- You’re considering internal succession and reduce reliance on you as a business owner
- You’re considering sale or bringing in outside investment
- You need wider input on strategic decisions than you currently have
- Your board or management team doesn’t operate as effectively as you’d like
- You feel ‘too close’ to the business to always trust your judgement
They should bring the following benefits:
- Provide a sounding board and input for strategic decisions
- Reduce risk of reliance on business owner
- Improve the confidence and abilities of other board members
- Greater credibility to clients and outside investors
- Add a different perspective or insight than you currently have within the business
But your choice of director will depend on the specifics of what you really need. Given the costs involved it is worth considering which role is right for your business as well as assessing the right personality for your board not just the most impressive CV.
Please remember that whilst you might find that your new board member bring specific skills or knowledge to your business with them, for example they may be influential in winning a new client, they have the same legal obligations as every other director. You need to ensure that they fully understand these and can discharge them well in addition to any other advantages they bring, not instead of them.