Create a Board of Directors





How To



A board of directors can be an economical way to keep any new entrepreneurial venture on track to achieve its goals if it is properly organized. By asking friends and/or family to serve as your board you add the accountability factor. Having monthly or quarterly meetings in person or over the phone will provide a sounding board for the path your business is taking.


The board does not need to be experts in your business. In fact, it may even be better if they are not. Their existence is not to guide you as much as it is to make you think about, and defend, the way you spend your time, money, energy, and other resources.


They may ask many questions that seem to be uninformed and naïve. That is actually a very good thing for the budding entrepreneur as it creates a need to educate them. Answering the board’s questions will force the new entrepreneur to think and rethink points revealing potential success or failure points.


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Step 1: Compile

For your board consider people of different backgrounds. Family members, particularly those involved in the business world, are a good foundation. Neighbors can also help you as a board – particularly because your board meetings will also have a neighborhood get-together feel.


Step 2: Invite

Compel your selected board of your need for their expertise and opinions by sending an old-fashioned letter. Follow-up the next week with a personal phone call. This personal touch will should your desire to add them to this important body at their entrepreneurial venture.


Step 3: Meet

Meet in your home or office or, if finances permit, at a local restaurant on a monthly or quarterly basis. Be prepared with an agenda, an update on business (however not financial specifics unless publicly held), and future activities. Do not feel a need to holdback or conceal information as this will only dampen the board’s effect. Start and end on schedule out of respect for their time and to show you are disciplined.


Conclusion

All entrepreneurs need to add a degree of accountability to their business. By doing so the path to success becomes much straighter.


© 2007 Max Impact Corporation