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Yes, Your Small Business Should Have a Board of Directors Featured

Yes, Your Small Business Should Have a Board of Directors group of people sitting beside rectangular wooden table with laptops

Despite having the best small business ideas, you must have a concrete plan to run them. Regardless of the size of your business, operating it is not all about mixing up stuff and expecting it to work. Rather, it requires continuous and evolving processes that are flexible and can be tweaked to make it work. Furthermore, you need to have strong leadership to run your business. This may include pulling together a competent board of directors and advisors. First, identify the gaps and bring together people you believe will help turn the fortunes of your business around by filling these gaps. You will realize a strong return on investment by letting professionals advise you in different areas that you may lack knowledge of. Here are other things you need to keep in mind about the board of directors.

Never be intimidated by the idea of a board

The word Boards of Directors is often intimidating and makes people think it is a collection of highly successful business moguls. Although that is the case sometimes, you can put together a group that you can work with and people you can learn from. You don’t have to formalize your board. Instead, you can have a small group of people who are willing to guide you and share their wisdom on how to run a business with you. Whatever the name you decide to call them, they can help you achieve your objectives and be successful.

Mentors who have been there may offer valuable insights

As a new person to the business landscape, you need people who have been there to give you insights on how to make it. This is where experienced mentors come in handy. They can advise on the business principles that have been tried and tested so that you will not have to use the trial and error method to do certain things. Regardless of the industry you operate in, there are certain business lessons that can help you if done correctly. You can only get this knowledge by developing relationships with mentors willing to offer you help and listen to you. This can prevent you from making mistakes, and you can learn from the challenges they faced. Although they might not have been successful as you are, they have a wealth of experience that can help you move forward.

Choose people with diverse skills

Your team must be large enough to accommodate diverse skills and experience. However, it should be small enough to operate cohesively and efficiently. The size of your board must be appropriate and articulated and should be flexible to be altered if the company needs to change over time.  Your board should consist of at least one non-executive or external director. These individuals are influential because they have independent judgment, which is of great importance to the company. Non-executive directors often have a different view of things and can guide the board by offering an impartial view. They cool things down during a discussion.

Generally, the people you settle on to advise your business should be independent and should not have a financial relationship with you- your business or personal. This will make the board bold because the members will give you an honest opinion without being afraid of the implications their opinions will have on their financial relationship. This is a good thing because you do not need a rubber stamp board, but instead, you need a collection of people willing to tell you as it is. On top of it, select people who understand your company's direction and who buy into your vision. This will make things easy for you.

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Scott Koegler

Scott Koegler is Executive Editor for PMG360. He is a technology writer and editor with 20+ years experience delivering high value content to readers and publishers. 

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