It is tough at the top. Lonely times. As the CEO the buck stops with you. Then of course finding capital for your venture. That is not easy either. It is not easy for 3 main reasons.
1) you may just not have what investors are looking for
2) you may not be telling them what they want to hear, and
3) you may not be blessed with knowing where investors are and how to contact them, “effectively”.
This is why most entrepreneurs fail to raise capital, because of one or all of these reasons.
The power of an adviser, in any of these circumstances must be to distill what is relevant to your campaign down to one or all of these factors and drive solutions to ensure that you are equipped with the right tools to attract investment. But the secondary power of an adviser is that they will re-calibrate your expectations of what is possible, and at what cost to you. That is, what sum of capital would be reasonably attracted to such a venture, and at what cost to you in getting it, in terms of amount of equity you have to give away. It is rare that an entrepreneur will have a deep appreciation, at the start, of how it works without having sought advice from entrepreneurs who have done it before, or professionals who do it for a living. The last but very important power that an adviser offers is putting you in a stronger bargaining position when working with investors, and negotiating the final transaction, investors will find it less attractive in working with those that are not well advised, or those that are not well educated. This is the hidden benefit to entrepreneurs – that is direct marketing to investors is NOT effective for entrepreneurs seeking capital. It might just work, but investors would much rather your opportunity be screened by an adviser before they attempt to do the same. They just don’t have the time to look at everything that comes their way.
Advisers do not need to be paid for of course – and unpaid advisers can achieve the same outcomes for you. Friends, associates etc. But advisers are more accountable when they are paid to do what you need to meet your objectives.