Why have a board?
As your business grows you may want to think about setting up more Corporate Governance through a Board of Directors, with Independent Directors & a Chairman.
All companies must have at least one director by law. This is usually the owners of the business. And more than likely they’ll get together occasionally & talk about strategy & business planning.
But mostly, that’s not enough… Many companies get to a critical stage where the knowledge, passion and skill of the original owners & directors are stretched. For example, the company might have grown beyond their experience – maybe into new markets. It might need new money for growth & find that its bank or potential investors want to see more “structure”.
If appointing a board is done correctly, the result will be a more effectively run company, and a more profitable company, with management’s efforts being more tightly focused on important projects.
Advisory Board Members are paid a small fee to attend meetings, if they happen more than twice per year. Payment ensures commitment by the Board Members to attend. They also need to carry out the required research and reading before the meeting.
And although you should think of your Advisory Board Members as Mentors, if you want more regular mentoring sessions, you should take on a dedicated Business Mentor.
We have access to a wide range of people through Springboard and other networks, that you can look to appoint to an Advisory Board… just let us know what you are looking for.
4 key benefits of a board are:
- A strong board of directors can add substantial value through their relationships.
- A board composed of qualified outsiders can bring a very useful perspective to bear on behalf of the company
- Management is held accountable to an outside party.
- Having professional “best of breed” governance practices in place can only add value to the company.