1. Executive directors, who run the company
2. Board of directors, made up of both executive and non-executive directors
Normally, the board itself has no day-to-day responsibilities, but will set the overall goals and strategy. They will also have influence over key appointments, including that of the Managing Director or CEO.
Young entrepreneurs and business owners make their biggest mistakes in their early years, before they have gained the wisdom and insights that come from experience. Sable Advisory suggests appointing one or two non-executive directors to your board. Some ideas:
- They could be paid a daily or hourly rate for their input into the business or you could incentivise them, either through a bonus scheme or with shares, on the increased performance of the business.
- They meet up with you and your own board of directors every quarter (at most), or annually (at the very least).
- They should have considerable business experience and be successful.
- You should have a good, honest working relationship with them.
- You should give them a fixed term assignment, ideally between two and five years.
Surround yourself with great people and great things happen. The right people can save you from making some really expensive mistakes; they tend to have good ideas for the business.