Creating a startup can be difficult. In class we discussed we business models and the startup development phase. A key part of that development phase is getting a board of directors. It’s an essential part of any business (seriously, the law demands it), so not having one will be the downfall of any startup. The board can be as small as one person, but it does have to be there!

“But Matt, why do we need to start a board?” Well the board handles the important things involved with your company, including stock and other financial matters. You may also ask why you need a board when you can handle the finances and stock yourself. Well that’s the beauty of being able to have one member on the board, because that one member could be you. You’ll learn that as a company grows, however, the board will grow with it. The board is the GPS of the company. They are responsible for where the company goes, and what the company decides when it comes to “the big picture.”

Do you know a little company called Apple? Well in the past, the board of directors played a key part in the growth of the company. When they fired their founder, Steve Jobs, it caused new competition to come into the game in the form of NeXT, a company founded by Jobs. The board of Apple decided to buy NeXT and place Jobs back on the board, leading the company to be what it is today.

The board of directors is the corporate backbone. Who you have on the board matters, as seen in the case of Apple. They are not perfect and problems will arise, but in the long run, the board is the company. Since all major decisions pass through the board, it is only there for the good of the company.

What is your take on this intricate part of startups? Do you agree or disagree with having a board and if you were to have one, would it start out being only you? Would you even be on your board? I’d love to hear what you have to say.

Source: https://techcrunch.com/2016/11/05/what-you-need-to-know-about-startup-boards/