Why have a board?
As your business grows you may want to think about setting up more Corporate Governance through a Board of Directors, with Independent Directors & a Chairman.
All companies must have at least one director by law. This is usually the owners of the business. And more than likely they’ll get together occasionally & talk about strategy & business planning.
But mostly, that’s not enough… Many companies get to a critical stage where the knowledge, passion and skill of the original owners & directors are stretched. For example, the company might have grown beyond their experience – maybe into new markets. It might need new money for growth & find that its bank or potential investors want to see more “structure”.
If appointing a board is done correctly, the result will be a more effectively run company, and a more profitable company, with management’s efforts being more tightly focused on important projects.