A VC in Vacationland

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I have a number of very smart friends who have made a lot of money in selling their companies.  They do not want to go back and run a company, but just would like to help out start ups and possibly make a few bucks. Often, they end up get hit up for all sorts of free advice from aspiring entrepreneurs who want to be "just like them", but are unwilling to share cash or equity. 

Trust me, you can spend a lot of your day giving advice to people for free.  I certainly have and will continue to for people that have done nice things for me in the past. These people are like the tramps in the old movies who would mark the garden gates of people willing to give handouts.  The free advise crowd will find you as well.

My answer?  Monetize your network.  Don't give stuff away for free.  Tell people asking for free advice that it will cost them, either in equity, cash or other favors. Some will run in the other direction. Fine. You will, however, be surprised how many of them agree to pay you for good advise on dealing with their problems. As I tell my children, the "Bank of Dad" is always open, but it may not be willing to lend you money for free.

Hope you had a quiet Turkey Day…