A new company started by a fresh, enthusiastic entrepreneur will often choose a private corporation as its business form. With a start up company, the entrepreneur will not only have to fill key management and director positions, but also seek out a board of advisers. These are the people upon whom the entrepreneur will heavily rely to take his or her new business idea to the next level, as well as even help in obtaining venture capital.
The board of advisers can help transform a start up company into a viable investment opportunity for a venture capital firm. Their experience, status, and networking contacts are always a benefit, especially during the funding phases. Here are some other top qualities you need on your start up board:
Share the Vision
Does the candidate share your vision with your product or service? It’s essential that you get board members involved who are receptive to your enthusiasm for your idea.
Successes and Failures
A good board member is one who is not only successful, but has his or her share of setbacks. This kind of experience is invaluable in providing advice for the new entrepreneur in making wise decisions.
Experience with Growth Companies
If you are able to locate board candidates who have previous experience with growth companies, all the better! Their advice will be key in getting your company in front of a venture capital firm for an investment opportunity.
Specialty in Operations
Experienced board candidates will usually be executives or even CEOs of existing companies, but they should have a particular specialty. Consider your industry. The advice from a finance executive, medical operations manager, law firm partner, insurance company VP, or technical research executive could be the catalyst in getting approval from a venture capital firm.
Committed and Available
The board members you choose may share your vision, but not be able to commit to the duration of a board term. Their availability with other projects or commitments may prevent them from giving you the attention you need with your new start up.
Don’t be tempted to ask a great choice to become a board member just because of his or her status. Make sure they can commit to your business growth as well.
Be wise in your choice of board members. Your key board advisers could be the people who help your new business idea turn into the success you dream.