When To Start A Board

When to start a Board?

One of the best pieces of business advice I received, was some 20 years ago, when I was growing my first business. We were on our third year of trading, with revenues of £2-3m. My mentor at the time recommended that I ‘set up a board’. I had never been on a board, didn’t quite know what that meant, so I would not have done it was it not for her recommendation. This was one of the best pieces of advice I ever received and one I now give to my clients.

What was it about the board that made a difference?’

We brought in experienced, independent people with complementary experience to ours.
People who understood business growth, good governance, business financing, risk management, etc.
We got together once a month for a few hours – with a proper structure, well prepared, with data in our hands and we thought through actions together.
Our Executives (including me) were challenged, we got good advice, we felt supported with experience we did not have ourselves.
The main difference the board made: we simply made better decisions along the years!

At what point in the growth journey do you think founders should be considering appointing a board?

No two businesses are the same. It’s an individual decision. For example, in a business I am working with …

the business was started 15 years ago and operates in a niche market.
It has grown steadily over the years – now c. £5m .
They have a good platform to scale.
Shareholders decided to implement a Board now to help them ramp up growth over the next few years, before selling to top up their retirement pot.

This is what I mean, it’s an individual decision.

What would be the top considerations that businesses should be taking into account when setting up their first board?

Reflect on what it is you want a board for? Talk to people who have done it and what they got out of it.
Make sure you bring in the right complementary skills – not mates, not family. If you are consultant engineers, you probably don’t need another engineer. Bring diversity of thought, experience, challenge into your thinking.
Make sure you also have some of your executives on the board.
Make sure you take stock / evaluate your Board – say once a year.

At Ancora, we have helped dozens of SMEs set up their first board and/or evaluate and improve their existing board.

If you are considering setting up your first board or simply want to share your experiences of having done so, we’d love to hear from you…

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