Startup founders face many challenges, including raising capital, building a solid management team, finding the first customers, and developing competitive products. As a result, it helps to learn how to delegate, know when you are most productive, and automate activities whenever possible.
Doing this allows you to focus on your highest leverage. Regarding “highest leverage,” some founders are most productive through meetings and connections, while others are more productive with deep work as possible.
But one of the most important moves you will make as a startup founder is selecting the members of your board of directors. Here are some valuable tips to consider:
Don’t Compromise on Character
The right board is essential in a startup. You will go through rocky times, so you need people with backbone and integrity, who will take the long view and push back against groupthink. Of course you also need people with great knowledge, skills and contacts but character is fundamental. Don’t compromise. And don’t rely on interviews alone. Do proper due diligence on past performance, and get to know the candidate in a range of settings.
Sometimes, your passion for your business can block you from the objective reality of your establishment. With this in mind, select a board of directors with calm business acumen. The questions and observations from this team can stop you in your tracks, but it is the best way to achieve your goals.
Choose members with achievements and outstanding leadership development qualities. Such a track record prompts you to listen and demands your respect. Their ideas can help in major decision-making processes for the company.
Involve a Business Lawyer
Consult a business lawyer at all crucial steps of your startup journey. If you want to recruit employees and set up a board of directors, consult a business law practitioner experienced in that field. An expert in business legal matters can help you save money and time and achieve your objectives easier.
Align with Your Company’s Vision
Ensure that your employees, especially the board of directors, share in your company and your vision, mission, and values. A board of directors with diverse skills and views is valuable for your company, but alignment on goals and strategy is even more critical.
In addition, it would help to ensure that your members are aligned with themselves and possess excellent communication skills. Ideally, these people will become your monitors and advisors. Investing in executive development to improve your management team’s skills and abilities would be best.
Seek Members with Unique Contributions to the Company
You need a diverse group of directors who contribute uniquely to the company. It helps to have members with expertise essential to your industry and others with valuable networks and influential contacts. Also, choose a thinker who is willing to offer vital feedback. They should also be ready and willing to speak up in opposition to the majority.
Have Members Represent Various Perspectives
Diversity of thought is essential when assembling a director team. In this case, avoid selecting members with similar thought processes and experiences. Aim for diverse board members. Doing that allows you to succeed for your company by exploring different ideas and experiences.
Work with People Who Find Flaws and Challenge Your Biases
Find individuals who see the world from a different perspective from you, those who see the flaws in your argument and challenge your biases. Believing and sticking to your ideas can ruin your business progress. Seek and listen to alternative viewpoints. You may not necessarily have to follow through with them, but they can make your thinking more robust and open.
Invest in the Expertise You Lack
You may not have all the expertise your company needs to scale. Look for complementary experience and knowledge. Find a team of directors that support your company in scaling.
The board of directors should have areas of expertise, competencies, experiences, and perspectives that are most relevant to the areas you need to improve. Such thought diversity can help you make more solid and innovative decisions as you scale your company and grow your leadership.
Choose Members Who Commit to Long-term Engagement
Dedicated board members commit to their roles and responsibilities, including the time and effort required to participate in committees, meetings, and other arising responsibilities. The call is more than mere presence.
It is about full engagement, investment, and willingness to contribute meaningfully. In addition, ensure that your potential board members are willing to commit now and in the long term.
Work with People Who Understand Your Company’s Reality
The tech startup landscape changes rapidly. Working with people who are five years ahead of you would be best. Individuals with a huge operational gap may need help understanding or relating to your current startup state and reality. Board members who understand your reality will help you deal with challenges and achieve your startup goals.
Propelling your startup to success can be challenging for founders. As a result, it is best to identify appropriate talents to help with decision-making and maneuvering challenges. An experienced business lawyer can help determine the right team.