To learn more about working with consultants, visit board and Advisors. You can also visit the creation and shooters to get your company`s intellectual property protection items. First find what you want in a consultant. You want someone who can help compensate for a weakness you have. Previously, we published some guidelines on issuing the right number of shares/options to employees and consultants. As stated in this article, sharing equity with employees and consultants is often used as a motivational tool and as a way to develop a company`s relationship with that person. The FAST agreement recommends standard equity grants for a single advisor. It`s not uncommon for a tech startup to allocate a 5% equity pool to a group of strategic advisors or an advisory board. In the agreement, it should be noted that an advisor is not directly employed by the company. He or she is an independent body that works with the company for a limited time and for specific purposes. Therefore, no corporate benefits should be extended to the consultant. Awareness of these details will facilitate the relationship, as the role of the advisor is clear. The confidentiality of confidential information should also be included in the consultant`s agreement.
As a result, confidential information about the company is not communicated by the consultant to third parties. It should also be noted that by respecting this part of the agreement, he/she agrees to best preserve the company`s secrets. The return of certain company documents in the event of termination must also be respected. The FAST agreement is used each year by tens of thousands of entrepreneurs and consultants to establish productive working relationships, business advice and support for a standardized amount of equity. Experienced consultants may have a framework that they have used before – as soon as it is time to talk about compensation, they can come up with a structure with which they are familiar. It`s up to you to determine if it`s useful for your business. If not, work with your lawyer and counsel to find an agreement that works. If you decide to provide equity, think about the consultant`s expertise and the phase your business is in when determining the amount. Before promising equity, it`s worth asking a potential advisor if they would invest in your business rather than taking equity. Investing directly gives them more skin in the game and sends a valuable signal to future investors. “You`re actually creating a job description,” Clayton says, “and you want to look for consultants.” For example, if this is your first fundraiser, it might be helpful to have the ear of someone who has done it several times….