How to Build a Board of Directors That Actually Works
It’s not about control — it’s about influence
I’ll give you the bad news first: When you’re the founder of a growing company, at some point you’re probably going to lose control of your board.
A board of directors is a legally required entity that is responsible for making a company’s most critical structural, financial, and directional decisions. At the very inception of a company, the early startup stage, the board consists of the founder or co-founders, and that’s it. But soon — very soon if the startup is successful in raising money — that board will expand.
As the board grows, the founders will have decreasing control over who is on the board, how it operates, and any constraints on the limits of its power. It can be like creating Frankenstein’s monster — awesome that you brought it to life, until it tries to strangle you.
The good news is that you have strategy and influence on your side, and if you’re careful with your decisions from the very beginning of your growth stage, you’ll have a board that works with you, even for you.
Regulate voting power as your board grows
I’ve advised several companies on board size, makeup, and the logistics around how they operate…
