First off, it would help to know what a Board of Directors really is. A Board of Directors is a body of elected or appointed members who jointly oversee the activities of a company or organization (Wikipedia). They go by many names, including Board of Regents, Board of Visitors, Board of Managers, Board of Trustees, etc. Part of a typical Board's job is to establish broad policies, ensure financial resources, approve annual budgets, and set salaries.
To many Executive Directors of both nonprofit and for-profit businesses, particularly those that started their companies on their own, it may seem like giving away a great deal of power. Dr. O'Brien tells you why that may not be the case.
1) Boardrooms augment your core competencies
You're working in a small business, probably in an area that you are passionate in. But that doesn't mean you can do it all. You need to be able to manage staff, handle finances, manage recruiting, organize distribution, and perhaps even policy and lobbying. Board members can help with all of those things by setting regulations that help you stay on track.
2) Experienced Board Members help you avoid mistakes
Just as no one can do it all, no one is perfect. But, when you have experienced eyes looking over your organization you can often avoid costly mistakes that may come up.
3) Your Board is a simplification tool
I'm sure i'm not only speaking about myself when I say that sometimes Executive Directors can get very emotionally involved with what they are doing. We want to do it all. And we want to do it the best it's ever been done. Sometimes, however, we need someone to tell us to slow down. this is where your Board comes in. They can often see the forest while you're stuck in the trees.
And, with the power of the internet, you don't even need to have a Board that sits together once a week. You can reach out whenever and however you need. And, better yet nearly at anytime, day or night.
To read the entire article, go to https://www.americanexpress.com/us/small-business/openforum/articles/why-your-small-business-needs-an-advisory-board/.
And let us know in the comments how you built your small business Board of Directors.