As a company grows, it's important to have good governance... And no company is too small for this.
Governance can start from something as informal as an Advisory Board, with specialists who can advise the business, but who do not have authority to vote on corporate matters nor a legal fiduciary responsibility...
7 good reasons to take on an Advisory Board
(Click here to read the full article)
- Expertise you can't buy
- Business contacts when you need them
- The benefits of a Board of Directors without the hassles
- Simple & inexpensive to set up & operate
- Grow your business faster
- A personal sounding board
- Mentoring
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.
Why have a board?
And then as the 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 owner or owners of the business. And more than likely they'll get together occasionally & talk about strategy & business planning.
More often than not, that's not enough...
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 those matters that will propel the company to the next level.
4 key benefits of a board are:
(Click here to see an article which explains these in more detail)
- 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.
Many companies get to a critical stage where the knowledge, passion and skill of the original owners & directors are stretched. 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" and external input into running the company.
A board, or a team of Directors, should meet regularly & formally to look at the performance & strategic progress of the company. The key is having a group that can separate itself from the day-to-day, look ahead, have a proper debate about decisions & help the company make progress.
Objectivity in performing that role is one of the reasons for taking on an independent director, but there are many others.
And don't forget, a good board will challenge the perspectives and attitudes of the owners & managers... in a good way.
Our Principal Consultant is a Member of the Institute of Directors and also Springboard, & through these 2 organisations, we can access a wide range of young & upcoming or experienced Independent Directors with a variety of experiences... Just let us know what you want.
