focus on building a lean, agile team with short-term expert input when necessary. Keep the focus on what drives value for your company—not pleasing outsiders or chasing prestige.