At some point in your growth journey, you need expertise you don't have and don't have time to develop.
Perhaps you're raising capital and need someone who understands investor expectations and corporate governance. Perhaps you're expanding internationally and need guidance on tax and regulatory structures. Perhaps you're building a management team and realise you've never built an HR function. Perhaps you're facing a customer contract that raises legal questions you've never encountered.
In each of these moments, you have a choice: muddle through with limited knowledge, consuming leadership time and risking expensive mistakes. Or engage advisors—external experts who bring knowledge and experience from across multiple companies—to guide your decisions.
Most scaling founders choose the latter. Not because they lack capability, but because external expertise is faster, cheaper, and de-risks critical decisions. A good financial advisor can save you more in taxes in one year than they cost. A good lawyer can prevent a £500k mistake in one contract. A good non-executive director can provide perspective that keeps you from wandering off a strategic cliff.
This guide explores the key advisory services every scaling founder should consider: what they are, when you need them, how to choose good advisors, and how to structure relationships that actually create value.
The Advisory Service Landscape: What You Actually Need
Not all advisory services are equally important. Some are essential; others are nice-to-have. Understanding the distinction helps you allocate budget wisely.
There are dozens of advisory services you could theoretically purchase: management consultants, marketing advisors, sales coaches, tech advisors, HR consultants, and many more. Each claims to create value. Many do, if used well. But not all are equally critical for a scaling founder.
Essential Advisory Services (Priority 1–2):
Legal Advice: You need a lawyer. Not a generalist, but someone experienced in your sector and the specific challenges your business faces. If you're B2B SaaS, you need someone who understands SaaS contracts and IP. If you're manufacturing, you need someone who understands product liability, employment law, and supply chain. A good lawyer prevents expensive mistakes—in contracts, employment disputes, IP protection, and regulatory compliance. Cost: £3–10k per year (retainer) + additional for major work.
My first contract with a major customer had a clause that would have cost me £250k if the customer had invoked it. My lawyer spotted it in review. That single save justified hiring them for years.
Financial and Tax Advice: You need a CFO-level advisor or fractional CFO. Someone who understands your financial metrics, advises on cash management, tax planning, and cap table strategy. As you grow, understanding your unit economics, runway, and capital efficiency becomes critical. A good financial advisor also keeps you compliant with tax obligations and helps you optimise your structure. Cost: £2–8k per month (fractional CFO); £1–3k per year (tax advisor only).
Financial advice becomes increasingly critical as you:
- Approach or exceed £5m revenue (complexity increases)
- Raise external capital (need to understand cap table, dilution, investor expectations)
- Expand internationally (tax and entity structure become complex)
- Approach profitability or scale (need to optimise cash and tax position)
Important but Not Always Immediately Critical (Priority 2–3):
Non-Executive Directors / Advisory Board Members: These are typically experienced founders or executives who take a board or advisory seat and bring strategic perspective, networks, and accountability. They're less about day-to-day advice and more about quarterly strategic direction, key decisions, and introductions. Cost: Often equity (typically 0.25–1%), sometimes a nominal fee.
HR/People Operations Advisor: As you grow past 10–15 people, you need structure around hiring, culture, and compliance. An HR advisor or fractional CHRO can help you build hiring processes, create compensation structures, ensure employment law compliance, and scale culture. Cost: £2–5k per month (fractional); £1–3k per month (part-time consultant).
Industry or Functional Expert Advisor: Depending on your business, you might need expertise in sales strategy (if you're B2B), product management (if you're product-driven), marketing (if you're growing through marketing), or supply chain (if you're physical product). These are typically brought in for specific challenges or for a period. Cost: Varies widely; £2–5k per month is typical.
Strategic But Discretionary (Priority 3–4):
Executive Coach: A coach working with you personally on leadership, decision-making, emotional intelligence. Valuable as you navigate the emotional and relational complexities of leadership. Cost: £3–10k per month.
Management Consulting: Helpful for large transformations (operational restructuring, market entry, M&A due diligence) but often expensive and should be carefully scoped. Cost: £50–300k+ depending on scope.
A scaling business (£1–20m) should budget 2–4% of EBITDA (or 1–3% of revenue if pre-profitable) for advisors and external expertise. This covers legal, tax, accounting, fractional CFO, and a non-exec or two. This isn't excessive—it's de-risking significant decisions.
Selecting Advisors: Finding Quality and Fit
Not all advisors are equal. The difference between a great advisor and a mediocre one is transformational. Here's how to identify and evaluate them.
The biggest mistake founders make in selecting advisors is choosing based on reputation or credentials rather than specific fit for their situation.
A "prestigious" law firm might be a poor fit if they don't understand your industry. A highly credentialed management consultant might not understand your specific business. A well-known CFO advisor might not have experience in your sector.
