So you’ve grown your idea into a bona-fide company. Congratulations! Now that your business is steadily growing, you’re bringing in new clients and making a profit, what’s next? It’s time to think even bigger.
Even if you’re not a multi-million dollar corporation, you may want to consider establishing a board of directors. A board of directors is a group of people who can help you grow your business by offering expertise and even challenging you and your decisions about your company.
But who needs a board of directors and how do you go about putting one together? If your startup is considering taking on investors, then you definitely need one, but you might also consider a board to help you grow your company and protect your financial investment.
When creating a board, consider looking for people who are trustworthy, professional, opinionated and who will challenge you. Here are a few tips to help you in creating a Board of Directors for your company:
- EXPERT INPUT– Your company may not be a multi-billion dollar business, but that doesn’t mean you don’t need experts to help better your business. When looking for people to be on your board, look for an expert in your field who has nothing to do with your company. For instance, if you are in the healthcare industry, you may ask a retired doctor to serve on your board.
- OPINIONS WANTED – Your board should consist of people who are not afraid to give their opinion. A friend, who says yes to everything or doesn’t offer objective feedback, wouldn’t make a good board member. Look for someone who is a team player, but isn’t afraid to take the lead or argue when he or she objects to an idea or the direction your company is going in.
- DIVERSITY RULES – Make sure you have people on your board who know things you don’t and make sure your company’s board is diversified. For instance, if your healthcare company’s Board of Directors is made up entirely of doctors, you might lose focus on the business side of things. Bringing in someone with a human resources or CEO background is a great way to keep your board diversified.
- SIMILAR VISION – The people on your board have a say in the direction of your company, so make sure board members share your vision and fundamental goal for the company. You want to have opinionated board members, but in the end, if your views differ from your board members, then you may have trouble implementing future strategies.
A Board of Directors can give you advice you might not have even thought of, be in your corner and connect you with important people. If you are considering putting a Board of Directors together for your own business, e-mail me or give me a call and I will talk you through the process. The more people who are behind you, the better and bigger your business will be!