Each company has important decisions that it has to make from time to time. It could be about recruitment, stock issuing, purchasing of equipment, moving offices or even a budget approval. Leaving such decisions to a single person is not advisable and it is one reason a company should have a board. As a business owner, you need to ensure that you have the right members for the board who have the best interest of the company in thought.
Look for People that will Add Value
Selecting board members can be a daunting task. You do not want to select people that will not add value to the company. The potential members should be dedicated, focused and willing to make sacrifices for the benefit of the company. People, who are able to brainstorm ideas, communicate seamlessly, make sacrifices and not be too busy for meetings.
Choose a Manageable Number
A startup does not require a large board size. It can gradually increase as the company grows thus you should start with a small size of about 4 members. One of the reasons that the number should not be large is to facilitate the easy making of decisions. It’s easy for a small group to make a decision and even schedule meetings.
Let the Members be Different
The board members should not be of a single profession. An example is having the board made up of only lawyers. It should consist of lawyers, volunteers, and investors. This will prevent scenarios whereby insights lean on one side. It’s a great way to boost value in the decisions made.
What to do after Setting up a Board
Much is expected from any board whether it’s for a startup or an established company. Once you set up the board nothing should be left to chance especially communication.
Detail down the Expectations
The company has its expectations same as the employees and the board itself. Let each member know what is expected of them and should also be given a chance to express what they expect. By doing this, it will go a long way in ensuring that expectations are met.
Setting up a board should be done with a lot of caution. A board plays a huge role in the direction of the company. Once this major task is completed, it’s important that seamless communication is embraced.