Every Startup Should Get A Board Of Directors -- Even If You Don't Have Funding

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In a recent post on his blog, entrepreneur Will Herman argues that every startup should establish a board of directors — even if you’re small or don’t have funding.

Herman’s main point is that startups need as much guidance as they can get, and a board of directors can offer long-term, formal advising — why wouldn’t you secure mentors who have an official attachment to the success of your company?

To those entrepreneurs who are hesitant about the costs of recruiting a board, are concerned that employing a board will cause them to lose ownership of their startup, or who think they already have informal mentors who can offer them everything they need, Herman responds with three points:

  • “Don’t be cheap. The compensation will be with equity, likely a single percentage point or lower and vesting over four years. What you will get in return will likely help you immeasurably.”
  • “Virtually no one outside wants your job. If they did, they’d just go start another company or take their money to another playground.”
  • “Outside advisors will never have the volume of background data that your directors have to analyse situations nor will they feel the responsibility to do the┬áright thing. Directors are tied to the company’s success and failure. Advisors and mentors are not. There’s a huge difference in responsibility and, ultimately, quality of action.”

Ultimately, Herman argues that early investment in a board could make the difference between success and failure.

Read the entire post at Will’s blog >

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