As our “Startup DNA” blog series comes to a close, we would like to touch on a few important factors outside of company culture, employee motivation and the responsibility of the founder/s. In this installment we will discuss the role of the Board of Directors and why without them your company (especially a startup) could face a multitude of difficulties in its early stages.
Why The Board is Important
First off, it’s important to distinguish the differences between a Board of Directors and a Board of Advisers. The role of an advisor regards advising on a specific niche within your industry. This committee should be tailored to your specific industry and possess skill sets and expertise in areas applicable to your business. Think of this group as your crisis management team.
A Board of Directors is generally made up of key investors holding a stake in the success of your business. These individuals are most likely successful entrepreneurs and have high-level operating experience. Again, this group should be tailored to your business needs. You alone know how you respond to critique, so be sure to take this into account when selecting your Board as they will be thinking strategically about the long-term growth of your company.
How to Pick Your Board
First and foremost, you want to pick individuals who have an investment (either monetary or otherwise) in your company. The success of the company needs to be at the forefront of every decision you and your board make. As a general rule of thumb, it’s better to leave out family and friends from this role given that the emotional ties could cloud their judgment. Choose individuals who are experts in their given field and are not afraid to give you objective feedback. Further, your board needs to be comprised of people who believe in you and your vision as the founder of the company. Objective feedback is great, but butting heads at every meeting will only increase unwanted tension and delay progress.
Age in Consulting
Being an entrepreneur is a difficult task in a world full of well-established companies in nearly every industry. However, being a young entrepreneur is especially trying endeavor because of a perceived notion that “age is equivalent to experience.” We know that logically this simply is not true-and that some of the largest and most influential tech companies in the past decade have been founded by entrepreneurs under thirty. However established business norms have not changed over the past several decades. Establishing a board of directors will not only help legitimize you as a leader of your company, but also allow you to network with more established entrepreneurs, provide a foundation for your position as a founder. At Ascend Integrated, we pride ourselves in being lifelong learners, always trying new methods and learning from our network of mentors, colleagues and industry thought leaders. Ascend Integrated works closely with trusted advisers, consistently reaching out to both subject matter experts and a circle of trusted advisers for enterprise wide decisions and opportunities.
Conclusion:
Starting a business at any age poses challenges, but a board of directors and advisers allows a business to grow and flourish. Your boards consist of investors and subject matter experts who believe in both you and your company. Establishing a strong board of directors and board of advisers will enable your business to grow.
Co-Authored: Mike Brown & Ben Dickshinski