"Building Successful Products and Navigating Advisor Shares"

"Building Successful Products and Navigating Advisor Shares"

Introduction:
Building successful products requires effective problem-solving and execution. It is crucial to communicate the problem you're solving clearly and resonate with your target audience. This article explores the key aspects of building products and navigating advisor shares, offering actionable advice for entrepreneurs and product teams.

Building Products:

1. Going Broad Before Going Deep: When exploring solutions for a problem, brainstorm a wide range of ideas before narrowing down to a "winner." The first few ideas will likely be obvious, but true creativity emerges when you delve deeper and explore unconventional possibilities.

2. Rigorous Exploration: When presenting a product plan, be prepared to answer questions about alternative approaches. If you haven't considered other options, it indicates a lack of thorough exploration. Constantly seek ways to validate your hypothesis and gather feedback from diverse sources.

3. Define Success Metrics: Clearly define success metrics for your product before launching. By doing so, you avoid confirmation bias and ensure an objective evaluation of results. If there are ongoing debates about product direction within your team, analyze whether there is a fundamental disagreement in measuring success.

4. Effective Communication: Good communication is essential for a healthy team dynamic. Foster an environment where every member feels comfortable expressing their viewpoints, even if they are contrarian. Encourage open discussions and leverage diverse perspectives to drive innovation.

Navigating Advisor Shares:

1. Vesting Schedule for Advisors: Establish a vesting schedule for advisors, similar to employees and co-founders. Consider a two-year schedule with monthly vesting and no cliff. This ensures alignment and commitment from advisors, preventing distractions or liabilities.

2. Choosing Advisors Wisely: Select advisors as you would choose co-founders. An advisor can significantly contribute to your company's success, but a wrong choice can waste valuable time. Seek advisors who complement your weaknesses and have relevant expertise.

3. Documenting Agreements: Create a signed agreement with your advisor, clarifying their role, compensation (equity or otherwise), and expectations. Documenting the agreement is crucial, especially when equity is involved. Consult with a lawyer to ensure a fair and mutually beneficial arrangement.

4. Equity Allocation: Determine the percentage of equity an advisor will receive based on their expertise, contribution, and alignment with your company's goals. Typically, advisor RSAs range from 0.2% to 1% and advisor NSOs range from 0.1% to 0.5% of the company. Consider adjusting equity allocation based on the advisor's early involvement and expected value delivery.

Conclusion:
Building successful products requires effective problem-solving, rigorous exploration, and clear communication. Navigating advisor shares involves establishing a vesting schedule, choosing advisors wisely, and documenting agreements. By implementing these actionable advice, entrepreneurs and product teams can enhance their chances of success and foster productive partnerships. Remember, continuous learning and adaptability are essential in the ever-evolving landscape of product development and business growth.