Here's how to evaluate advisors:
Define Your Specific Need
Don't hire a lawyer generically. Hire a lawyer for a specific need: "I need someone experienced in SaaS contracts who can review our customer and partner agreements, advise on IP structure, and guide our employment practices." This clarity helps you assess fit. A lawyer might be great at M&A but mediocre at ongoing operational advice.
Evaluate Sector and Company Stage Experience
The best advisors have deep experience in your specific sector and at a similar company stage. Ask: "Have you worked with companies like ours? What was the revenue range? How many people did they employ? What sectors were they in?" Someone who's worked with 50 B2B SaaS companies in the £5–50m range is far more valuable than someone who's worked with many companies across all sectors.
Look for Practical Bias
The best advisors are pragmatists. They understand constraints (your time, your budget, your complexity). They focus on what matters most. Poor advisors are perfectionist—they want everything exactly right, creating work that's not proportionate to your stage. Good advisors say, "At your stage, you need X. You don't need Y yet. We'll revisit Z in six months." This pragmatism is gold.
Assess Whether They Ask Questions
A good advisor's first meetings involve more questions than answers. They want to understand your business, your challenges, your constraints. Poor advisors jump to solutions based on patterns they've seen elsewhere. Patterns are helpful, but not when applied without understanding your specific situation.
Where to Find Good Advisors:
- Referrals from other founders: Ask peers in your network: "Who's your lawyer? Who's your CFO advisor? Who's on your board?" Personal referrals are the gold standard.
- Industry associations and networks: Industry groups often have recommended service providers. Helm Club members often refer their own advisors.
- Your investors: If you've raised capital, your investors often have relationships with advisors they trust. Ask them for recommendations.
- Your existing advisors: Your lawyer might recommend an accountant. Your accountant might recommend a fractional CFO. Let your advisors expand your advisory ecosystem.
- Fractional CEO services and outsourced CFO firms: Companies like Boardroom, Vala Capital Partners, and others specialise in fractional advisory. These can be good entry points.
Red Flags in Potential Advisors:
- They lead with their credentials or how impressive their client list is
- They prescribe solutions before understanding your situation
- They're unavailable for substantive time; they only want brief quarterly meetings
- They don't understand your business model or sector
- They seem more interested in expanding their engagement than in solving your immediate problem
- They push equity or board seats before they've really proven value
Key Advisory Relationships at Different Growth Stages
Your advisory needs change as you grow. What you need at £1m revenue is different from £5m, £20m, or £50m. Here's the roadmap.
| Growth Stage | Revenue Range | Critical Advisors | Priority Order |
|---|---|---|---|
| Early | £0–2m | Experienced founder mentor, basic legal, accountant | 1. Mentor 2. Legal 3. Accountant |
| Growth | £2–5m | Fractional CFO, legal (expanded), business mentor, optional: non-exec | 1. CFO 2. Legal 3. Non-exec 4. Functional expert |
| Scale | £5–15m | Fractional CFO (or internal), legal, non-execs, HR advisor, functional experts | 1. CFO 2. Non-exec board 3. Legal 4. HR 5. Coach |
| Mature | £15m+ | CFO (often internal), strong legal team, non-exec board, specialist advisors | 1. CFO 2. Board 3. Specialist advisors 4. M&A counsel |
£0–2m (Pre-Scale): Keep advisory minimal. You can't afford much. Focus on one great mentor (free or cheap). Get basic legal review for contracts. Get accounting/tax basics right. Everything else is secondary.
£2–5m (Growth Phase): You can now afford it. Bring in a fractional CFO if you haven't. Expand your legal advisor's scope. Consider a non-exec or business advisor who meets quarterly. Start thinking about functional expertise if you're weak in a key area.
£5–15m (Scaling): You need a real management team and strong advisory support. A fractional CFO or internal CFO is essential. Legal should be on retainer and integrated with your business. You should have a non-exec board (2–3 people) meeting quarterly. Bring in specialist advisors (sales, product, supply chain) as needed. Consider an executive coach if your leadership feels stretched.
£15m+ (Mature/Scale): You likely have an internal CFO and potentially other executives. You want a strong non-executive board. Legal should be integrated into major decisions. You may have multiple specialist advisors. M&A counsel becomes important as you consider strategic partnerships or exits.
At £2m, I thought advisors were a luxury. At £5m, I realised they were essential. The advice I get from my CFO and non-exec now saves me more than it costs in cash every month.
Building a Non-Executive Board: Structure and Effectiveness
A well-functioning board of non-execs is one of the most valuable advisory structures. Here's how to build and operate one effectively.
A non-executive board is different from formal governance (which is required if you've raised institutional capital). A non-exec board can be structured flexibly: it can be 2–5 people, it can meet quarterly, it's there to provide strategic advice and challenge your thinking.
