Maximizing Advisor Shares and Navigating the Product Management Landscape

Maximizing Advisor Shares and Navigating the Product Management Landscape

Introduction:
In the world of startups and entrepreneurship, having the right advisors and a solid product management strategy can make all the difference. This article combines insights from two separate sources - "The guide to advisor shares" and "A comprehensive survey of Product Management" - to provide a comprehensive overview of these crucial aspects. We will explore the importance of vesting schedules for advisors, the qualities to look for in an advisor, and the varying influence of product managers across different companies.

The Significance of Vesting Schedules for Advisors:
Similar to employees, advisors should have vesting schedules in place to align their interests with the company's long-term success. These agreements typically span over two years, with monthly vesting and no cliff. However, before offering equity, it is advisable to discuss whether the potential advisor would consider investing directly in the company. By investing directly, advisors demonstrate their commitment and send a positive signal to future investors. This approach ensures that advisors have more skin in the game and strengthens their association with the company.

Choosing Advisors Wisely:
Selecting advisors is akin to choosing a co-founder. While a valuable advisor can greatly contribute to a company's success, an ill-suited one can prove to be a distraction or even a liability. The key is to find someone who complements your weaknesses and acts as a sounding board. Additionally, some advisors may even be interested in investing their own money in future financing rounds, which further solidifies their commitment to the company. It is crucial to establish a formal relationship and document the agreement, especially if equity is involved. Consulting with a lawyer and working collaboratively with the potential advisor is recommended to ensure a mutually beneficial arrangement.

Understanding the Role of Product Managers:
Product managers (PMs) play a critical role in driving success within a company. While the specific responsibilities may vary, effective communication, execution, and product sense are consistently valued across different organizations. Surprisingly, design/UX, empathy, and raw intelligence are less frequently mentioned as highly valued traits for PMs. The level of influence PMs have within a company also varies significantly. Some companies, like Zynga, place PMs in a position of authority, while others, like Apple, have PMs with relatively less influence.

Actionable Advice:

1. When establishing an advisor relationship, define clear expectations and responsibilities in a signed agreement. Documenting the agreement, especially when equity is involved, is essential for clarity and future reference.
2. Consider offering equity to advisors based on their potential contribution rather than solely on past performance. Evaluate their willingness to invest directly in the company as a measure of commitment.
3. If you are a product manager, focus on honing your communication, execution, and product sense skills, as these traits are consistently valued across companies. Additionally, actively seek opportunities to increase your influence within your organization by demonstrating your expertise and delivering impactful results.

Conclusion:
Advisors and product managers play crucial roles in the success of a company. By carefully selecting advisors, establishing clear agreements, and considering equity allocation based on potential contribution, entrepreneurs can maximize the benefits of advisory relationships. Likewise, product managers can enhance their impact by focusing on the most valued traits and actively seeking opportunities to increase their influence within their organizations. Ultimately, by prioritizing these aspects, companies can navigate the challenges of entrepreneurship more effectively and increase their chances of long-term success.