When I bought my company, I knew that having just Mr and Madame on the Board would not give the company any credibility in the local market, so I invited two independent and non-executives to join the company Board. After the initial surprise, they wondered what could they bring to the company, without really being in the operations.
However, with regular meeting to discuss the strategy, and give local advice, and challenge certain decisions, they helped immensely in the future operations.
Over the years, their outside support, neutral vision, helped make difficult but necessary decisions, as the company struggled through a difficult period.
As your own boss, and being completely tied to the company, both financially and emotionally, it is comfortable to have an outsider remind you that you are not alone in the hard decision making, and with whom you can share the problems.
According to Deloitte “a key benefit of having independent board members is their different and diverse perspectives, as well as their ability to augment the business owner’s own knowledge and expertise with their own different backgrounds and experience”.
At the start of a small company, the owner, is the entrepreneur, doing most of the work, on a day to day basis, managing all aspects of the company. As their is growth, the CEO will bring in other team members to take up different roles, and so the owner becomes more of a manager, delegating and directing his new team. This is not an easy transition, and outside independent Board members will be there to guide him. Experienced board members can guide the manager as their role changes and new methods are implemented, offering assistance in developing a shorter- and longer-term strategic direction for the company.
Independent Board members can help also when raising funds to outside investors, as sometimes the lenders wish to participate in the management of the new funds for the re-assurance of their investment.
Today, Board are looking for experts in certain fields to help in their strategy, helping their growth and managing the crisis.
Do you want an independent Non-Executive, to guide you in your growth, we can discuss you company and see how I can help you.
Article publishe in my linkedin profile. too.