Who Should Be On Your Non-Exec Board?
Ideally, 2–3 people with diverse experience:
- An experienced founder or CEO: Someone who's built a successful business, understands your sector or a similar sector, can challenge your strategic thinking, and provides accountability.
- A functional expert: Someone with deep expertise in a critical area for your business (finance, sales, technology, supply chain, depending on your sector). This person advises on specific strategic decisions in their domain.
- An industry outsider: Someone from a different sector who can bring fresh perspective and isn't constrained by "how things are done" in your industry.
Board Meeting Structure:
Quarterly Meetings (3–4 per Year)
Meet in person if possible, or high-quality video. 2–3 hours per meeting. Board members receive a board pack in advance (typically 5–10 pages covering key metrics, decisions, challenges).
Structured Agenda
30 mins: business performance and metrics review. 30 mins: strategic update and upcoming decisions. 60 mins: deep dive on one or two critical challenges. 30 mins: board advice and recommendations.
Confidentiality and Preparation
Board members sign a simple confidentiality agreement. They prepare in advance by reading the board pack. They come ready to contribute, not just listen.
Follow-Up and Accountability
After each meeting, document decisions and action items. Share a summary with the board. In the next meeting, update them on progress. This creates accountability—both for you to execute and for the board to add value.
My non-exec board catches things I miss. They challenge assumptions I didn't realise I was making. They open doors and introduce customers. The quarterly accountability to update them on progress keeps me honest about execution. It's transformed my decision-making.
Compensation for Non-Execs: Typically either equity (0.25–1% depending on their seniority and engagement) or a fee (£3–10k per year, or £2–5k per quarter for a more engaged non-exec). Many successful non-excs take equity rather than fees, aligning their interests with yours.
Mistakes to Avoid:
- Recruiting non-execs who don't have time or commitment to prepare for meetings
- Having too many non-execs (decision-making becomes diffuse); aim for 2–4
- Not using the board for real strategic decisions; relegating them to informational meetings only
- Asking non-execs to do operational work; they're strategic advisors, not to execute on decisions
- Not giving them access to information; they can't advise effectively without real data
Making Advisory Relationships Work: Structure, Communication, and Measurement
Great advisors can create extraordinary value if the relationship is structured and managed well. Here's how to maximise what you get from advisory partnerships.
Written Engagement Letters: Even if informal, have clarity in writing. What is the scope of the engagement? How often will you interact? What's the compensation? What's the term? This prevents misunderstandings and ensures both parties have aligned expectations.
Regular Check-Ins: Depending on the type of advisor, check in regularly. A fractional CFO might be involved weekly or biweekly. A non-exec meets quarterly. A specialist advisor might meet monthly on a specific project. The cadence matters because it creates momentum and accountability.
Bring Real Problems, Not Polished Situations: The best advisory value comes from working through real challenges. Don't wait until you've figured everything out. Share the messy problem and work through it together. Advisors add value in the exploration, not just the conclusion.
Listen, Then Decide: Your advisors provide input, not direction. You decide. Sometimes you'll implement their advice. Sometimes you'll modify it. Sometimes you'll disagree. Good advisors respect this. They're not there to control your decisions; they're there to improve your thinking.
Measure and Track Value: Track what advice you implement and what value it creates. This isn't to be transactional, but to understand where you're getting real value. If an advisor consistently gives advice that doesn't improve outcomes, you might reconsider the relationship.
A good advisor should create value of at least 3–5x their cost annually. This might be through direct savings (tax advice, legal risk mitigation), revenue creation (introductions, strategic guidance), or risk reduction (preventing mistakes). If you're not seeing 3x ROI, reconsider whether the relationship is working.
When to Change or Exit an Advisory Relationship:
Advisory relationships aren't permanent. They should evolve as your business changes. You might outgrow an advisor. Their expertise might become less relevant. The relationship might become stale.
Signs it's time to reconsider:
- They don't seem engaged or prepared for meetings
- Their advice consistently doesn't apply to your situation
- You're not implementing their recommendations (either because they're not valuable or because the fit is wrong)
- The cost no longer feels justified relative to value
- Your business has evolved beyond what they can advise on
If you decide to change an advisor, do it gracefully. Thank them for their contributions. Be honest about why you're making the change. Often, advisor relationships can evolve from active engagement to occasional check-ins, which works well for both parties.
Five Principles for Building Your Advisory Ecosystem
- Prioritise legal, financial, and functional expertise; these create the most value
- Select advisors for sector and stage fit, not just reputation or credentials
- Build a non-executive board for strategic accountability and perspective
- Structure advisory relationships with clear engagement, regular cadence, and documented scope
- Measure value and evolve your advisory ecosystem as your business grows and changes
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