Shedding some Light on when to Establish a Board

Not every company’s position necessitates a board of directors.

Some businesses that are in the startup phase can do well with an unofficial, informal advisory board comprised of trusted employees or management teams. For those that have reached or are approaching the expansion stage, there should be considerations made as to the benefit of assembling a board.

If your company has received funding or is in the process of looking for investors, that’s usually a good indicator that you may need to form a board. Simply put, for companies that are in the early stages of development, a board is unnecessary and may actually be a time-sap.

On the other hand, for the business that is looking to legitimize itself, having a board is an absolute must. Watch this video from OpenView Labs for more on when you should look into creating a board.