If you’re starting your own company or looking to grow your own, the topic of creating a Board of Directors may arise. This committee, whose members are hand selected by your business, are tasked with overseeing the company. Filling this board with the right members is extremely crucial, after all, they will have a large hand in the trajectory of your business. To get a better idea of what to look for in a successful Board of Directors, follow these tips and start planning your next big venture.
Size Matters
To create the appropriate board for your business, you’ll want to match the size of your company to the size of your board. Depending on the size of your company, this could be a small group of 5-7 people for a small business, or a larger group of 9-11 members for a larger business. It’s important to always select an uneven number of members so you don’t come across any ties when it comes down to voting on agenda items.
Find The Right Fit
Choosing board members who have direct industry experience that correlates to your business is important. This could mean reaching out to former directors or high-level employees. There needs to be a clear understanding of both sides of every argument or discussion, so having a member who typically works for clients and understands the needs of your company’s target base is crucial as well. Try avoiding members that could possibly have conflicts of interest with your company or a bad relationship with any other members or employees; this will help to decrease unsuccessful meetings and arguments within the group.
Understand The Role Of The Board
A Board of Directors can quickly become a Board of Nightmares if the goals of the committee are not understood by all members. Will the board be making all decisions about company focus? Will they only be brought in when investment opportunities arise? Make sure you know why you need the board and that the board members know why they were chosen. It’s also important that you only choose members that understand the responsibility, time commitment, and the role of the board. Try recruiting someone who has served on a Board of Directors before or someone who has had worked closely with one before. Not only will this help you if this is your first rodeo, it will help to bring some structure to members of the group who have not served before.
Building a Board of Directors can be a difficult task, but putting the proper time into selecting just the right members will be worth all of the work in the end. By surrounding yourself with trustworthy peers, you’ll have a diverse group of opinions that you can use to ensure your company’s success.