Today, we’re talking about how to take advice.
1. Remember that advice is not absolute truth. In fact, you should often try to solicit a range of different opinions, especially in tough situations. In my opinion, the real purpose of advice is to provide you with potential options to resolve a problem or ask you hard questions about a plan.
2. Experience. It’s important to check if the advice is based on significant experience. Unfortunately, not everybody will tell you when they don’t know something. Questions like — “how many times have you implemented that approach?” or “is this something your other portfolio companies do?” are perfectly reasonable and help you better understand the value of the suggestions.
3. Motivation. Make sure you understand an advisor’s incentives. Regardless of how objective someone tries to be, they may suggest options which could reward them. Be careful, especially when money is involved.
