Every company needs a board of directors – even startups.
Well, OK, maybe not every company. Raw startups – two people in a garage kinda thing – shouldn’t waste their time with anything formal. But young companies – those that are established and on their way, regardless of their size or level of funding should, as should any company more established than that.
It seems that we frequently relate having a board of directors to some kind of funding event. Of course, it often happens that way. Investors require one or more board seats, which becomes the impetus for creating a formal board – at least one with non-employees on it. But even without funding, companies should establish and use a board of directors made up of people from inside and outside the company. A board of qualified people can offer great benefits to a company, its management and its founders.
To me, the most important of these is that board members, unlike informal outside advisors, have a fiduciary responsibility to the company and, therefore, offer advice that is often better thought out and more responsible. After all, it’s their job.
I MAY NOT TOTALLY AGREE WITH THIS POSITION ON SMALL COMPANY BOARDS OF DIRECTORS....I GENERALLY RECOMMEND AN ADVISORY BOARD APPROACH UNTIL YOU HAVE PROVEN RELEVANCE AND ARE THE REAL SCALABLE DEAL .IF YOU PICK THE RIGHT ADVISERS THEY WILL BE COMMITTED AND WILL NOT HAVE THE EARLY STAGE LIABILITY WE WE ARE ALL TRYING TO AVOID TODAY. THERE IS NOT PERFECT FORMULA, BUT JUST GET THE BEST AND MOST EXPERIENCED ADVISERS YOU CAN FIND..... RICH BENDIS
To read the full, original article click on this link: Get a board of directors – even if you’re not funded | VentureBeat
Author: Will Herman
