For the founders, building the right team is critical to lasting success. But right isn't always what we assume it is, and the wrong choice can be detrimental at best to a start-up and destructive at worst. In fact, in his 2021 article in the Harvard Business Review “Why start-ups fail” Tom Eisenmann, Howard H. Stevenson Professor of Business Administration, notes that “a wide range of stakeholders, including employees, strategic partners, and investors, can all play a role in the failure of a venture.” Put more bluntly, a “dream team” can end up being a wolf in sheep's clothing.

A critical component of this group should be a chest with similar experience, along with a high degree of self-awareness, emotional intelligence and maturity in the field. Strong advisors will also integrate well with the cultural and leadership dynamics of a start-up—keeping it aligned with the founders' visions—and provide an unbiased, knowledgeable perspective when providing direction on integral decisions.

For founders, the need for strong early advisors is more pronounced today than it was even five years ago. A quick look at Forbes 30 Under 30 Venture Capital 2024 it makes clear that many founders are now getting funded in the early stages of their careers, without a host of previous ownership cycles to refer to. And there's a lot on the line: According Charter, the average early-stage startup holding by venture capital firms in 2023 was $3.1 million, previously requiring greater financial responsibility led by founders. Meanwhile, products are continuing to become more specialized and complex, requiring a higher level of subject matter expertise. All of this can increase progress-based burnout rates while shortening the time horizon for success.

All of these dynamics make it even more imperative that founders identify and hire advisory boards early on, and when they do, they MUST understand well.

Here are the top ways to attract, hire and retain the best.

1. Understand the puzzle and identify the missing pieces

Every company is unique, with its own strengths and weaknesses. A 20-year-old founder may have a high level of intelligence, but lack a track record of building multiple companies and the necessary years of development involved. An industry veteran, meanwhile, may be less in touch with next-generation consumer behavior. As a founder, it's vital to assess your company's landscape early on—identify areas of strength (the same qualities that are likely to drive others to invest in you), identify gaps, and hire advisors with specific expertise relevant to address them.

2. Development of a specific compensation system for advisers

A founder's inclination may be to formalize an advisory team only when a company is large enough or far enough away and instead tend to form an informal team of colleagues known early on who provide service and support without payment. While this may buy time and save money/dilution in the short term, the reality is that it will ultimately add up to a lower value during a critical period of early development. A better course of action is to create an advisory compensation system—from the start—so that a team feels truly invested in the company and, in turn, can be held accountable. This may include a percentage grant of equity and associated time frame (usually one to two years). The amount of the grant depends on two factors: the added value of the consultant (time and expertise) and the stage of the company (the earlier, the higher the grant).

Connected: Why Every Entrepreneur Needs a Board of Advisors

3. Create a list of mutually agreed upon goals

As a founder, the more clarity you give an advisor, the more empowered they will be to add value. So before signing an agreement, you and a potential candidate(s) should establish a set of goals and expectations. The latter may include an estimated number of dedicated hours per month, the required percentage of meeting attendance and general availability for advice and referral calls. Setting goals will be more akin to a high-level job description or position overview. It will also identify the critical areas where a candidate plans to add value, along with a map of how they intend to execute accordingly.

4. Introduce the advisory team members to each other and communicate frequently

Once your team is identified and hired, it is essential that you then host a meeting that allows members to get to know each other. The more everyone feels a part, the more they will operate with investments. In addition, it is important to remember that the sum is greater than its parts: a multi-member brain trust usually results in better solutions from the members than if they were working independently.

Also, ensure regular communication cycles (with updates) that provide realistic assessments of the current state of the company's efforts. Sugar-coating a challenging experience will only prevent a consulting team from adding critical value.

Connected: 5 Tips for Finding a Great Advisor for Your Startup

5. Keep evaluating your team and don't hesitate to make changes

As founders, we can become emotionally attached to advisors; after all, they are mentors, advocates, and caregivers who helped raise and educate our “baby.” But as that baby grows, their needs naturally change. A company may grow in size, major product category or align with a new partnership vertical. Some advisors may be able to grow with you all the time, but others may not, so they should be evaluated on a regimental basis. The right team is not always simple available one.

As we see today's founder through a 21^str-Lente century, we are reminded that no founding person or group of people can do it all. However, this does not change market demand and related expectations. With make-or-break almost always on the line, a properly designed advisory team is often a key ingredient to lasting success, provided it's built the right way.