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How To Survive Your First Year: Picking The Right Advisor

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This article is more than 9 years old.

Year one of entrepreneurship is a battle.

You will struggle with self doubt, fight off impostor syndrome and face uncertainty. Some entrepreneurs challenge this by carrying the weight of the world on their shoulders. If you value your health and want to survive to see year two, I do not recommend this approach.

Here’s an alternative - find advisors that you can call on when you need help. I understand that as an entrepreneur, you’re full of ideas, independent and ready to take on the world. As your experience broadens, you will learn that to get by, you need a little help from your friends. In this post, I’ll share who you should look for, how to prepare and why you should start building your advisor network right now.

First, find successful, independent advisors who have achieved what you want to. Whether they have bootstrapped a small business to profitability, scaled a business to serve customers around the world or have been acquired by a conglomerate, they are worth talking to. Instead of asking to ‘pick their brain’, prepare for your meetings like you would prepare for a presentation to potential investors. You will be surprised at the results - advisors are very helpful when you value their time, ask targeted questions and follow up with them.

Here are some nuggets of excellent advice I’ve received from a few personal advisors over the last year:

"Write me a letter in one year and tell me what you've learned from starting your business."

My university professor, Ken Dovey, challenged me to do what I had been talking about for years - follow through on my pipe dream of entrepreneurship. Unfortunately, your family and friends probably won’t keep you accountable, so finding an independent third party who challenges you and calls your bluff is key to a strong advisory relationship. Some entrepreneurs are happy to take on ‘good’ advice, which is the advice they want to hear or an opinion that confirms their beliefs.

The ‘right’ advice will make you feel uncomfortable, move you to action and potentially, change the course of your life.

"Forget about startups. Solve a problem. Make money."

During the third week of working on my current business, WP Curve, my co-founder Dan and I sought the advice of Hiten Shah. Hiten, a serial entrepreneur and thoughtful advisor, is always willing to help. He delivers advice that cuts through typical startup noise. Instead of acknowledging our concerns about Australia’s small startup scene, he helped to refocus us on what really mattered in the first three months of our business. He explained that as long as we solved our customer’s problems, no-one would care about where we were from.

A great advisor helps you focus on understanding what matters most, even when in retrospect, it seems like very simple advice.

"What does your perfect work day look like?"

I met a successful Australian entrepreneur, Andrew Wadsworth, at a conference in Santa Barbara in 2013. While he was pleased about the early traction our business had shown, he asked me a question that I revisit every day. Andrew has a very specific plan about what he will do each day, down to the exact time he will start work, how much time he will spend at the beach and how much time he spends with his family. He’s focused on creating a perfect work day and challenged me to step into this mindset. I took this challenge and I’m glad I did.

The best advisors will ask you to get specific with your plan and actions.

"Are you building a revenue stream or an asset with enterprise value?"

I met with the owner of a San Francisco venture fund. His instincts were razor sharp and when he started talking, school was in session. He took a cursory glance at our business and warned me of the siren’s song that lures early-stage entrepreneurs to shipwreck. He explained that while consistent, stable monthly revenue is great; the real money to be made in any business is building proprietary technology and assets; or in Warren Buffett’s words, a moat. He explained the great difference between the value of a book of recurring revenue clients compared with a business built from proprietary systems, processes and stable cash flow.

A true advisor will ask you the tough questions and challenge you to answer them.

Not every piece of advice is a pearl of wisdom. Here are a few examples of some of the worst advice I’ve heard.

"Get your MBA / computer science degree first."

The only thing that’s going to help you learn how to run a business is, oddly enough, starting your own business. While formal education is one of the best investments you can make in yourself, it’s not a prerequisite before you get started. If you are set on studying before you start up, try to accelerate your learning by loading up with extra course work, graduating at the top of every class and getting involved in your college community.

As an up and coming entrepreneur, you should get used to biting off more than you can chew.

"You should get a part-time job to supplement your income."

Some of your friends won’t understand why you're investing so many hours in a business without the promise of a steady paycheck or cushy benefits. That’s OK. Instead of trying to change their minds, get out there and find more people who share your mindset and ambition. Local meet ups are a great way to meet likeminded people and rapidly build a strong network. You can use Meetup and Lanyrd to find events where you can meet potential co-founders, other entrepreneurs and even customers. Be specific about what you’d like to achieve from attending an event and if you’re ready to take the leap, volunteer to present.

Don’t try and convince your old friends of your entrepreneurial vision - find some new friends who are already living theirs.

"You should do everything yourself."

Brad Martineau, founder of Sixth Division, explained that “An entrepreneur is not the plumber.”  Even though your DIY instinct is to get your hands dirty with every aspect of your business, it’s not the best use of your time. Successful entrepreneurs are great at marshaling resources. If you lack a particular skill set - like marketing, advertising or copywriting, the first step is to admit that it’s not a strength. Then, you should find someone who can help and employ them. If you want to tip the odds in your favor, see if you can structure a 'startup friendly' deal where you pay based on the results they deliver.

Great advisors will push you towards the highest and best use of your time, even when it means admitting you’re not an expert.

Conclusion

Jim Rohn said “You are the average of the five people you spend the most time with.” Surrounding yourself with the right people is the most important lesson that I’ve learned in year one of my entrepreneurial journey.

Remember, your advisory network includes formal and informal advisors, your co-founder, friends and anyone else you decide to listen to. Carefully select who you include in your inner circle, because there’s a enormous difference between good advice and the right advice.

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