Why Clients Need A Board

Date: 06/07/2010

Clients run a small business, not a major corporation. Why do they need a board?

If clients are running a small business,? why do they need a board to oversee what they're doing? Adrian McFedries of DC Strategy, who's advised hundreds of businesses, says there are plenty of reasons: a carefully-selected board will allow owners and managers to devote more time to working ON the business as well as IN it. A collection of family and friends isn't the answer. You need independent people with strong professional backgrounds and interests, and you should listen to them. If you're seeking a loan, banks are likely to look more favourably on you if your governance structure is sound, and so will potential investors or purchasers. It doesn't have to be a Board of Directors, a Board of Management can be just as effective, and less expensive. But regard it as an investment, not a burden on the business.