Ten Board of Director Tips

Top Ten Tips to Building a Board of Directors

Top Ten Tips to Building a Board of Directors

We have personally learnt these and many more business skills from one of the best business success coaches and most successful entrepreneurs of our time -Mr. Dan Pena Snr.

1. Make sure you have an industry authority figure as part of you board. For example you are building a company in the healthcare industry, be sure to have a senior experienced person that will add credibility and value to your board.

2. Try to get your board to be as local as possible, whilst this is going to be real tough if looking for quality people never over look regional expertise that will make your contact and meetings much more accessible

3. You want to choose people that are vastly more experienced than you people that have run or been a part of large companies

4. Get an anchor chairman first. He or she will be the bedrock of who you attract to your board, make sure that person fits the criteria mentioned above; vastly experienced, senior, credible and has a clean profile. 5. Be prepared to give away free equity in your business. It can range from 1-2% for just names on your letterhead up to 10-15% to active board members who are out there really working for you.

6. Build your board around your chairman, then your financial controller and then a operating officer as your starting point

7. Once you have the essential three members above build into you board a legal adviser someone who has experience in transactions of companies.

8. Write a rehearsed memo and speech and practice exactly what you want to say many times with enthusiasm passion and grit so that the people you pitch to will feel the dream too.

9. Have the long term goal in mind. You are giving equity away which means one day you will float your company by taking it public or selling your entity. The point is that to realise their equity it must be sold or floated which they expect to happen in a given time frame

10. Choose people that are retired or are close to retirement. These people will have more time to commit and be more passionate about giving their expertise across.

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