According to a recent study by the Association of Chartered Certified Accountants most entrepreneurs believe that a board of directors would constrain them in running their businesses.
This is not uncommon, if we look at businesses that are more than a ‘one man/woman company’, these entrepreneurs will have started their business for a reason, and to be told what to do is not one of them, they will also no doubt find having a board to run everything past would slow them up, after all, isn’t speed of reaction to change one of the biggest weapons in the entrepreneurs arsenal ?
There are however flaws in this set up, a board is not only there to run ideas past, they are there to assist you in running and building your business.
A board together with non-executive directors can give the entrepreneur the benefit of their wisdom, they can be objective when you are passionate, they will have an approach that is different from yours that can introduce fresh thinking that can help refresh a business, they can take away the mundane tasks that you should not be bothering yourself with, they can also help you devise a plan for the future, ask yourself, do you know where you are going, what is it that makes your business stand out from the crowd, do you have an exit strategy, do you know what funding is required to meet your growth expectations, the list goes on.
So far from being there to slow you up, the board is there to help you achieve your goals, even if you don’t quite know what they are yet!
My advice, have a board, even if that is you, your accountant/business adviser, a relative who is or has been successful in business (remember don’t measure success by your standards as we all have different standards) and maybe even a member of staff, after all your staff are often at the sharp end more than you!
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