Choosing a Board of Directors, #2

from More Business.com 5/11 enhanced by Peter/CXO Wiz4.biz 8/14

Qualities of a Good Board Member.
· Experienced – Your board is there to offer advice & direction. Don’t choose a board member simply because he or she is a friend or family member. Pick them based on experience in analyzing information & making sound decisions.
· Competent – Your board should be competent in the field of your business. While it may seem desirable to have a non-Tech person on your board, it may not do you any good if you need advice & direction in SW Engineering.
· Enthusiastic – excited about your Vision – a “Can-Do” attitude. Be sure your board is enthusiastic about helping your business do everything it can do to succeed.
· Honest – A bunch of “yes men” are not helpful in setting up business strategy & vision. Find a board that is ready to be honest with their opinions.

Selecting Your Board.
Unlike your family, you have the opportunity to pick and choose your board members! Do it like you were assembling the “dream team” of the Olympics. Choose wisely. One important thing you will need to decide is whether your board will be compensated. Most larger corporations will generously pay their board members, including travel, room, & meal allowance for meetings. However, in the case of smaller businesses, compensation may be interest or shares in the company or even just a catered meal during board meetings.

Other Tips for winning the Board Game
Some other nuggets to keep in mind during the selection of your board of directors include:
· Keep the board size “manageable”. Avoid selecting too large of a board of directors. Too many voices & opinions could keep your small business from moving forward.
· Find board members “good at raising money”. If your small business is still growing and needing financing, a board with contacts and experience with raising money could be a valuable addition.
· Compliment existing management. A board that has similar temperaments, risk aversion (or taking), and enthusiasm can create great synergy with existing executive directors.

Mandatory to Magic.
Remember, if your small business is incorporated, a board is required by law. Whether you are filling a required board or looking for good advise for your existing startup or small business with a board of directors, choose wisely. A well-chosen board will be a valuable asset to your company.

Comments: Do you have any other Ideas of what is needed to pick a Board?