from More Business.com 5/11 enhanced by Peter/CXO Wiz4.biz 8/13
A new entrepreneur starting a business needs a great deal of direction & helpful advice. After all, no entrepreneur can do it alone. In addition, depending if the new business form is a Corporation or LLC, the business may be required to have a board by state law. However, how does a new entrepreneur go about selecting a good board of directors?
Responsibilities of a Board
First, it is your duty as CEO, GM or Owner, to know what the board’s responsibilities are. While the Executive Management team like the President, CEO, & CFO are all there to handle the day-to-day responsibilities of a company, the board is comprised of outside experts to help with the general and overall stratigic direction of the company to carry out the Mission & Vision. The duties of the board are usually outlined in the Bylaws, and they generally consist of the following types of duties:
· Help define the Mission & Vision – Their expertise is vital in refining the main “purpose/ mission” of the company and setting that purpose into a “written mission” as well as define the Vision/ Goal/s of where the company wants to go.
· Approve CEO & Management – In most cases of an incorporated business, the board has authority to hire & approve the main management, including the CEO, CFO, and other top management.
· Financial Direction – When it comes to finances, the right board can offer sound financial/ marketing advice for the direction of the new small business.
· Monitor– It is always a good idea to have the board as the “outside eyes” of the company and enforce the strategic plans, ethics, policies, etc. created by the Board & Executive Team.
Qualities of a “good” Board Member
Often, the board of a small business or corporation consists of friends, family, & trusted advisors. And when it comes down to it, you want a board that will be willing to put the time & effort into helping your business through tough times & celebrate in good times. Here is a general list of desired qualities in a board of directors member:
( Qualities of a good Board Member continued [Experienced, Competent, Enthusiastic & Honest] + Selecting Your Board & Other Tips for winning the Board Game in Premium Content )