How and when should I set up a board for my company?
It has been five years since I started my company and I do not have a board to help in the running of the company and improve in-house decision making. When should I set up a board and who should I bring on? What has worked for others?
You need a board ASAP it will take the load off of you 3 inside the company and 2 outside the company.
A board is a decision that you make when you feel the need for help. If you are comfortable with your management team and their assistance then keep going. If you need business connections that can help you expand because your management team doesn't have the connections, then get the board started.
Paul, I would setup an Advisory Board of confidantes and close allies who are willing to give you guidance and advice as you grow your business. If you are looking for investment moneis and/or an Equity Partner, I suggest you create a Board that is comprised of Founders, early Investors (Angels) and Executives within the company!
As a secretary for a non-profit, you should have president, a vice president that will supervise various areas with a secretary and a treasurer to manage the money. You will also need directors that will work with the vice presidents, and once your year is done, you begin nominations and appoint yourself as a chair person of the board, just with a new leader to guide.
Paul, congratulations on running your business for 5+ years. The fact that you are thinking about a board tells me you are doing well as a business to be even able to think about things like boards and not about company survival, revenue and other issues.
Identify your weaknesses or holes and find experts/advisors to help plug those holes. You don't need a formal board. A board of advisors can work well. Trust and communication is key with these individuals. Find people you would listen to and those who will have valuable things to say.
It's never too early to create an advisory board. I suggest to board be made up of a sales/marketing executive, an operations executive, a financial executive, and perhaps an attorney. A lot depends on what expertise you lack, but a well rounded advisory board can bring experience you might not otherwise be able to afford on a full-time basis.
Thank you for braving this question! I'm also 5 years in and feel overwhelmed with the building of a board! Looking forward to the advice. Thanks, Paul.
Dear Paul. This is not a simple decision , dependant on the timeline or otherwise a "need to do" task. You can keep a company for centuries without a board.
A board is necessary if your company "goes public" or if you need to delegate responsibility or if you are "stuck" and need "fresh blood" to restart.
If you decide to appoint a board then the personnae has to be fitting accordingly to your aspirations and the companys goals or else the will be of a hinder.
It depends on the state of your company now..
Board will helps you take care of some areas, but too many hand cooking the same food will ruin the food.
Choose the area that most "need help", try to make a clear segregation and start to build your board base on your company's need.
There is no late or too early,..it fully depends on your company state.
check the local regulation in your area, consider the requirement in setting up a board for your company and apply expert advise given here. You can not underestimate the value having a board would offer particularly in area of decision making, enhanced company profile and risk assessment from professionals with wealth of experience in areas surrounding your business type.