Tips for making your board work for you

In my conversation with Karen Leigh Anderson in Making The Difference podcast she gave very clear guidance in what to think about as you set up and grow your social enterprise. For me, the most important is “ensure that directors believe in what you’re doing”!

1. Understand the importance of governance: Start by choosing your legal structure carefully, which many entrepreneurs overlook initially but proves crucial down the line.

2. Write down your mission: Create a clear mission statement from the start and make sure it is incorporated into your business structure.

3. Establish board meeting schedules and member requirements: This will help eliminate potential issues before they arise and won't need revisiting once established.

4. Think long-term when incorporating a business: Consider future considerations such as different legal structures or community interest companies to ensure sustainability beyond growth ambitions.

5. Be realistic about exit strategies: Remember that selling a business usually means creating value for yourself later on, not necessarily reflecting personal sacrifices made during its development.

6. Know your worth accurately when considering selling a business: The true value lies in profit, not in emotional investment or unpaid work hours put into the company.

7. Understand share percentages and shareholder power dynamics if investors are involved in your venture to align with your vision rather than being swayed by others' opinions

8. Incorporate change into articles of association if you're running a social enterprise aiming at creating societal impact alongside profits

9. Assemble teams or boards for governance purposes with clarity about their roles - whether they're co-founders or shareholders - to protect against well-meaning individuals who might unintentionally derail your mission with their ideas

10.Be strategic in planning to prevent unwanted outcomes and stay focused on executing plans without becoming overwhelmed by good intentions.

11. Ensure directors believe in what you're doing because if things go wrong, they are more liable than shareholders; they play an essential role keeping you legally compliant while reminding you of your vision.