Building the Perfect Board for Your Start-Up: Insights from Rebekah Campbell
Here are five tips from Rebekah Campbell for start-up founders looking to build and run an effective board of directors:
Set Expectations Upfront
You must clearly define what you expect from the director. How will they assist with fundraising, strategy, and introductions? If appropriate, agree on the amount of time they’ll commit to your business. When you have the right people on board, they will likely be proactive in offering ideas and suggestions.
Be Transparent and Organized
Your board should be the one group with whom you can be completely transparent. They are there to help you work through challenges, so they need to understand those challenges to add value.
Ensure Directors Have Relevant Experience
My initial board sounded impressive, but many members were from the wrong industries and had no experience with start-up challenges. This led to bad advice, wrong hires, and overspending. Some had never used social media platforms like Facebook or Twitter and wouldn't even join Posse.
Our current board members have deep expertise in early-stage companies in our field. They understand growth strategies, user engagement, monetization, and cost-saving measures. Almost daily, one of them emails me with a valuable idea or opportunity. They also provide access to a vast network of contacts globally.
Keep the Board Small
Our current board consists of four directors, including myself, and one regular observer who acts like a director without voting rights. This tight group knows each other’s strengths and is committed to making Posse successful.
Like and Trust Your Directors
Directors have more influence than I initially thought. They decide who leads the company, which deals to pursue, and when to exit. Therefore, it’s crucial to ensure you share the same vision from the outset. You need to trust they will do the right thing and stick around during tough times. Many founders have seen their advisors and directors vanish when failure looms. We've had hard times, and I can honestly say our team pulls together and supports each other, no matter what.
(Source: Smart Company)
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