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Standing up a board and evolving it as you grow is essential for entrepreneurs, private companies and family business owners.
In brief
- If you are a start up, looking to scale or running as a high growth company, the composition and function of your board must evolve as you move through the company’s life cycle and funding stage.
How boards can help companies grow
For the ambitious leader of a scrappy young company full of entrepreneurial energy or an enduring private business seeing breakout growth, a board can seem like a burden or a future need, something necessary for public companies, but nothing immediately valuable.
Stop for a moment and ask yourself where you want your company to be in five years. Is the answer greater commercial success? Global market dominance?
Acquired in a successful transaction or on the way to an initial public offering (IPO)?
Whatever your answer, be honest with yourself: Do you and your executive team have the right experience, contacts and skills to reach that goal on your own? Most founders will say they do not. A board can provide a business access to seasoned C-suite leaders and other experienced hands to offer the guidance, wisdom, skills and contacts you need to achieve your objectives and beyond. And when thinking about skill acquisition, a board can be a logical step even for a small private company.
For early-stage and fast-growth companies, the right board at the right time can make the difference between growing successfully and failing to scale.
The type of board and composition of board members you need will change depending on your company’s lifecycle and funding stage.
Download the full primer on: Establishing and evolving your board
Summary
The role of a board is to help position your company for success, no matter what stage in the life cycle. Investing time in developing its purpose and composition as the company matures is essential and can be the difference between growing successfully or failing to scale.
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