Advisory vs Executive vs Board
Understanding where advisory fits in the spectrum of fractional engagement:
| Aspect | Advisor | Fractional Executive | Board Member |
|---|---|---|---|
| Time | Few hours/month | 1-3 days/week | 1-2 days/month |
| Accountability | None - advice only | Full - owns function | Governance/fiduciary |
| Team | No direct reports | Manages people | No direct reports |
| Compensation | Equity/small retainer | Monthly fee/day rate | Annual fee |
| Legal status | Informal | Consultant | Director duties |
Types of Advisory Relationships
Strategic Advisor
- Focus: Overall business strategy
- Typical for: CEOs, founders
- Time: 2-4 hours/month
- Value: Pattern recognition, strategic thinking
Functional Advisor
- Focus: Specific function (finance, marketing, tech)
- Typical for: Teams lacking expertise
- Time: 2-4 hours/month
- Value: Domain expertise, best practices
Industry Advisor
- Focus: Sector-specific guidance
- Typical for: Market entry, industry dynamics
- Time: As needed
- Value: Industry knowledge, connections
Technical Advisor
- Focus: Technical decisions, architecture
- Typical for: Tech companies, product builds
- Time: 2-4 hours/month
- Value: Technical expertise, review
What Advisors Do
Strategic Guidance
Provide perspective on strategic decisions. Challenge thinking, offer alternatives, share relevant experience.
Introductions
Open doors to potential customers, partners, investors, and talent through their network.
Sounding Board
Act as a trusted sounding board for the CEO or leadership team to test ideas and work through challenges.
Pattern Recognition
Draw on experience from similar companies to help avoid pitfalls and identify opportunities.
Credibility
Lend credibility to the company—investors, customers, and partners value experienced advisors.
Advisory Compensation
Finding & Engaging Advisors
- Define the need: Be specific about what expertise or connections you need
- Tap your network: Best advisors often come through warm introductions
- Be clear on expectations: Hours, access, deliverables, compensation
- Start informal: Coffee meetings before formal engagement
- Set up structure: Regular cadence (monthly calls), clear communication
- Review regularly: Assess value quarterly, adjust as needed
Summary: Fractional advisory is light-touch strategic guidance—a few hours per month from experienced professionals. Advisors offer expertise and connections without operational responsibility, typically compensated through equity (0.1-1%) or small retainers.