Does your Business need a Board?

Whether you just started your own business or you have been in business years or decades, a question may arise at some point?

Do I need a board?

Just as quickly as the idea pops into your mind, you are likely to dismiss it. After all, most growing companies skip formal board meetings, thinking they’re only for big corporations or funded startups.

There is nuance in the answer, but every company needs some sort of Board.

There are different types of boards – a governing board, also called a fiduciary board, and a purely “advisory” board.

For greater explanation on attributes of a governing board check out my guest column on Spartans Illustrated

A board of directors’ job is to govern. The board is the linkage between the shareholders in a corporation, and those who are in charge of managing the corporation.

So from a governance standpoint, a member managed LLC, for instance, or a privately held family-owned company where there is no difference between the shareholders, the directors and the operators have no need for a governing board. They are all one and the same.

But there are some commonalities to every business that requires a board.

Boards are visionary.

Boards ideally focus outward more than inward. They spend most of their time looking out the windshield. They spend less time looking at historical facts, looking out the rearview mirror.

Whether you’re a solo entrepreneur or you are on the other end of the spectrum, a group of shareholders disconnected from the day to business, you need to make sure that somebody is setting aside time in space in your company for wisdom.

The board meeting is that place to set aside space for wisdom.

I am reminded of the words from Dan Sullivan, Founder of Strategic Coach: “As an entrepreneur, you can be knowledgeable tightly wound, but you can’t be wise tightly wound.”

The board meeting is also the place where key business concerns are addressed before they become crises.

Further, for companies that are founded core mission/vision/values, the board meetings are the time to step back and make sure that the company is not drifting from its mission and vision, or operating inconsistent with its values.

My offer: whether you are a solo entrepreneur or a seasoned company with a governing board, if your company is truly built on a mission bigger than yourself, I will sit in your board meetings over the next 6 months at no cost to you.

Given my bandwidth, this offer is limited to three purpose driven companies. There is no obligation to continue afterward.

If you are leading a purpose driven company and want to bring more clarity and accountability to your leadership, I’d love to talk. You can reach me at Jeshua.Lauka@LightStoneLaw.com or connect with me on LinkedIn!