Nolsen Bedon, Ltd.

Building a Board: Build a board who actually solve problems.

Put together a board of directors who will work as partners in your startup’s success. You want people who will provide ideas, let you access their personal networks, solve the management’s thorniest problems — and then get out of the way and let your people work.

In startups, private equity investors have an influential role, especially when they sit on the board of directors of the new business. Successful startups tend to have boards made up of people who take an active role in growing the business.

A good board of directors for a startup should:

Find the resources the company will need

Provide financial stability by putting in place robust financial reporting systems and processes

Provide assistance in developing a viable business strategy

Provide the introductions to other key entities that will lead to the formation of strategic alliances

Give hands-on assistance with the later rounds of financing

Be a great ongoing source of advice, wisdom, customer contacts, financial insights and support

Know when they have worn out their welcome and sense when it’s time to bring in a fresh set of directors with different skill sets who can guide the future growth of the firmIn all, the chances of success are significantly enhanced when a startup’s board of directors is able to work hand in hand with the management team to solve problems and address the key issues. When the directors are aligned with what the management are attempting to achieve, great things can and often do happen.

Startups That Work

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