Over the years we have worked for many small business owners and universally the most successful are open to scrutiny by a Board and/or mentor to provide a sounding board for significant business decisions and to also act as a filter to assess business risk. Unfortunately we are called occasionally to sort out problems after the bad decision has impacted negatively on the finances of the organisation and/or key people have left.
Why should an SME business have a Board?
What are some of the advantages of having your own Board?
1. A Board adds value through strong governance protocols and strategic decision making,
2. The separation of management and Board enables a higher level view of the business risks involved,
3. Negotiating CEO performance issues and
4. Ensuring adequate financial resources are available to carry out the strategic plan.
So why do so many SME’s avoid using a Board?
1. The CEO/business owner believes they have everything under control and do not need outside assistance,
2. Paying for a Board is perceived as a cost rather than an investment,
3. They understand their business and markets better than any outsiders, and
4. We have good legal and/or accountants who we trust.
Our message is straight forward. Appointing a Board with a diverse set of skills will always expose the business to a wider set of ideas to assist the business by challenging existing market performance to accelerate organic revenue growth and to identify potential partners for merger and/or acquisition.
Is your SME business considering having a board?
Good luck with your business venture.