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November 11, 2021 | 3-minute read (501 words)
Many small- and medium-sized business owners think that forming a board of directors is only necessary for giant corporations. But this isn’t always true. Even a one-person startup can benefit from installing a board of directors.
The board of directors should comprise a set of people with a broad range of experience, such as seasoned CEOs, investors and individuals with industry expertise. They should be well-versed in the operational challenges that startups confront.
The directors ensure that all corporate executives are accountable and focused on the firm's business strategy. They also have the authority to restructure management if the company is not functioning as it should.
A strong board of directors may provide a small firm with a network of specialists and other resources that can help it prosper, especially in the early stages. Typically, the board creates strategies to support the business’ growth.
While the most popular board type consists of paid outsiders who meet at least once a year to oversee the business’s success, it's critical that the board and the business owner complement each other, have similar values and work to create a consistent company culture.
Below are three reasons a well-chosen board of directors helps ensure a business’s success.
Accounting
Finance
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