Why Exited Entrepreneurs Deserve to Be Paid (But It’s Not Always About the Money)
In the start-up world, experience is king. That’s why exited entrepreneurs who have already built and sold successful companies are so highly sought after for advice and mentorship. Their scars (both the good and bad) from the battlefield are invaluable to founders facing similar challenges.
But here’s the question: should exited entrepreneurs charge for their time?
It’s a complex issue. On the one hand, start-ups are often strapped for cash. Every penny counts, and the idea of paying a hefty consulting fee can be daunting. On the other hand, exited entrepreneurs bring a wealth of knowledge to the table. They’ve navigated the fundraising rollercoaster, assembled high-performing teams, and brought products to market. Their insights can be the difference between life and death for a young company.
So, what’s the answer?
Here’s why exited entrepreneurs deserve to be compensated:
Their time is valuable: They’re not just dispensing generic advice. They’re tailoring their experiences to your specific situation. That takes time and effort.
They’ve earned it: Building and selling a company is no small feat. They deserve to be rewarded for their expertise.
It incentivises quality advice: If their help is free, there’s less pressure to deliver real value. A fee ensures they’re committed to your success.
But it shouldn’t always be about the money:
Mentorship can be its own reward. Many exited entrepreneurs enjoy giving back and helping the next generation, so they might be willing to offer pro bono guidance.
Equity can be an option: Offer stock options in your company in exchange for their time. This aligns their interests with yours and incentivises them to see you succeed.
Focus on value exchange: Can you offer something of value in return for their help? Perhaps you can introduce them to potential investors in their next venture or even clients for their current one(s), if indeed they have one.
Ultimately, deciding whether to charge is up to the individual entrepreneur. But start-ups should recognise the worth of the experience they’re bringing to the table. There’s normally a way to structure a win-win situation that benefits both parties.
